When filing income tax returns for the fiscal year 2023-24, taxpayers may be entitled to a tax refund if they have paid more taxes than they owe.
This typically occurs when advance tax, self-assessment tax, and/or TDS, TCS deductions exceed the total tax liability for the fiscal year. Taxpayers can request a refund for the surplus tax amount paid or deducted in a fiscal year by submitting their income tax returns for that year.
The tax authority has introduced pre-filled ITRs on the internet-based platform since 2018. However, verifying the pre-filled details in the ITR form is advised to prevent any mistakes. The income tax refund owed to the taxpayer will be calculated automatically using either the online method or JSON utility after completing the appropriate ITR form.
The calculation can be seen in the ‘Taxes Paid’ section of the ITR form. It’s essential to note that the tax department may not necessarily accept and pay the refund amount claimed when filing the ITR. After filing and verifying the ITR, the income tax department will process it and authenticate the claim made.
The tax authority has stated that e-refunds will be sent to bank accounts that are linked to PAN and have been pre-validated on the new e-filing income tax portal. The State Bank of India has been designated by the department to deposit refunds directly into the taxpayer’s account. To receive the refund, taxpayers must ensure that the bank account where they want to receive the refund has been pre-validated and provide accurate bank details, including bank account number and IFSC code, in their ITR form.
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If the refund is approved, it will typically be deposited directly into this bank account. After the tax return is processed, taxpayers will receive a notification on their registered email informing them about the status of their ITR processing. The notification will indicate the refund amount due to them, along with the refund reference number.
Taxpayers can monitor the status of their refund on the new income tax e-filing portal or by visiting the TIN website. Individuals who file their income tax return will receive interest on the tax refund, regardless of the deadline. The calculation period for interest on refunds depends on the tax payment method.
In the middle of the refund process, the tax department’s processing time and the accuracy of the taxpayer’s information can significantly impact the refund amount and interest earned. As the tax authority continues to refine its e-filing platform, taxpayers can expect a more streamlined and efficient refund process.
Sometimes, taxpayers may find that they have not received their refund despite filing their ITR and claiming a refund. This could be due to incorrect details or the department’s determination that no refund is owed. In such cases, taxpayers can request that the department reissue the refund after supplying accurate bank details, such as their bank account number.
It’s essential to routinely monitor the status of the tax return if a refund has been filed. This will allow taxpayers to track their ITR’s processing and any potential refund, helping them identify any errors in their filing. By doing so, taxpayers can ensure a smoother refund process and avoid delays.
