How to Check Income Tax Refund Status?
Posted on: 08 August 2018 by Dawn Richard
The income tax refund status can be found online on the official website of the income tax department.
If you had paid taxes in excess of the actual payment, you are eligible for tax refund. You can claim the refund while filing the income tax returns. If you are eligible for a refund, the refund status will be updated on the website after the confirmation by the income tax department. You will also get an email and SMS on your mobile phone about the refund amount being credited to your account.
Status of refund
You can find the income tax status of refund on the website, https://www.incometaxindia.gov.in/Pages/default.aspx.
If you enter the PAN (Permanent Account Number) and select the assessment year, the refund status will be displayed on the webpage.
To get the refund from the income tax department, you should file the returns.
Filing of tax returns
Income tax returns can be filed in three simple steps:
Verify the data
Complete the e-Filing steps
Alternatively, you can fill the online form after logging into your account on the income tax website. If you are accessing the website for the first time, you should register on the website. The registration can be completed by providing your PAN, date of birth, email address and mobile number. The OTP (One Time Password) sent to your mobile number should be verified to complete the registration.
After successful registration on the income tax website, you can access your account by entering the PAN, date of birth and the password.
The online account will help you trace the returns filed in the previous financial years. If you had filed returns online, the records are available online. You will also be able to find the status of the returns.
If there are any compliance issues, you will get intimation from the income tax department by email and the same can be found in the dashboard as well. Hence, you can fulfill your requirements quickly and efficiently by entering the appropriate data in the compliance form.
Steps to find the refund status on income tax website
Visit the income tax website, https://www.incometaxindia.gov.in/Pages/tax-services/status-of-tax-refund.aspx
Enter username, password, date of birth and captcha to login to your account
Go to ‘My Account’
Click on ‘Refund/Demand Status’
You will find the following information:
Reason (If the refund is rejected)
Mode of payment
Refund status on TIN NSDL website
You can find the income tax status of refund on the TIN NSDL website as well. The refund status can be found on the website 10 days after the income tax department sends the refund confirmation to the SBI. All refund requests will be disbursed by the State Bank of India.
Perform the following steps:
Visit the website, https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
Enter PAN details
Select the assessment year
Enter the Captcha
Click on ‘submit’ button
Refund status message
The following message will be displayed when you check for income tax refund on the official website of the income tax department or the TIN NSDL website:
Expired – The refund status may be expired if you fail to deposit the cheque sent by the income tax department before the deadline. If you had opted for refund by cheque, the cheque will be sent to your address by registered post. The cheque should be deposited in your bank as per the instructions given by the income tax department. Failure to deposit the cheque within 90 days of the issuance of the cheque will lead to the expiry of the cheque. If the taxpayer fails to submit the cheque to the bank within the due date, he/she should raise a ‘refund re-issue’ request to the income tax department.
Refund returned – The income tax refund will be done by either ECS or cheque/demand draft. If your bank details are incorrect, the ECS transaction will fail. If you provide wrong correspondence address to the bank, the cheque/demand draft will return. In either of these two cases, the refund will not be done to the taxpayer.
Processed through direct credit but failed – The refund was initiated by the State Bank of India successfully. However, it was not completed due to the following reasons:
The bank is not active
The bank account was on hold or restricted
A different account (PPF or fixed deposit) account was provided by the taxpayer
The taxpayer provided NRI account
The account holder is not alive
A discrepancy in the account information
Refund processed by NEFT/NECS but failed – If the taxpayer provides incorrect IFSC/MICR code or account information or account description, it will lead to failure of the transaction. Even though the income tax department initiates the NEFT/NECS, the transaction will be rejected due to incorrect account information.
Adjusted against the outstanding demand of previous years – In some cases, the income tax department may adjust the refund against the outstanding demand of the taxpayer. If there is an outstanding amount of previous assessment years, the refund will be adjusted. If there no payable amount after adjustment, no refund will take place into the taxpayer’s account. The income tax department has the authority to adjust refund under Section 245 of the income tax act.
ECS refund advice not reflecting in the bank account – The income tax department has raised the ECS refund advice. However, it was not reflected in the bank account. You will get an email from SBI about the refund intimation. If the amount is not credited into your bank account, you can approach your bank. You can also send an email to [email protected] to get information in this direction.
