If you have paid tax greater than the amount that is payable by you for the financial year, you are eligible for a refund.
Examples of conditions where tax refund is applicable -
There are many cases where a refund is applicable to you. Some of them are -
- If the TDS deducted on any income source is more than applicable.
- If the tax paid is more as per your self-assessment either due to overestimation of income or not taking into consideration deductions or tax benefits while calculating the income tax.
- If you have been taxed twice for the same income earned abroad and India has a treaty of Double Taxation Avoidance Agreement (DTAA) with the country where you earned the income.
If the amount paid by you is more than the tax applicable to you, the ITR will show the excess amount.
If your taxable income is within the exemption limit, but are eligible for a refund, you have to file a return.
The amount will be deposited in the savings bank account that you have mentioned in the Income Tax Return form. If there are multiple accounts, you can select the account where you want the refund.
Tracking Refund -
You can check here to find out if you have a refund. You can check your tax refund status here. You can request for re-issue of refund here. Enter your PAN and the assessment year to get the details.
Interest and Tax on Refund -
You can receive an interest of 0.5% of the refund amount per month from start date of the current financial year till the date of refund if refund is more than 10% of the total tax payable.
If the refund has been delayed due to an error on the assessee's part, there will be no interest paid.
Adjust Refund with Outstanding amount -
The income tax department can set off refund with outstanding amount after an intimation in writing is sent to the tax payer.
Request for Refund Reissue -
If refund for some reason like incorrect details etc. is not credited to your account, you can request for a re-issue on the website.
Important points about Tax Refunds -
- The tax credit should be reflected in the 26 AS statement. If it is not there, then you are not eligible to get a refund.
- The refund amount is not taxable. The interest received on refund is taxable in the financial year, it is received.
- If you have received money less than the refund due, you can request on the website if the return is still with the Central Processing Centre. If it has been given to an Assessing Officer, you will have to make a written application to the Assessing Officer. The status can be visible on the Income Tax website in your account.
- Request for refund can be made for direct electronic transfer or cheque.