Income tax is an amount that every citizen who has an earning source has to pay. This tax is not optional. This is compulsory for everyone who earn money in whatever ways possible. Being a country citizen, one must pay taxes because they regularly access public property. Roads, parks, public washrooms, highways, and more are provided to every citizen daily. A person may give more income tax to the government than their actual liability. In this case, when a person gives more than the required tax to the government, they can apply for an income tax refund.
If the refund application is considered genuine, then the required department refunds the excessive amount paid by the citizen of India. The income tax refund in India is issued directly to the bank account of the person who filed for the income tax refund.
Who is eligible for Income Tax Refund?
There are various kinds of cases that may come into notice which will help you know that are you eligible for an income tax refund or not, that are-
- If the assumed tax amount paid by you is more than the actual amount that should be paid, then you are allowed and eligible for an income tax refund filing since you paid extra money.
- If the tax deducted at source and liabilities and expenses are shown more than what they should show as measured in the regular assessment.
- If incorrect deductions are shown in the report.
Due date to claim an income tax refund?
The income tax refund should be filed and claimed within one year from the actual date over which the particular assessment year finishes. Whereas in some cases, there can be possibilities where the assessing officer is required to refund the claims, which tend to be filed after some specifically mentioned due date.
How is the payment of income tax refund made?
There can be two possibilities or the modes through which the income tax department would pay the income tax refund to the country’s citizens. These two methods are-
- Transfer into the bank account: If the income tax refund application issued by the taxpayer is found to be valid, and the claims are real, then the income tax department would initiate the refundable amount into the taxpayers’ bank account since the income tax department already holds all the bank account details of all the taxpayers.
- Payment through cheques: there are cases where the bank details mentioned by the taxpayers are, because of any reason, unclear or the refund cannot be issued through that mode, then there is an alternate option or the facility for providing a refund through cheque. The refund amount cheque is issued and delivered to the taxpayer’s residence.
How to check ITR status?
The process of checking income tax refund status is quite easy. First, the taxpayer needs to go to the official site for the income tax and then go to the income tax refund option, and further, there will be the ITR status option. Click on it and enter your details. You’ll get the status of your refund application.