Income Tax Refund - Everything you need to Know

Who is Eligible for an Income Tax Refund?

There are many cases wherein you will be eligible for a refund. Some of them are:

1. If the tax you've paid in advance on the basis of self-assessment is more than the tax payable on the basis of regular assessment.
2. If your TDS from salary, interest on securities or debentures, dividends, etc. is higher than the tax payable on the basis of regular assessment.
3. If the tax charged, based on regular assessments, gets reduced because an error in the assessment process was resolved.
4. The same income is taxed in a foreign country (with which the government of India has an agreement to avoid double-taxation) and in India as well.
5. If you have investments which offer tax benefits and deductions that you have not declared.
6. If you find, after considering the taxes you've paid and the deductions you are allowed, that the tax paid amount is in the negative.

How Long Does It Take to Get an Income Tax Refund? 

As we all know, the last date of ITR filing was on 15th September 2025. Once the taxpayer has e-verified the ITR, the income tax department will initiate the tax return process. After the tax return is processed, it will take around four to five weeks for the refund to get credited to the bank account of the taxpayer. Apart from this, it has also been observed that the tax return can also be processed within seven to eight days of filing the ITR.

The income tax refund will be send to you after the ITR is processed by the Income Tax Department. You will receive a notice under Section 143 (1) of the Income Tax Act, 1961 at your registered email ID and at your e-filing account on the income tax portal. This notice will contain information on whether the tax calculations of the individuals can match with the tax department. In case of any discrepancies, then it will inform the taxpayer if there is any tax refund due.

Due Date to Claim Income Tax Refund

Income tax refunds must be claimed within one year from the date on which the assessment year ends. However, in certain cases, assessing officers tend to entertain refund claims that were filed after the specified due date.

However if you forgot to file my Income Tax Return within the due date you can file a belated return upto December 31st.

Here are some points you need to keep in mind:

1. Income tax refund claims will not be considered if six successive assessment years have been completed.
2. The refund amount must be less than Rs.50 lakh for a single assessment year.
3. Interest will not be offered on refund of late claims.
4. If the delayed claims require verification, the assessing officer could reconsider the claim.

How to get Income Tax Refund in India?

When you file the return of your income, you can avail tax refund. In general, the date for filing income tax returns is 31 July  of every year unless extended.

It is important to note that:

1. This claim should contain a document of proof of return of income in a prescribed form, unless you've already made such a claim to the Assessing Officer.
2. Non-residents whose income is subject to TDS should make the claim for refund to the  ‘Assessing Officer, Non-resident Refund Circle, Bombay’.

If you have been charged tax under the provisions of Section 192 - 194, Section 194A and Section 195 on your income (for dividends, etc.), the claim should be accompanied by the necessary certificates recommended under Section 203.

Understanding the Income Tax Amount that I will get back?

In order to find the amount of income tax that you will get back as the refund, you must calculate the tax liability that is associated with you. If the amount that you have paid as taxes is more than the tax liability, then you will get the extra amount as a refund.

How is Income Tax Refund Processed?

The Income Tax authorities who are present at the Centralised Processing Centre (CPC) in Bengaluru are responsible for processing the Income Tax (IT) refund. The refunds are processed once the assessee files his/her Income Tax Returns (ITR). If any tax reimbursement arises at the time of processing the ITRs, the IT refund banker receives the orders for refund of income tax which are generated and transferred by the IT authorities.

How is the Payment of Income Tax Refund Made?

The payment of income tax refund is made in one of the following methods:

1. Direct transfer of the amount to be refunded to the taxpayer's bank account: This is the usual method which is used for the purpose of transferring the income tax refund amount to the taxpayers. The transaction might be made through NECS/RTGS. It is important on the part of the taxpayer to make sure that all the details pertaining to his/her bank account are properly furnished in the return forms at the time of filing the returns. This enables the easy and fast movement of funds directly to the account.
2. Income Tax Refund via cheque: This method is an alternative option for transferring the Income Tax refunds. In the case of the bank details provided by the taxpayer at the time of filing the Income Tax Returns (ITRs) is not unclear, incomplete, or wrong, the Income Tax authorities issue a cheque addressing the account number which is furnished by the taxpayer at the time of filing his/her returns.

