The deadline for filing income tax returns (ITRs) was July 31, 2024, and taxpayers are now awaiting refunds for any excess taxes paid. According to the latest figures, over 7.28 crore ITRs were filed, marking a 7.5% increase from the previous year.
While not all taxpayers will receive a refund those who have overpaid their taxes will be eligible for one. The refund process begins once the return is filed and approved by the income tax officer, offering financial relief given the typically lower TDS rates compared to income tax slab rates.
What is a Tax Refund?
An income tax refund is issued when the total tax paid during the financial year exceeds the actual tax due. This can occur from TDS, advance tax, or self-assessment payments.
When you file your income tax return (ITR), the income tax department reviews your payments and assesses whether you’ve overpaid. If so, a refund for the excess amount is processed. This ensures you receive back any overpayment, though no interest is paid on the refund. To prevent overpayment, it’s important to estimate your tax liability accurately and adjust your payments throughout the year.
When Do You Get the Tax Refund?
The refund process begins once the e-verification of your return is completed. Generally, it takes 4 to 5 weeks from the date of e-verification for the refund to be credited to your account. This period is counted from the e-verification date, not the ITR filing deadline.
If the refund is not received within this timeframe, review your tax return for discrepancies and monitor your email for any notifications from the income tax department about your refund status.
How to Check Refund Status
Check the refund status on the income tax e-filing site as follows:
1. Visit the official income tax e-filing website.
2. Log in using your PAN details.
3. After you log in, proceed to the 'My Account' section.
4. Click on “Refund/Demand Status.”
5. View your refund status, including details such as the assessment year, current status, reasons for any refund issues and payment mode.
