Income tax refund : common questions and answers

By | December 25, 2015
(Last Updated On: December 25, 2015)

How does Income tax Refund arises  ?

Refunds generally arise due to

(i) Excess payment of tax by way of advance tax, tax deducted at source and tax paid on self-assessment in the context of assessment proceedings;

(ii) refund can arise consequent to relief in appellate proceedings; and

(iii) there could be cases of direct refunds, where a person is not taxable but tax has been deducted from his income at source by the payee.

How does Income tax department sends Income tax Refund ?

Income tax refund

Now a days income tax department directly deposit the Income tax refund into you Bank account mentioned in your Income tax return.

How to check Income tax refund status ?

Refunds can be checked on the website https://tin.tin.nsdl.com/oltas/refundstatuslogin.html  to know the status of your refund.

You need to enter your PAN and the assessment year to which the refund relates in the relevant fields. If you file your return for Financial year 2014-15 then the assessment year will be 2015-16

In order to claim Income tax refund is it necessary that tax return should have been filed within the due date?

No. You can claim tax refund even if you have filed a belated tax return.

what to do income tax return has been filed online and Income tax refund has been claimed but not received ?

In case you have filed your return online and a Income tax refund is due but not received then you have to

  1. login to income tax website www.incometaxindiaefiling.gov.in and login to ‘My Account-My returns/Form’ to know the update on the status of your income tax return .
  2. check whether the income tax return has been processed.The Income tax refund is issued after your income tax return is processed.
  3. Check refund / demand status under My account Tab
  4. You might not receive the refund even if your contact details like bank account number or postal address are wrong.

How to file income tax refund reissue request ?

Refund is normally issued within 4-6 months from the date of filing of income tax return. In case of non receipt of the refund due to wrong bank account number mentioned in the income tax return, you can request for reissue of income tax refund.

  1. login to www.incometaxindiaefiling.gov.in
  2. Go to ‘My Account-Refund Re-issue Request’ and give the necessary details for mode of payment like ECS or cheque and changed or corrected address.
    This needs to be done when the refund is returned due to error in house address, bank details or house locked when cheque is received through post.

Am I eligible for interest on my income tax refund?

Yes you are eligible for an interest on the income tax refund payable to you. Interest is calculated @0.5% per month or 6% per year from the first day of the assessment year until the date when the refund is paid to you. In this case even a part of a month is considered as full month for interest calculation purposes.
E.g. if you have filed the income tax return before due date and  claimed an refund of  for AY 2015-16 and you received the refund in the month of February 2016 then the interest will be calculated from April 2015 to February 2016.

Generally, how long does it take to receive the income tax refund ?

The refund is processed within 4 to 8 months from the date of filing your return online. It takes longer if your file your returns physically at the counter of income tax department rather than online on the computer.

Is the income tax refund taxable?

Income tax refund will not be taxable in your hands as it is only interest on income tax refund that is taxable according to slab rates applicable to you. This is included as income of the year in which the refund is received.

What to do if you do not receive your income tax refund ?

You need to contact the Central Processing Centre of the Income Tax Department on the numbers 1800 4250 0025, and 080-2650 0025. This number is provided on the government’s e-filing portal.

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