Raising of refund re-issue request
If your refund request failed due to any of the reasons listed above, you can file a refund re-issue request to the income tax department. The following steps should be performed to accomplish the task:
Visit the income tax website, www.incometaxindiaefiling.gov.in
Click on ‘My Account’
Select ‘Service Request’
Select ‘New Request’
Select the request category, ‘refund reissue’
You will find a new screen and should enter the following details:
Communication reference number
Click on ‘Submit’ button
You should enter the bank details
You should enter the communication address
The process will be completed by verifying by EVC (Electronic Verification Code) or performing the Digital Signature Certificate (DSC).
Refund without filing income tax returns
If you would like to claim a refund from the income tax department, you should file returns by offline or online. If you fail to file the returns, it is not possible to make a refund request as well.
Hence, it is important to file the returns before the deadline as stipulated by the income tax department.
Deadline for filing income tax returns
You should file income tax returns every year before July 31st. In some cases, the IT department will extend the date for filing income tax returns . For example, the last date for AY 2018-19 has been extended from July 31st to August 31st. The date may be extended due to the difficulty faced by the taxpayer in filing the returns due to various reasons.
Drawbacks of filing late returns
If you fail to file returns before the deadline, you will invite penalty by the income tax department.
The following penalty is levied from FY 2017-18:
Rs. 5000 if the returns are filed after the due date (July 31st)
Rs. 10,000 if the returns are filed after December 31st
If the total income of the taxpayer is less than Rs. 5 lakh per annum, the penalty will be Rs. 1000.
Benefits of filing returns
There are many benefits associated with the filing of income tax returns.
Participation in nation building – By paying taxes as per the rules laid down by the Government of India, you will participate in nation building as a respectable citizen of the country. The funds collected through tax will be used by the government for the implementation of various kinds of welfare schemes towards the development of weaker sections of the society. The funds will be used for protecting the country and to provide the necessary infrastructure such as power, road and rail transportation, etc.
To claim a refund – You should file returns to claim a refund from the income tax department. There are people who invest in fixed deposits. The interest earned beyond Rs. 10,000 in a financial year will undergo TDS by the bank. If the income of a person is less than Rs. 2.5 lakh (for resident Indian) he can claim a refund by filing returns.
To carry forward losses – If you incur losses in the current financial year, it can be carried forward to future years. If there is a short-term capital loss, it can be adjusted against the long-term or short-term capital gains. On the other hand, the long-term capital loss can be adjusted against the long-term capital gains only. The long-term capital loss can be carried forward up to 8 consecutive financial years. Thus, you can set off your losses in a very efficient way. If you fail to file the income tax returns, it is not possible to carry forward those losses.
Visa processing – If you are leaving the country on immigration, the visa processing office would like to go through your income tax records. If there is any amount due to the income tax department, you will not get a visa until the matter is settled with the income tax department. Hence, you should not only pay taxes and should them before the deadline for smooth processing of the visa application.
Insurance cover of high value – If you wish to buy a higher value of insurance on life, you should want to prove your income. For self-employed and professional, the ITR (Income Tax Returns) will help them in this direction. IT returns can be submitted as an authentic document to various financial institutions including life insurance corporations and banks.
Loan from banks and financial institutions - Self-employed and professionals can take loans from banks and other financial institutions by submitting IT returns. The ITR will be helpful in applying for bank loans such as home loans, personal loans and vehicle loans.
Proof of income - Business people and self-employed persons will not get Form 16. Hence, they can file income tax returns if the income is above Rs. 2.5 lakh per annum. It is also possible to file a return even though the annual income is less than Rs. 2.5 lakh. The ITR statement will help individuals to get loans and other benefits.
Participation in government tenders - If you would like to participate in tenders called by the government department, you should want to show the income proof for the past 3 financial years. You can ascertain your financial status by presenting the IT Returns.
Documents required for filing income tax returns
Savings & investment certificates
Capital gains statement
Form 16 will be issued by the employer which contains the tax deducted from the source (if any) and credited to the income tax department. You will find the TIN and other relevant information as well which should be filled in the online ITR form on the website.
Form 26AS can be accessed from the income tax website or the bank’s site which is linked with your PAN. It will have tax credits under various sections made by the employer, banks, tenants, etc.
If you have access to the bank statement, loan statement, savings certificates and capital gains statement, the ITR can be filed accurately. It is also possible to make a refund request precisely so that the IT department will process your claim quickly and easily.
You can find the income tax status on the official income tax website or the TIN NSDL website. If you file returns accurately, the refund request will be processed by the income tax department and it will be credited in your bank account.