As the deadline for submitting Income Tax Returns (ITR) draws near, it is vital to ensure that you submit your returns in a timely manner. Whether you have already completed the filing or are yet to do so, it is of utmost importance to finalize the process before July 31st to prevent any penalties or interest fees. Once you’ve done with the filing, the next step is to wait for the refund status.
It is worth emphasizing that income tax refunds are applicable to all individuals who are obligated to file their ITR, regardless of whether the filing has been completed or not. It is essential to comprehend that a refund is not always issued if you have paid more taxes than your actual liability and are qualified for one. To make a refund claim, you must complete an income tax return (ITR).
According to the income tax act’s requirements, the taxpayer is entitled to interest on the amount of advance tax and TDS/TCS that exceeds their net tax liability. The taxpayer is not entitled to interest if there is a delay in submitting a claim for a refund that is their fault. The interest on the income tax refund that was received is taxable to the taxpayer.
An income tax refund refers to an amount reimbursed by the income tax department when the taxes paid, whether through TDS (Tax Deducted at Source), TCS (Tax Collected at Source), Advance Tax, or Self-Assessment Tax, exceed the actual tax liability. The tax liability is calculated by considering all applicable deductions and exemptions during the assessment process conducted by the income tax department.
2. How many weeks will take an ITR Refund
Only once the taxpayer has electronically confirmed the return will the tax department begin processing refunds. The refund typically takes 4-5 weeks to appear on the taxpayer’s account. If a refund isn’t received in this time frame, the taxpayer must look for any indication of ITR issues and check their email for any refund-related notifications from the IT department. According to the procedure outlined below, the taxpayer can also check the status of their refund when e-filing.
3. How to view Refund/ Demand Status, please follow the below steps:
1. Login to e-Filing website with User ID, Password, Date of Birth / Date of Incorporation and Captcha
2. Go to My Account and click on “Refund/Demand Status”
3. Below details would be displayed.
4. Reason of Fund Failure
A refund from the Income Tax Department scheduled to be paid may fail to get credited to your bank account for the following reasons:
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