Income Tax Refund Status 2023-24 | All about Income Tax

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Income tax refund refers to the amount of excess tax paid to the Income Tax Department that is returned to the taxpayer after filing of income tax returns. If the tax liability of a person is less than the taxes paid in advance through TDS, advance tax, etc., the difference is refunded by the Income Tax Department.

The Income Tax Department of India is the nodal agency responsible for monitoring direct tax collections in India. It functions under the Department of Revenue, Ministry of Finance, Government of India. The Income Tax Department is responsible for administration of direct taxes which includes income tax, wealth tax, etc. in accordance with the various direct tax laws. The Central Board of Direct Taxes (CBDT) functions under the overall supervision of the Department of Revenue.

Understanding Income Tax Basics

Income Tax Act

The Income Tax Act 1961 is the governing legislation for levy and collection of income tax in India. It provides for the taxation of individuals, HUFs, companies and firms. The rates at which they are taxed and the consideration for administering this tax are also provided in the Income Tax Act.

Income Tax Calculation

Income tax calculation involves computing tax liability based on the taxable income. Taxable income is calculated by reducing permissible deductions from the gross total income. The tax rates are then applied on the taxable income to arrive at income tax payable.

Income Tax Collection

Income tax is collected through the following modes:

TDS (Tax Deducted at Source) – Tax deducted at source refers to the tax deducted by the payer on payments made to the payee. TDS Is deducted at the specified rates from payments like salary, interest, commission, rent, etc.
Advance Tax – Advance tax refers to the income tax paid in an advance in the same financial year. It is paid in installments – 15% by June 15, 45% by Sept 15, 75% by Dec 15 and 100% by March 15 every year.
Self-Assessment Tax – Tax paid after the end of a financial year but before filing income tax returns is called self-assessment tax.
Regular Assessment Tax – Tax determined on regular assessment is paid after processing of income tax returns.

Income Tax Deduction Section List

Some major income tax deductions under different sections of the Income Tax Act are:

Section 80C – Deductions for life insurance premium, ELSS, PPF, NSC, etc.
Section 80D – Deduction for health insurance premium.
Section 80E – Interest on education loan.
Section 80EE – Additional deduction for home loan interest.
Section 80EEA – Additional deduction for affordable home loans.
Section 80G – Deductions for donations made to charitable institutions.

Income Tax Return (ITR)

An Income Tax Return (ITR) is a prescribed form through which taxpayers declare their taxable income and taxes paid in a financial year. ITRs have to be filed within the due dates prescribed by the Income Tax Department. Different ITR forms are applicable for individuals, HUFs, companies, etc.

Income Tax Rules in India

The income tax rules in India are governed by the Income Tax Act 1961. Some salient features are:

Residents are taxed on their global income. Non-residents are taxed only on the income that accrues or arises in India.
Individual income up to Rs. 2.5 lakh is not taxable. Senior citizens have a higher exemption limit.
Income tax slabs are progressive – higher the income, higher the tax rates.
TDS, advance tax and self-assessment tax have to be paid during the financial year.
ITRs have to be filed within due dates to avoid late filing penalties.

Income Tax Slabs FY 2023-24

The income tax slabs and rates for individuals and HUFs for FY 2023-24 are:

Up to Rs 2.5 lakh – Nil
Rs 2.5 lakh to 5 lakh – 5%
Rs 5 lakh to 7.5 lakh – 10%
Rs 7.5 lakh to 10 lakh – 15%
Rs 10 lakh to 12.5 lakh – 20%
Rs 12.5 lakh to 15 lakh – 25%
Above Rs 15 lakh – 30%

A cess of 4% is levied on the tax rates. Senior citizens above 60 have higher exemption limits.

Filing ITR & Getting a Refund

How to file ITR for FY 2022-23 (AY 2023-24)?

Steps to file ITR for FY 2022-23:

1. Determine residential status. Taxability varies for residents and non-residents.

2. Choose the right ITR form applicable to you – ITR-1, 2, 3, 4, 5 or 6.

3. Collect Form 16, salary slips, interest certificates, etc.

4. Calculate taxable income after claiming deductions, exemptions, etc.

5. Pay any additional self-assessment tax, if due.

6. File ITR online on the e-filing portal. Ensure all details are correctly entered.

7. E-verify the ITR after submission, else return will be invalid.

Which ITR Should I File?

