ITR filing 2024: If you have submitted your income tax return (ITR) and verified it with the Income Tax Department, there is a chance that you have not received your tax refund yet. Numerous taxpayers have reported a delay in receiving their income tax refund, with some waiting up to six months.
One must note that prior to issuing a refund, the Income Tax Department must ensure that certain criteria are met. One of the primary reasons for delay as identified by the Income Tax Department can be due to an unvalidated bank account.
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Taking to X (previously Twitter), the Income Tax Department said: “A validated bank account is necessary for receipt of refunds. Here’s how you can check your bank a/c validation status on e-filing portal.”
How to claim Income Tax Refund
To claim an income tax refund, you can do so by filing your Income Tax Return (ITR). It is important to verify your ITR through online modes or by offline mode, which involves sending a signed copy of ITR-V.
One should note that the Income Tax department will process your refund only after verifying your ITR. The refund is subject to assessment and verification by the department. Your refund claim will only be deemed valid and legitimate if it passes the department’s verification process.
When can you Claim an Income Tax Refund?
Excess TDS deducted: Employers typically deduct taxes based on the documentary proofs provided by employees, such as investments under 80C and medical insurance premiums under 80D. However, there are instances where employees fail to provide proof for certain investments before the end of the financial year, leading to a higher deduction by the employer.
Employees can still claim the benefits of these investments while filing their income tax returns and receive a refund for the excess taxes paid.
Not in Tax Bracket: Some individuals may not fall within the taxable bracket, i.e. their income is less than Rs 2.5 lakh, and are not required to pay any taxes. However, taxes may have been deducted from their income. In such cases, these individuals can claim a refund for the excess tax deducted.
Excess TDS on interest income: Banks are required to deduct TDS on interest earned from FDs or bonds if it exceeds the limit set in the Income Tax Act.
Advance tax: If you have paid more advance tax than your actual tax liability for the financial year based on self-assessment, you can claim a refund when filing your ITR.
Additional taxes: Taxpayers may be asked to pay additional taxes if income tax officers make adjustments to their income during tax proceedings. These adjustments can be challenged and refunded if necessary.
Tax paid in more than one country: In cases where an individual is a resident of one country but earns income in another, a scenario known as dual taxation can occur. India has established Double Taxation Avoidance Agreements (DTAAs) with numerous countries to address this issue.
These agreements enable non-resident Indians to seek a tax refund if their income is subject to taxation in multiple jurisdictions. Any surplus tax paid can be reclaimed as a refund in accordance with the provisions of the DTAA.
How to check your refund status
To begin, please log in to incometax.gov.in.
Once logged in, navigate to My Profile and select My Bank Account.
Click on the option to Add Bank Account.
A new window will appear where you must enter your bank account details.
Ensure to specify the account type (savings or current) and holder type (individual or company).
Include the unique IFSC code of your bank branch.
To confirm and verify with the bank, click on the ‘validate’ button.