22 Feb



Tax Refund

What is a Tax Refund?

A tax refund is a reimbursement to a taxpayer of any excess tax amount paid to the central government. This can be in the form of tax deduction at source (TDS), advance tax, self-assessment tax, tax collected at source, foreign tax credit etc.

 If you get a tax refund, it usually means you overpaid your taxes last year. Now day’s mostly sole proprietors, Partnership, LLP or Private Limited companies are the most eligible for getting an income tax refund.

The reason a taxpayer get a refund

·        Some salaried person forgot to give tax-saving details to his HR team & they deducted TDS as per income tax slab

·        Some time, taxpayer-paid tax-saving instruments in the month of March. That time company does not accept the details and the company asked for file your return and get a refund

·        In the case of taxable income below exemption limit & taxpayer have TDS credited in his 26 statement

·        In the case of extra advance tax paid to the government and at the timing of income tax filing income is below as taxpayer expected in that case taxpayer will get a tax refund.

Process of getting an income tax refund

 There is no separate process of getting an income tax refund due to the taxpayer. The taxpayer simply files income tax returns as per his nature of income and ensure his return is electronically verified through Adhar OTP, EVC generated through a bank account or physically submitted to CPC department Bangalore within 120 days of return filing.

 After processing your Income-tax return CPC department will determine your tax refund and you will get intimation through SMS and email. In between, if you have any previous outstanding tax demand with the income tax department then this tax refund amount will adjust with that outstanding tax demand under section 245. So always check if you have any previous dues.

Sometimes bank account and IFSC code entered in ITR is not matching with the system that time your tax refund hold with the department. After completion of true and correct details in the tax department then you will get a tax refund amount.

How to check the tax refund status?

It is easy to check the tax refund status online. First click on the below link https://tin.tin.nsdl.com/oltas/refund-status-pan.html then one window will open, in that window you have to enter your pan no and select assessment year which you want to check refund status then enter captcha code then click on proceed. Next, you will check your tax refund status.

 Types of income tax refund status

 ·        Not determined:- It suggests that your ITR has not proceeded and you need to check your income tax status after a few days

·        Refund paid:- It suggests that your income tax refund has been sent to you or has been credited to your bank account

·        Refund failed:- it suggests that when the refund amount could not be credited to your bank account because of wrong bank details

·        Refund expired:- it suggests that the refund cheque is valid for 90 days and after 90 days over then you will have to get a refund cheque reissued in your name

·        The Cheque has been encashed:- it implies that cheque has been received and has been encashed

·        Refund Returned: - it implies that refund cheque returned to the income tax department due to not properly addressed. In such cases, you will have to send a request to re-issue your income tax refund.

·        Refund adjusted against last year’s outstanding demand:- it implies that if you have any pending tax demand from the income tax department then your income tax refund may get adjusted against your income tax refund amount.

 Alliance Tax Experts is the one-stop solution for all your Financial Needs. We are the leading Income Tax, GST & Company registration services provider in Mumbai, Maharashtra, India.

We provide consultancy starting from Company Registrations, Income Tax Filing, Accounting, GST Filing, Income Tax Audit, GST Audit services. We offer comprehensive compliances services for proprietors, partnerships, Private limited companies, limited liability partnerships, OPC private limited Companies, Trust and Individuals.






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