An essential element of the income tax return is the ITR refund status. It reveals the current stage in which your refund is being processed—whether it has already been issued, continues to undergo processing, or encounters some problems that must get attention from your side. This is a software program that allows taxpayers to monitor their refund status as well as make adjustments to their finances as required.
An income tax refund is a way by which the Income Tax Department compensates the taxpayer for any extra tax paid during that financial year. A refund is issued when the total amount of tax paid by the taxpayer exceeds the actual tax obligation for that financial year. You can file for a claim of the excess tax under Section 237 of the Income Tax Act of 1961. Yet, this can happen only after you finish submitting your income tax return and its accuracy has been validated by the income tax department officials.
Understanding each status is vital for optimal tax planning because the ITR refund status could vary from going through processing to actually being issued. Furthermore, the ITR refund status provides the spotlight on any challenges or irregularities that could have developed all through the refund processing. This may involve difficulties like mistaken bank information, deviations in the tax return, or an application for additional funds to pay tax. Taxpayers may ensure that they are up to date regarding their tax obligations and refunds by frequently verifying the ITR refund status. Through this article, you will learn how to know ITR Refund Status.
what are the 3 stages of refund status?
The procedure for getting a refund is done in three stages. The following are the stages:
- Refund Received
- Refund Approved
- Refund Sent
Following your tax return is completed and processed, you will get your customised refund information.
How to Know the Status of ITR Refund
Tax refund status can be checked in the following ways:
- NDSL website
- Income Tax Department’s e-filing portal
Here is a step-by-step instruction for checking your refund status using both of these methods.
- Go to the NSDL webpage.
- Complete the form on the provided page with your information. Just your Pan Number and the Assessment Year are required. Continue by clicking the button.
- The online portal will show the status of your income tax refund.
E- Filing Portal of Income Tax Department
- Visit and login to the E-Filing portal.
- Choose View returns/forms on the dashboard you are viewing.
- Choose ‘Income Tax Returns’ from the menu that appears under the ‘My Account’ heading. Tap the submit button.
- Select the required acknowledgement number for the specific assessment year of filing that has been provided.
- A page containing your return information as well as your income tax refund status will be shown.
Different Tax Refund Statuses in India
- Not determined: The income tax return hasn’t yet been processed, therefore you must confirm that it was filed and validated accurately.
- Refund paid: A cheque or your bank account will be receiving the income tax return.
- Assessment year not displayed in refund status: You have to file your income tax return for that accounting year immediately as you haven’t done so.
- No demand, no refund: You’re not considered responsible for filing income tax forms, according to the Income Tax Department. If the conflict comes from different computations made by both parties, then you may be required to update your return.
- ITR processed, refund determined, and sent out to refund banker: The Income Tax Department generates the refund request, which is then forwarded to the refund banker.
- Demand determined: The request you made for a refund of taxes not paid was turned down by the Income Tax Department, which instead identified an outstanding claim. For the ITR filing process, you would have to pay the unpaid balance.
- Contact jurisdictional assessing officer: You must get in contact with the AO or the Jurisdictional Assessing Officer in your area when the Income Tax Department desires more details about your income tax return.
Interest on Delayed Tax Refund
One can get simple interest upon the tax refund if the amount is over 10 per cent of the total amount of tax paid for that specific year. The refund amount is liable to accrue interest at an interest rate of 0.5% per month. The interest is determined by calculating it from the start of the following financial year until the return date.
In just a few easy steps, anyone can check the status of their income tax refund. Please be aware that according to your tax liability, you may be obliged to pay interest on the amount of your ITR refund above Rs. 50,000. Therefore, it is recommended to seek professional advice before filing your income tax returns. At Taxxinn, we help you to check or file the ITR with ease.