ITR form applicable depends on the residential status, income level and source of income.

ITR-1 – For resident individuals with income up to Rs. 50 lakh from salary, one house property, interest, etc.
ITR-2 – For individuals and HUFs not having income from business or profession.
ITR-3 – For individuals and HUFs having income from business or profession.
ITR-4 – For individuals, HUFs and firms with presumptive income from business or profession.
ITR-5 – For firms, AOPs, BOIs and other persons.
ITR-6 – For companies other than companies claiming tax exemptions.
ITR-7 – For persons including companies required to furnish return under special provisions.

How to claim income tax refund?

Follow these steps to claim income tax refund:

File income tax returns within the due date for the relevant assessment year.
Report the correct bank account and address details in the ITR for refund processing.
Match tax payments like TDS, advance tax, self assessment tax with total tax liability.
Claim refund amount if total taxes paid for the year exceed net tax liability.
Receive acknowledgement after verification of ITR details.
Track income tax refund status online regularly after filing returns.
Receive refund via direct credit to bank account mentioned in ITR.

Advance Tax

Advance tax refers to income tax paid during the financial year in lieu of the tax liability for the said year. It is paid in installments on specified due dates.

Advance tax is paid in the following installments –

15% of tax liability by 15th June
45% of tax liability by 15th September
75% of tax liability by 15th December
Remaining tax liability by 15th March

If advance tax paid is less than required, interest at 1% per month is levied under Sections 234B and 234C.

Checking Refund Status & Troubleshooting

Checking Income Tax Refund Status Online

Income tax refund status can be easily checked online in real-time through the income tax e-filing portal.

Taxpayers can login to the e-filing portal using their PAN and password. Under the ‘My Account’ tab, click on ‘Refund/Demand Status’ option. The refund status for the latest or previous assessment years will be displayed. Taxpayers can track the stage of processing of refunds.

How to Check your ITR Refund Status FY 2022-23 (AY 2023-24)?

Follow these steps:

1. Visit www.incometax.gov.in

2. Click on ‘Refund Status’ under ‘Quick Links’

3. Enter PAN number, choose assessment year, select ITR form number.

4. Click ‘View Tax Credit’ to view refund status

The status of refund is displayed as either ‘Refund Issued’, ‘Refund Failed’, ‘Refund Rejected’, etc. based on processing stage.

Income Tax Refund Status – How To Check ITR Refund Status For FY 2022-23 (AY 2023-24)?

ITR refund status for FY 2022-23 can be checked by:

Logging into e-filing account on incometaxindiaefiling.gov.in
Going to My Account > Refund/Demand Status
Entering details – Assessment year, Refund type, Verification mode
Viewing latest updates on refund issued or pending
Checking CPC status about refund failure or rejection

Meanings of different Income Tax Refund Status

The different status messages when checking income tax refund status along with their meanings are:

Refund Issued – The refund has been processed and issued to the bank account mentioned in ITR.
Refund Failed – The refund transfer to bank account has failed due to incorrect bank details in ITR.
Refund Rejected – The refund claim has been rejected due to mismatch in tax calculation, income details, etc.
Refund Pending – The ITR is under processing and refund is yet to be issued.
Refund Under Processing – The ITR is being processed by CPC for issuance of refund, if any.
Defective Return – The ITR was filed incorrectly and has errors that need correction.
Return not Filed – ITR not filed for the assessment year.

What does my refund status mean?

Common refund status messages and their meaning are:

Processing – Return is received and verification is pending
ITR Processed – ITR processing is completed. Any refund due will be issued.
Defective ITR – Errors or discrepancies found. ITR needs correction.
Verification Failed – E-verification of bank account, PAN card, etc. has failed.
Refund Aborted – Refund not currently due. Excess taxes not paid.
Refund Issued – Refund is credited to the bank account given.
Rectification Processed – A rectified return has been processed.
Demand Raised – Additional demand raised that needs to be paid.
Adjustment Against Demand – Refund adjusted against tax demand and interest.

What to do if Income Tax refund is pending?

