Everything you Wanted to Know About Income Tax Refund


Income tax refund arises in cases where taxpayers pay a higher amount compared to their actual tax liability (including interest). This refund is mentioned under Sections 237 to 245 of the Income Tax Act, 1961 and Form 30 is used for this purpose. 



How to check income tax refund?

Individuals can check their income tax refund through the Income Tax e-Filling website or TIN NSDL website.

Via Income Tax e-Filling website


  • Visit the official website.
  • Login with username and password.
  • Go to ‘View Returns/Forms’
  • Click on ‘Income Tax Returns’ and select the relevant assessment year to check the IT refund.
  • Click on the acknowledge number, which will open a pop-up window. This window will display the IT refund of a taxpayer.

Via TIN NSDL website

  • Visit the official website.
  • Enter the PAN details.
  • Select the relevant assessment year.
  • Enter the CAPTCHA.
  • The current status of refunds will be displayed.
How to claim IT refund?

Taxpayers can only claim a refund after verifying their income tax returns. They can verify their IT returns in two ways –

Offline

Individuals can send a physical copy of their ITR (V) to the Centralised Processing Centre (CPC) in Bengaluru within 120 days of filing their returns.

Online

Taxpayers can opt for an online method which is quicker and less time-consuming. They can complete this process through the OTP they receive on their registered phone number.
Even though there are 120 days to complete this process, taxpayers should note that the earlier their return verification is approved by the CPC, the sooner their refund on income tax is generated.



Reasons for delay in IT refund processing

Owing to several reasons, an income tax refund is not always processed on time. Such reasons can be –
  • If tax returns computed and filled by an individual is incorrect as per the income tax slab. 
  • Due to the discrepancies regarding the bank account, this process can be delayed sometimes.
  • Individuals who opt for an offline method for their IT return verification sometimes face delays with their IT refunds.
  • Last but not least, at times, there are delays from the side of the IT department for any reason.  
Interest on IT refund

According to Section 244A, the Income Tax Department is liable to pay interest at the rate of 0.5% on the refund amount per month. This interest is calculated from the 1st April of a particular assessment year till the date a refund is granted. This interest is only paid in case the amount is 10% or more of the total tax paid.  

Filing income tax returns is necessary if an individual wants to avail different services, like a home loan.

Lenders ask for recent and updated ITR; failing to provide such documents can affect the home loan eligibility criteria of a borrower.

HFCs like Bajaj Housing Finance Limited offers Home Loans against minimum documents, ITR being one of them.

Must Read: - A Comprehensive Guide to ITR Filing

Comments

Post a Comment

Popular posts from this blog

Eligibility Criteria to make the PMAY Beneficiary List

Image
The Pradhan Mantri Awas Yojana was introduced in 2015 with an aim to build 20 million houses by the end of March 2022. This central housing scheme primary facilitates individuals belonging to the Economically Weaker Section, Lower Income Group, and Middle Income Group of the society by offering home loans with subsidized interest rates. As a borrower, if you want to avail a home loan under this government scheme , you need to meet the demands of the eligibility criteria to make it to the PMAY beneficiary list. Eligibility criteria of PMAY Homebuyers can make the PM Awas Yojana list if they meet these conditions – Applicants who already own a pucca house in any part of India are not eligible for this housing scheme, even if their family member owns such a property instead of the PMAY applicants themselves. Applicants who have already availed a subsidy scheme initiated by the Central or State Government of India are not eligible for PMAY. Existing applicants of PMAY are...
Read more

Know the essential features of Home Renovation Loan

Image
A home renovation loan, also known as a home improvement loan, is one of the major financial products that help individuals to deal with financial liabilities arising from old residential structures, extension of an existing building, damages caused by degraded plumbing, as well as corrosion of walls and ceiling due to age, or any other structural issue of the property. Individuals who want to fund their home renovation loan should also be aware of the important features of such loans to reap the maximum benefits. What are the features of home improvement loans?   The significant features of home renovation or improvement loans are as follows –  End-use – Individuals can use this loan to meet the financial burdens emerging from renovation, repairs, and extension of their residence. Individuals who have availed home loans can also seek top up loans from their lenders to avail finances necessary for home décor items, construction of a garage, repainting o...
Read more

Top 5 benefits of filing ITR regularly

Image
According to the recent budget, if taxpayers apply for the new tax regime, their income will be taxed as per the recent tax slabs. An individual whose yearly income is above Rs.2.5 lakh is subjected to pay income tax to the Government of India. Those eligible to pay tax should file income tax return regularly to report about their yearly revenue. Filing tax returns has become simpler. E-filing income tax has not only made paying tax and reporting it easier, but it also helps one to avail a few benefits, such as – One of the primary benefits an individual can avail from filing tax returns regularly is that they can avoid paying any penalties.     An individual who regularly files their tax return can avail a hassle-free approval on their visa application.     One can apply for a tax refund by the regular filing of income tax returns.       Other than applying for tax refunds, an individual can also claim tax exemption...
Read more