How to Get Income Tax Refund in India?

We all file ITR every year, but many of us are not aware of the process of Income Tax Refund is done.

You have the eligibility to get the income tax refund if you have made a payment of more tax to the administration or government than the actual liability of tax. This generally happens if the advance tax, TDS deducted of self-assessment paid tax is greater than that of the total liability of tax of the payer of tax.

Procedure for claiming Income Tax Refund:

You can claim Income Tax Refund if you have paid excess tax during a fiscal year while filing your income tax returns for the respective year.

According to the Income Tax Act, an individual has to file his return in the appropriate assessment year by 31st July to claim a refund. The financial year right away following a fiscal year is the significant assessment year for the respective FY.

An individual can file his return either by offering the necessary data in the forms online or by uploading the java utility form or filled excel, only for the ones who are eligible to file form ITR 1 or ITR 4. Up to the assessment year 2016-17, this provision was available for ITR 4s and ITR 1.

The claim refunded reflects in the ITR your file:

Once the entire applicable ITR form is filled by you, then you have to click the Validate tab on the ‘Tax paid and Verification’ sheet. The system will automatically compute the refund due to you, depending on the details you enter. The amount refunded will reflect in the ‘Refund’ row.

This is the amount refunded that you have claimed and not essentially what the IT department accept and pay. The Income Tax Department will decide the refund amount once you process your return.

After filing and verifying your Income Tax Return, the IT Department will further process it and validate the authenticity of the claim you made.

Once the processing of the returns is done, you will receive intimation depending on the result of the processing. In many cases, the intimation u/s 143 (1) is sent showing any one of the aforementioned:

  • That your calculation for tax matched to the details of the tax department and you do not have to pay more tax.
  • That your computation does not match to that of the income tax department and there is extra tax known as tax demand has to be paid by you.
  • That your computation must match to that of the department of tax and it accepts the refund claim.

In the case of the e-filed returns, you will receive the intimation through an email. You will receive an SMS on your registered mobile number while sending the email. The SMS will state that the ITR that you have filed has been processed. In case more information is required by the IT department or the department picks up a scrutiny for your ITR then you will receive a notice under a separate section in place of section 143 (1).

If the department accepts the refund due to you, the intimation will state the payable amount of refund. You will get a refund reference number by the department. You can keep a track on the status of his refund after logging in to the official website of income tax e-filing and clicking on Demand Status/Refund Status tab under ‘My Account’ tab.


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