What is and who is eligible for Income Tax Refund? If you have heard of Income Tax Refund or you’re just coming across the term. You can read through this article to get an in-depth overview of ITR. Income Tax Refund refers to excess tax paid. Which is in turn refunded back by the Income Tax Department.
Take for instance, if you were to pay a tax of $1000 but you end up paying $1500, your income tax return will automatically show $500. Therefore, $500will be refunded back to you by the Income Tax Department.
However, certain procedures and guidelines need to be followed to apply for an Income Tax Refund which you defiantly need to be aware of. According to Income Tax Act, 1961 and the Income Tax Rules 1962. You are expected to file returns with the Income Tax Department at the end of every financial year.
Also, you can only claim the refund at the time of filling your Income Tax Return. In addition, you need an active bank account to receive the fund and the account must have been validated. In other words, you will only get your Income Tax Refund from the Income Tax Department on the account linked to your form.
Who is Eligible for Income Tax Refund?
As mentioned above, an Income Tax Refund is an amount refunded by the income tax department. If the amount paid by an individual exceeds the actual amount due. However, you will get a refund after all the deductions and exemptions at the time of filling the tax return have been considered. Once you discover that you have overpaid. You need to quickly apply for a refund via the Official website of the Income Tax Department.
Note that; the processing of refunds by the Department will start only after the return is e-verified by the tax filer. Research has shown that this might likely be 25 to 60days before the funds are credited to your account.
But if you haven’t received your refund after the due date, you can always check for discrepancies in your Income Tax Refund by checking your email for a notification from the Department regarding the issue. Note that; you can apply for an ITR for 2020, 2021, 2022, and other past years but you will only be able to claim the refund at the time of filling your ITR form.
How to File Income Tax Refund Online
You don’t need to visit the Income Tax Department just to apply for it as you can do so online. However, certain steps and guidelines must be followed accurately to successfully file for an ITR Online. Below are the steps and guidelines you will need to follow;
- Open your device’s web browser
- Visit the official website of the Income Tax Department of India portal
- Login to the e-filling portal by inputting your User ID ( PAN) and Password
- Confirm your humanity by performing the captcha test and tapping on Login
- Or tap on Register and follow the prompts to create an account
- Click on the e-file menu and tap on Income Tax Return Link
- On the next page, PAN will be auto-populated
- Select Assessment Year, ITR Form Number, Filling Type as Original or Revised Return, and lastly select Submission mode as Prepare and submit online
- Then, tap on Continue
- Carefully read through the instructions and fill out all the applicable and compulsory files of the Online ITR Form
- Select the appropriate verification option in the Taxes Paid and Verification tab
- Once you have selected the best verification option
- Click on Preview and submit button
- Verify all the data you have entered in the ITR
- Tap on Submit ITR and follow the prompt
After successfully filling your ITR via the Income Tax Department portal online, a successful message will be displayed on your screen and you will also receive an email. You can always, verify your submitted ITR using your account by tapping on the e- verify Return option by visiting the official website of the platform to do so.