Too Much Tax Deducted? Step-By-Step Process For Refund
Claiming a refund is an easy process, but it does require proper filing and verification.
If you have found that too much tax has been deducted from your income, you're certainly not alone. Many salaried employees, pensioners, freelancers and even students encounter this issue every year.
The good news is that the Income Tax Department has a well-established process to help you recover any excess tax paid. Here's a step-by-step guide on how to claim your refund and what to expect.
Who's Eligible For Refund?
Anyone who has paid more tax than required can claim a refund. If you believe you've paid excess tax through means like Tax Deducted at Source on your salary, interest income or professional fees, you're eligible to get it back.
How To Claim Your Income Tax Refund
Claiming a refund is an easy process, but it does require proper filing and verification. Follow these steps:
File Your Income Tax Return: Start by filing your ITR through the official Income Tax e-filing portal at incometax.gov.in. You'll need to provide all the relevant details, such as your income, deductions and the taxes you've already paid.
Verify Your ITR: Once the ITR is submitted, it must be verified either online through the e-filing portal or through a physical signature (in rare cases. The verification process is important as it allows the tax authorities to confirm the information you've provided.
Wait For Processing: After the ITR is filed and verified, the Income Tax Department will assess your return. If any excess tax has been paid, a refund will be processed and credited to your pre-validated bank account.
Timeframe For Receiving Your Refund
Usually, once your ITR is verified, the refund will be processed within 30 to 60 days. But the timeframe can vary depending on various factors, such as the complexity of the return and the workload of the tax department.
If the refund is delayed beyond the expected timeframe, the Income Tax Department pays interest on the excess amount at the rate of 0.5% per month (6% annually). This interest is calculated from the start of the assessment year (April 1) until the refund is issued.
How To Track Your Refund
Through Income Tax e-Filing Portal:
Log into your account on the official e-filing portal.
Go to the 'e-File' section and click on 'View Filed Returns' under the 'Income Tax Returns' menu.
Select the relevant assessment year.
You will be provided with an acknowledgement number that redirects you to a page with details about the filing, verification date, refund status, and the mode of payment.
Through TIN NSDL Website:
Visit the TIN NSDL portal.
Enter your PAN details and select the relevant assessment year.
The status of your refund will be displayed on the screen.
If you've had too much tax deducted, claiming a refund is a hassle-free process as long as you file your return accurately and promptly. Be sure to monitor the status of your refund through the available channels and know that you are entitled to the money you overpaid.
