Tax Refund is determined when Tax deducted at source is more than income tax accessed. Tax Refund can be claimed through proper filing of Income tax return.
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Income Tax refund arises when the taxpayer has total advance tax in excess of total tax payable, this total advance tax is in the form of Advance Tax deposited, Tax deducted at source (TDS), Tax collected at source (TCS) and self assessment tax paid. Most of the time while computing the tax liability after year end there might result in refund of tax due to excess of advance tax deposited.
Income tax refund can be claimed by filing proper income tax return, the tax payer must also ensure to enter correct bank account details for the processing of refund. Tax payer must also ensure to verify and validate the income tax return filed online. Verification of Income tax return can be done through Aadhaar based OTP, Internet Banking profile, De-Mat account etc. Alternatively the tax payer also has option to physically sign the Income Tax Return Acknowledgement (ITR-V) and send it to Income tax department through post or courier. For verification of Income tax return the tax payer get 120 days from the date of filing return, we recommend to get the verification done as early as possible, without verification of income tax return filed, the return would not be processed and this would result in delay in refund.
After filing of relevant income tax return and getting it verified, the return will be sent for automatically processing at CPC (Centralised Processing Cell), At CPC the return will be checked for its arithmetical accuracy and mapping of tax paid is also checked electronically. After processing of return through CPC the tax payer may get intimation to correct the return if any arithmetical or prima facie error is detected at CPC. After successfully processing of return at CPC, the tax payer will get the intimation of refund processed. Thereafter tax refund will be issued and credit in the bank account which was mentioned by the assessee at the time of filing of return.
There might be instances that refund processed is not credited to the bank account, this may happen due to following factors:
- Tax Refund is adjusted with any previous year outstanding demand
- Return is sent to Jurisdictional Officer and subsequent notice is issued for further scrutiny
If there is any outstanding demand in any previous year, then a proper notice for adjustment of same with the refund is served on the assessee. The assessee has got proper time for making reply and opportuinity of being heard before making adjustment of refund from any outstanding demand, thereafter the refund will be adjusted from the outstanding demand.
If the return is sent to Jurisdictional officer for further processing, and the Jurisdictional officer is of the view that that further detailed scrutiny is required and has proper reasons to belief then a notice is served upon the assessee for scrutine of tax return along-with questionnaire, till finalization of scrutiny proceedings refund amount will be kept in abeyance.
Tax Refund status can be checked online using PAN of the tax payer and assessment year for which refund is sought, this facility is provided on “Tax information Network” (TIN) of Income tax department, it can be assessed on ‘https://tin.tin.nsdl.com/oltas/refund-status-pan.html, alternatively income tax refund status can also be checked from the user login on the portal of Income Tax.
With the ever changing Law and regulatory requirements, we keep on track and advise the same on timely manner in order to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your tax return filing and its refund and thereafter will provide you detailed analysis mentioning the law requirement and compliances need to fulfill in order to get tax refund economically and efficiently. We at ReturnFilings.Com will provide you details of regulatory filings in order to ensure proper smooth and timely compliances. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliances need.