An Income Tax Refund is a kind of refund that is given to the tax payer, if he/she has paid more tax than he/she was supposed to. It is a reverse payment provided to the tax payer by the Income Tax authorities.
There are numerous situations, where an individual becomes eligible for tax refund and they are as follows: -
In India you can claim income tax refunds, by filing income tax returns. The last date to file your income tax return every year is the 31st of July, but there can be an extension for contingencies. You must also have made sure that your ITR is error free and that there are no discrepancies between your Form 16 and Form 26AS. Also read this blog.
To know the exact refund amount, you need to calculate the tax you are liable to pay and then you need to check, how much you have actually paid. If you deduct your tax liability from the tax paid, you will get your refund amount. You can use our income tax calculator which will give you the exact amount you need to pay.
You can expect your money back within 2 to 6 months, from the date of e-filing income tax return, if you file your income tax return manually it may take more time to get refund. You can get tax refund in the form of a cheque or the amount will be credited to your account. You can claim up to 2 previous financial years.
People Also Searched For
The period for processing is 90 days, if this validity period expires, then it would be marked as expired or cancelled. If your status says returned, then it means that, your refund has been returned unreceived. In that case your refund will be cancelled and retained at CMP centre. This is because of the statute of limitations in law.
The above rule holds true in case you have received refund through a cheque.
Thankfully, yes! Section 239 of the Income Tax Act, 1961, clause 2, says that no claim for refund would be allowed for a previous assessment year except when claimed within a period of 1 year from the day the last assessment year ended.