If income tax refund is pending, following steps can be taken:

Ensure ITR contains all details correctly, especially bank account number.
Track status online by logging into e-filing portal regularly.
Check if any intimation is raised with queries. Respond within stipulated time.
Contact assessing officer at Jurisdictional IT office if refund delay is more than 1 year.
Rectify any errors or mismatches in ITR through revised return.
Raise complaints online or via specified grievance redressal channels.
Claim interest for delay beyond 3 months from due date of filing return.

Additional Information

Income Tax Saving Investments

Popular income tax saving investment options under Section 80C:

Public Provident Fund (PPF)
Employees’ Provident Fund (EPF)
Equity Linked Savings Scheme (ELSS)
National Savings Certificate (NSC)
Sukanya Samriddhi Yojana
Life Insurance Premium Payment
5-year Tax Saving Bank Fixed Deposits

Income Tax Payment Details

Income tax payments can be made via:

Net banking – Make direct tax payments online via net banking of any bank.
Debit/Credit card – Use RuPay or Visa or Mastercard to pay direct taxes online.
UPI – Make instant income tax payments using UPI apps like BHIM, Google Pay, Paytm, PhonePe, etc.
NEFT/RTGS – Generate challan online and use NEFT or RTGS to make payments.
Cash – Pay tax at authorized bank branches via cash with challan generated online.
Cheque/DD – Drop cheques or demand drafts with income tax challan at RBI or authorized bank branches.

Income Tax Refund via a Cheque

If the bank account is changed or invalid, income tax refund is issued via cheque. Steps are:

Cheque petition is filed with Jurisdictional Assessing Officer.
Verification of pending refunds due and payee identity is done.
After approval, refund cheque is dispatched to registered address.
Cheque can be deposited to any account or encashed across the counter.
Intimation of cheque dispatch is sent to the payee.

Requesting Tax Refund Reissue

For tax refund reissue, follow these steps:

Login to e-filing portal and register grievance under ‘Request for Rectification’.
Select reason – ‘Tax Refund not received’ or ‘Tax Refund Reissue’.
Enter details – PAN, AY, Refund amount, Correct bank account details.
Upload supporting documents as required.
Post submission, CPC processes the request based on merits of the case.
Rectified order passed and intimated via registered email id or portal account.

Updating Address/Email/Mobile Number

To update contact information, taxpayer must:

Login to e-filing account and click on ‘Profile Settings’.
Under ‘Personal Information’, edit and save mobile number, email ID and address details.
Submit supporting address proof documents online or visit nearest IT office.
New details will be updated across IT department’s databases post verification.
Intimation of updated profile is sent to taxpayer via email and registered mobile number.

Using the E-Filing Website

E-filing portal allows taxpayers to:

Register online using PAN
File income tax returns
View tax credits, refunds status
Make online payments
Download forms like Form 16, 26AS
Track and register grievances
Communicate with IT department online

Frequently Asked Questions about Income Tax Refund Status

Can I check my income tax refund status online?

Yes, income tax refund status can be easily checked real-time by logging into the e-filing portal using PAN and password. Under ‘My Account’, click on ‘Refund/Demand Status’ to track refund.

Can any other person get my tds refund?

No, TDS refund can only be claimed by the person for whom TDS is deducted by the deductor. Name of both parties should match for issuance of refund.

Can income tax refund be credited to another account?

Yes, income tax refund can be credited to any other account provided correct new account details are furnished while registering grievance for reissue of refund.

Do I need to file Income tax return to get an income tax refund?

Yes, it is mandatory to file income tax returns within specified due date to claim any refunds for excess taxes paid during the financial year. The ITR should correctly report all income and taxes paid.

Do you have to pay taxes if you earn income in cash?

Yes, any income earned in cash is fully taxable. There is no exemption for income earned via cash transactions. It has to be reported in ITR and applicable taxes need to be paid.

For how many previous years can I claim an income tax refund or check my online refund status?

You can claim income tax refunds and check refund status online for returns filed in the last 6 assessment years. For earlier years, records are archived and process needs to be initiated manually.

How is the interest on income tax refund calculated?

Interest on income tax refund is calculated from the date of payment of excess tax to actual date of refund, at the prevailing rates. Interest rate is 0.5% per month for every month or part thereof.

How long will it take to get the refund?

