income tax refund status


Income tax refund status – Taxpayer eligibility to receive a refund.

A taxpayer is eligible for an income tax refund status if he has paid a higher amount then his actual tax liability. There are various reasons which could lead to this kind of a scenario. Some of these examples are as below :

  • The employer generally deducts taxes of his employee as advance tax. An employer does it after taking into consideration of the various Tax Saving documentary proofs provided by an employee.
  • As an example 80C, 80D, 80E However, there are some situations where an employee is not able to produce a documentary proof for tax savings before the end of a particular financial year. This may accordingly deduct a higher amount. However, the benefit of such investment may be claimed by the employee while filing his return of income and therefore claim a refund of the higher taxes paid.
  • If the advance tax that you have paid, on the basis of self-assessment, is greater than the tax that you are liable to pay as per the regular assessment.



Additional Taxpayer eligibility to receive a refund.

  • If your tax deducted at source (TDS) from interest on securities or debentures, dividends, interest earned, salary etc. is more than the tax payable based on the regular assessment.
  • Also, if the tax charged on the basis of regular assessments is reduced due to an error in the assessment process which was resolved.
  • If you find that that the tax payable is in the negative, after considering the taxes you’ve paid and the deductions you are allowed.
  • In case you have investments that offer tax benefits and deductions, which you are yet to declare.
  • Some individuals may not come within the taxable bracket at all. Say his income would be less than Rs 2.5 lakhs. So, he would not have to pay any taxes. But, unfortunately, taxes would have got deducted on his So, he can claim a refund of the excess taxes deducted.
  • Taxpayers may be asked to pay additional taxes by their income-tax officer following certain additions made to their income during income tax proceedings. Such additions may be deleted by appeal authorities. The Taxpayer will get refunds the excess amount he has paid wrongly.
  • In case the same income is taxed in a foreign country (with which the government of India has an agreement to avoid double-taxation) and in India as well.



income tax refund status procedure

When a taxpayer claims a refund in his income tax return, the tax department checks such return. The taxpayer would receive an intimation from CPC under Section 143(1) which will confirm the amount of refund that he is eligible to receive.

The refund can either match with or it could be higher / lower than what is claimed in the income tax return. This refund amount is the amount he would finally receive from the income tax department.

How to check for refund status Online?

Once the refund is calculated, the same is processed by the income tax department. The status of refund can be checked in either from :

  1. The income tax e-filing portal or
  2. The NSDL website


income tax refund status

The income tax e-filing portal

  1. Visit the income tax e-filing portal.
  2. Log into your account by using the user id, password, date of birth/ incorporation and the “captcha code”.
  3. Next click on “log in” button.
  4. Next click on “View Returns / Forms”
  5. Enter “Income Tax Returns” from “Select an option” and enter the relevant Assessment Year(AY). Then click on “Submit”.
  6. Now, click on the acknowledgement number. The income tax refund status will appear as highlighted.

The NSDL Portal

  1. Click to the NSDL website for checking of the refund status.
  2. Enter your PAN, the AY and the image appearing in the screen and then click on “Submit”.
  3. Once this is completed, get the status of your refund.



Different Types of Income Tax Refund Status

  • Not Determined – This refund status indicates that your refund has not processed yet. Therefore, you have to check your previous income tax status.
  • Refund Paid – This means that the income tax refund has refunded via a cheque. Or it has transferred to your registered bank account.
  • Refund Failed – This means that the income tax refund could not be credited to your registered bank account. Because of inaccurate details provided by you.
  • The Cheque is Encashed – This indicates that the income tax refund cheque issued by the Income Tax Department has received. Also, you have encashed it.
  • Refund Returned – This means that the cheque that has been issued against your name by the Income Tax Department has been returned. In such cases, your income tax refund will be cancelled and you will have to request the IT Department to re-initiate your income tax refund by issuing a new cheque.
  • Refund Adjusted against Last Year’s Outstanding Demand – This is when you have an outstanding income tax refund from the previous assessment year. Here, the amount is adjusted against the expected income tax refund from the current assessment year. The Income Tax Department notifies the taxpayer about the refund adjustment from the prevailing assessment year against the pending demand from the previous assessment year.
  • Refund Expired – This status may appear only for those who have opted for receiving their income tax refund through cheque. When the refund cheque has not to be encashed within 30 days from the date of issuance (the date mentioned on the cheque at the top right corner), it expires. Under such circumstances, you have to get another refund cheque issued against your name.

Early filing of return leads to early refund receipt

No doubt, a taxpayer has a time limit of 120 days from the date of return filing to verify his return. The early you get the verification done, the early CPC will process your return. Once the returns are processed by CPC at primary level refund will issue to the taxpayer. But, if verification of return is delayed, processing of return and issue of refund too will be delayed. Further, e verification is faster than physical verification.



What to do if refund ITR is not processed at CPC

Some times it is possible that your return may not be processed by CPC for some reason and no refund is issued to you. Kindly note that taxpayer’s records, for every assessment year, are transferred to the jurisdictional assessing officer by CPC after a particular time period.

An intimation is sent to the taxpayer informing the same. Once files are transferred to the different assessing officer, one can follow up for refund in writing in this regard to the jurisdictional assessing officer and follow up personally.

Interest earned on income tax refund

Sometimes you may get some higher amount then you claim a refund. This is as per rules of interest on an income tax refund. This is payable by income tax department mandatorily if the refund amount is 10% or more of tax paid. It is as per Section 244A. Interest payable is 0.5% per month or part of the month on the refund amount. Such interest is calculated from first April of the assessment year till the date of grant of refund if the refund is due to excess advance tax paid or TDS.



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