Income tax refund refers to the amount paid by the income tax department when the tax paid by the taxpayer is more than the actual amount due
Vimal Chander Joshi
Published2 Aug 2024, 07:10 PM IST
The tax is calculated after taking into consideration all the deductions and exemptions at the time of assessment by the income tax department.
The last date to file an income tax return (ITR) ended on July 31, 2024, and taxpayers are now awaiting the refund of excess tax paid.
The income tax (I-T) department’s latest data reveals that more than 7.28 crore ITRs were filed till July 31, 2024, 7.5 per cent higher than the 6.77 crore ITRs for the preceding year (AY 2023-24).
Although not all taxpayers have tax refunds due in their accounts, there are some of them who — by virtue of having paid more income tax than they were supposed to — are entitled to receive an ‘income tax refund’.
Also Read | More than 7 crore ITRs filed till 7 pm on 31 July: Income Tax Department
What is income tax refund?
An income tax refund refers to the refund amount that is paid by the income tax department when the amount of tax paid is more than the actual amount due. The amount of tax may have been paid by way of TDS (tax deducted at source), TCS (tax collected at source), advance tax or self-assessment tax.
The tax is calculated after taking into consideration all the deductions and exemptions at the time of assessment by the income tax department.
For example, if your outstanding income tax stood at ₹5 lakh for FY 2023-24 but the total TDS and TCS that you paid accumulated to ₹5.6 lakh, then the income tax department (ITD) will issue a refund to you to the tune of ₹60,000 ( ₹5.6 lakh – ₹5 lakh).
When do you stand to get the tax refund?
It is noteworthy that refund processing begins only after the return is e-verified by the taxpayer. Typically, it takes anywhere between 4 to 5 weeks for the refund to be credited to the taxpayer’s account.
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The time period does not start from July 31 but from the day you verify your tax return. 
“Usually, the income tax refund is credited within 4 to 5 weeks of filing Income Tax Return (ITR). This time department is taking time in processing ITRs which is leading to the delay in refund. Taxpayers should ensure e-verification of ITR and pre-validation of bank account to ensure timely refund,” says Chartered Accountant Pratibha Goyal, partner, PD Gupta & Company, a Delhi-based firm.
Also Read | A guide to capital gains tax on property sales: Navigating pre-, post-2001 rules
What if the refund is not received?
In case an income tax refund is not received during this period, a taxpayer is advised to check for intimation regarding discrepancies in income tax return and check email for any notification from the IT department regarding the refund.
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One can also check the refund status on the income tax e-filing portal as per the process given here:
Step I: First of all, the taxpayer needs to go to the homepage of the e-filing portal.
Step II: Now, you can enter the user ID and password. In case the PAN is not linked with the Aadhaar, individual taxpayers will see a pop-up message that says that the PAN is made inoperative for not being linked with the Aadhaar.
Also Read | Missed ITR filing deadline? You can still file belated income tax return
Step III: Now you need to go to e-File tab > Income Tax Returns > View Filed Returns.
Step IV: Here, you can check the refund status for the desired assessment year. Now, you can click on ‘View Details’ and here you can also check the life cycle of your income tax returns (ITR) filed.