Claiming an income tax refund is not a difficult process. Here are few steps to follow for getting income tax refund
- File your Income Tax Return
First and foremost requirement for getting a tax refund is to file your income tax return on time. Income tax returns can be easily filed online the official website http://incometaxindiaefiling.gov.in/. You get the acknowledgement number also for filing the return online with your digital signature. You can also physically sign the ITR-V form generated online and submit it to Income tax processing centre within specified timeline (within 120 days of return filing). Usually, due date for income tax return filing is July 31st every year unless the same is extended by the Income Tax Department.
- Hold back till the Refund is processed
After filing the ITR, income tax department will scrutinize and process the refund, if any. Refund claims are processed through state bank of India. Mode of payment of refund is based on the details furnished by you in income tax return file. It can be through ECS (electronic clearing system) or through demand draft or cheque. If you choose to get the refund credit through ECS, it’s essential to provide all the necessary details such as bank account number, bank branch and IFSC code correctly in the income tax return file.
On the other hand, if you choose to receive the refund by way of demand draft or cheque, the same will be sent to your communication address as mentioned in the income tax return file. Usually, it takes about 3-6 months to get the refund from the date of e-filing the income tax return. It may even take longer time if returns are filled physically.
As we know, simplest way to get the income tax refund is by filing your income tax return for the year. In case your tax return record says you have paid in excess, then the extra amount paid has to be claimed as refund separately. However, it’s important to ensure this excess tax paid is reflecting in your Tax credit statement from 26AS to get the tax refund. Each and every detail of tax paid for the year is reflected in your Tax credit statement Form 26AS as it is linked to your Permanent Account Number (PAN).
In case you do not receive refund within 6 months, log on to the NSDL website (https://tin.tin.nsdl.com/oltas/refundstatuslogin.html). Fill in your PAN number and other details to check the status of your tax refund
- If the status says- ‘refund had expired’ –request for reissuance of refund by logging into e-filing portal. In case return was filed physically, then contact your income tax assessing officer.
- If the Status says – ‘refund had returned’- which means refund payment cheque or demand draft sent to communication address has been returned undelivered or the bank account details provided for ECS are incorrect. In such cases, you should contact your assessing officer to get the refund reissued. In case of e-filing, place a request for reissuance of refund in your e-filing account.
- If the status says – ‘refund paid’- this could be a delay from processing banks end.
Check your account number, IFSC code and other bank details are correctly mentioned. Check with concerned department of SBI for further guidance.
- If the status says – ‘no demand no refund’ which means your IT return is processed, but income tax department has found (after scrutiny of facts and circumstances) that there was no extra tax paid. In such cases you can file for rectification by submitting all the proofs of investment along with form 16.
Another way of claiming a refund is filling up Form 30. Form 30 is a refund request form that needs to be submitted to the Income Tax Department. This request letter talks about the tax amount paid by you which is more than the actual tax liability for the particular assessment year. Form 30 needs to be submitted by the end of the financial year. You need to also enclose the investment proofs and other documents to justify the refund claim. Below is the sample format of Form 30: