Filed your income tax return before the July 31 deadline and expecting a refund? Now comes the part most taxpayers care about — when will the money actually reach your bank account?
If you have paid more tax than you ultimately owed, the Department will process the return and issue a refund for the excess amount. But before you start checking your bank account every day, there are a few things you should verify and a simple way to track the refund online.
An income tax refund is generated when the tax already paid by you is higher than your final tax liability after your ITR is processed.
This can happen for several reasons. You may have paid excess Tax Deducted at Source (TDS), Tax Collected at Source (TCS), advance tax or self-assessment tax. A refund can also arise because of deductions, exemptions or certain tax reliefs claimed in the return.
In some cases, taxpayers claiming treaty benefits or foreign tax credit may also become eligible for a refund.
Before checking the status, make sure your ITR has been successfully verified. An unverified return cannot be processed for a refund.
It is also important to ensure that your PAN is linked to Aadhaar and that the bank account selected for the refund is pre-validated on the income tax e-filing portal. Taxpayers should also check their Form 26AS, Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) for any mismatch in income or tax details.
For returns involving treaty relief or foreign tax credit, taxpayers should also check whether Form 10F or Form 67, wherever applicable, has been filed.
A delayed refund does not necessarily mean that there is a problem with your return. The return may still be under processing, awaiting verification or linked to a bank account that has not been validated.
The easiest way to check the refund status is through the Income Tax Department’s e-filing portal.
First, log in to the official Income Tax e-filing website using your PAN and password.
Once logged in, go to e-File, select Income Tax Returns and then click on View Filed Returns. Choose the relevant assessment year and click on View Details. You will be able to see information about your filed return as well as its refund status.
There is another way to check the status. Go to Services on the portal and select Know Your Refund Status.
The portal will show whether the refund is still under processing, has been issued or has been adjusted against an outstanding tax demand.
Refunds are generally credited within around four to five weeks, although the actual time can vary from one return to another.
A return that requires additional verification or has a higher refund claim may take longer to process. Smaller and straightforward claims may move faster.
So, if you have filed and verified your return but the refund has not arrived yet, there may not be any reason to panic. Checking the status on the e-filing portal is the quickest way to find out where your refund stands.
If a refund is delayed beyond the applicable timeline, interest may also be payable to the taxpayer, subject to the conditions laid down under the income tax law.