The typical time period to receive an income tax refund is anywhere between 2 weeks to 2 months from date of filing ITR. Processing is faster if return is e-verified, has no errors and refund due is less than ₹1 lakh.

How many days does it take for a tds refund to get credited to my Bank Account?

TDS refunds should get credited to bank account within 45-60 days from date of filing ITR. However, if ITR is picked up for review or verification, refund processing can take up to 3 months time after filing.

How much is tax-free income in India?

There is no tax applicable on annual income up to ₹2.5 lakh for individuals under 60 years of age. For senior citizens above 60 years, income up to ₹3 lakh is tax exempt. Differently abled taxpayers have higher exemption up to ₹5 lakh.

How to Check ITR Refund Status through TIN NSDL Website?

Visit TIN NSDL website – tin.tin.nsdl.com
Click on ‘Refund Status Enquiry’
Select ‘PAN based enquiry’ and enter PAN and AY details
Enter online captcha code and submit
Refund status is displayed on screen

How to contact an assessing officer for an income tax refund?

Find your Jurisdictional Assessing Officer from Income Tax website
Draft a written application citing pending refund details
Visit the Assessing Officer with PAN card and application
Provide any additional documents requested to support the refund claim

How to do ITR Status Check through E-Filing Website?

Login to Income Tax e-filing portal
Go to My Account tab and click on ‘e-filed Returns/Forms’
Select relevant AY and click on ‘View Filed Returns’
Status of filed ITR along with date of filing is displayed

I am eligible for a refund as per my ITR but haven’t received it yet?

Firstly, check refund status online. Contact bank if status shows credit.
Ensure your PAN and bank account details in ITR are accurate.
Match taxes paid with declared income to ascertain refund eligibility.
Wait for prescribed time period of 2 months post filing.
Raise online grievance for resolution if refund still pending.

I forgot to file my Income Tax Return within the due date. Can I claim my refund now?

No, you cannot claim income tax refund if return is filed post due date. Only returns filed within cutoff date are processed for refunds. For late returns, any refund claim lapses.

I missed my ITR filing due date, can I still claim my refund now?

If original ITR due date is missed, any refund claims also lapse. You can still file a belated return but will not get any refunds. Only interest and penalties for late filing can be minimized.

If my income tax refund has been delayed, will there be any compensation for me?

Yes, if refund is delayed beyond 3 months post filing or from due date, you earn compensatory interest at 0.5% per month for the period of delay attributable to the income tax department.

Is income tax refund taxable?

No, income tax refund received is fully exempt and not considered taxable income. The refund represents excess taxes paid by you earlier and is returned by the IT department.

Is the due date for filing income tax returns the same for all taxpayers?

No, ITR due date for salaried individuals and other taxpayers who do not need audit is 31st July. For taxpayers needing audit like businesses, due date is 30th September. For partners or firms, due date is 30th November.

Is the income of tuition teachers taxable?

Yes, income earned from tuitions is fully taxable under the head ‘Income from other sources’. Tuition teachers have to report such income in ITR, pay applicable taxes and file returns before due date.

Is the income tax refund & TDS refund status the same?

Yes, income tax refund and TDS refund status are one and the same. The refund is issued against excess TDS deposited after adjusting overall income tax liability for the year. The status reflects real-time updates on the refund issuance.

Is there a limit to the number of times revised returns can be filed?

Yes, an ITR after once being revised can only be revised one more time. Hence, maximum 2 revisions are allowed for an original return. The last revised return overrides all previously filed returns.

Is there an income tax refund helpline?

Yes, the Income Tax Department has launched a dedicated ‘Refund Helpline’. Taxpayers can contact 1800 4250 0025 to get assistance on refund status, declined refunds, unreceived refunds, etc. Toll-free queues in English and Hindi are available.

Conclusion

Checking income tax refund status online is a quick and convenient facility provided by the IT department. Taxpayers must ensure accuracy of all details while filing ITR to expedite refund processing. Persistent follow up and grievance redressal can help resolve pending refunds. A little awareness about common refund status messages helps avoid confusion. So in the new financial year, ensure to file ITR correctly before due dates and avail speedy refunds on excess taxes paid.

Also Read: Understanding Section 206CQ of Income Tax Act and Tax Collected at Source (TCS)