The Central Board of Direct Taxes extended the deadline for ITR filing (FY 2020-21) for certain...
The Central Board of Direct Taxes announced that it has processed refunds of more than Rs. 1.54 crores to more than 1.5 crore taxpayers from 1st April, 2021 to 10 January 2022. It said on twitter that Income Tax refunds amounting to Rs. 53, 689 crores have been issued in a total of 1,56,57,444 cases, & corporate income tax refunds of Rs. 1,00,612 crores have been issued in 2,21,976 cases.
Income tax refund refers to the process through which the Income Tax Department returns any excess tax paid by you during a particular financial year (FY). It happens when the amount of tax paid by you is more than your actual tax liability for that particular FY. Such excess tax can be claimed as an income tax refund under Section 237 of Income Tax Act, 1961.
Please note that the amount of income tax refund claimed by you as a taxpayer by filing ITR is subject to the verification by Income Tax Department.
This also forms the eligibility criteria to get a refund wherein if you have paid tax more than your actual liability for a FY, you will be eligible for a refund. When you file the ITR, the tax department will then process your return and will confirm income tax refund through an intimation notice. This notice is sent to you under Section 143(1) of the Income Tax Act 1961.
The income tax refunds are processed by the State Bank of India (SBI). The Bank shall credit the refund to the bank account that has been nominated by the taxpayer while filing the ITR. As a taxpayer, you should mention the correct bank account number and the IFSC code in order to get the refund in a hassle free manner. Moreover, the bank account number needs to be pre-validated in the new tax filing portal, and the account should be linked with PAN.
There are two ways of tracking the status of the income tax refunds:
Let’s look at both of these methods.
In order to track status through the new income tax portal-
In order to track status through the NSDL website –
Please note that if the income tax refund is credited to your bank account, it will display a message- “Refund is Credited”. It will also display the last 4 digits of the bank account number, reference number as well as the date of crediting the refund.
It may also display the message- “Refund Returned”. This means that the refund has not been credited to your bank account. This could be due to incorrect account number or incorrect IFSC or such other reasons.
Keep in mind these points in order to ensure that your refunds are processed quickly:
Salaried individuals should ensure that the return acquires salary details specified in Form 16 and should match the salary information in Form 26A available on the income tax department website. ITRs are pre-filled with details like your salary and interest on fixed deposits/NRO savings bank details hence ensure that no tampering is done with such information as mismatches will result in delayed refunds.
Refund is credited only to an account which is validated by CPC even though there is a feature that allows you to add multiple bank accounts for refunds. It is advisable to select only one bank account for refund credit and that account should be active.
Only a pre-validated bank account will receive e-refunds. Hence pre-verification of bank account is necessary.
Income tax refunds are processed by the income tax authorities who are present at the Centralised Processing Centre in Bangalore however, the income tax department allows you to track the status of the refund by the comfort of your home. As per the data released by the CBDT, refunds of more than Rs. 1.54 crores to more than 1.5 crore taxpayers from 1st April, 2021 to 10 January 2022 has been issued.
Read our Article: CBDT extends ITR filing deadline for FY 2020-21