How do I Track My Income Tax Refund?

The IT department allows you to track the status of your refund. If your refund procedure has not been completed by your officer in charge, you will receive a message notifying you of the same.

Just follow these two steps to claim income tax refund.

• Get Refund through Direct Transfer: Excess tax paid can be refunded to you by crediting your bank account with ECS transfer. RTGS/NECS are also used to transfer the tax refund directly into your account, using your 10-digit account number and MICR code, through the State Bank of India. You can track your income tax refund through the http://www.incometaxindia.gov.in website or through NSDL-TIN website by clicking on "Status of Income Tax Refunds". You will then need to enter your PAN number and assessment year for refund details.
• Refund by cheque: You can track this with the speed post service that has been tasked with delivering it, using the reference number that the IT department will give you.

Interest on Delayed Income Tax Refund

Under Section 244A of the Income Tax Act, in case the refund payment is delayed, the Income Tax Department is liable to pay interest at 6%. The interest applicable to your refund amount shall be computed from the date on which the tax was paid to the date on which the refund was made.

For example, if you claim a refund of Rs.10,000 for AY 2022-23 and you received the refund in March 2023, the interest applicable to your refund will be computed from April 2022 to March 2023.

How to Update Details with Income Tax Department  

In case you want to update details such as your mobile number, email address, or address with the IT department, follow the steps mentioned below: 

Step 1: Visit the official website of the income tax department.  

Step 2: Log in to your account. 

Step 3: A dashboard will appear on the screen. Click on it.  

Step 4: Modify your bank account and/or contact details.  

The central TIN database is automatically updated with the changes you made to your bank and address information. You will receive the refund amount on the basis of these changes.  

How to Apply for Refund Reissue 

After verifying your income tax return, you can reach out to the IT department to check your income tax refund’s status. One of the main reasons for delay in the income tax return refund might be an issue with your bank account or address information. In this case, you need to request a ‘refund reissue’ to the IT department.  

This request can be placed only after you receive an intimation. The steps for refund reissue application are as follows: 

Step 1: Visit the official website of the income tax department.  

Step 2: Log in to your account. 

Step 3: A dashboard will appear on the screen.  

Step 4: Click on the ‘Pending Actions’ option.  

Step 5: Click on the ‘Refund Reissue’ button.  

Step 6: The refund reissue page will appear on the screen. Here, click on the ‘Create Refund Reissue Request’ option.  

Step 7: Choose the bank account where you wish your refund to be deposited.  

Step 8: Click on the ‘Proceed To Verification’ button.  

Step 9: An Electronic Verification code (EVC) is required to submit the request for refund reissue.  

Step 10: Click on ‘Submit.’ The status of your refund reissue will be displayed on the dashboard.

Whom should I contact for refund related queries?

1. In case of any queries related to the refund of excessive tax, you can contact Aayakar Sampark Kendra Toll Free No. 1800-180-1961 or email at refunds refunds@incometaxindia.gov.in.
2. For queries related to refund or any modification in refund record with respect to return processed at CPC Bangalore, you may call the toll-free number 1800-425-2229 or 080-43456700.
3. For any payment related query, you should contact SBI Contact Centre Toll Free No. 1800-425-9760.

How do I rectify the mistakes in the name, account number on the refund cheque received by me?

1. In case of any discrepancy regarding your name or account number, send back the cheque to CMP Operations Centre, State Bank of India, Survey No.21 Opposite : Hyderabad Central University, Main Gate, Gachibowli, Hyderabad -500019 requesting for the cancellation of the cheque.
2. In a separate letter mention the mistake and what should be the correct information instead.
3. You can also modify your name and account number by visiting the official website of Income Tax Department of India and log in to the portal to modify your name and account number. Once that is done, the information will be initiated and a new refund cheque will be sent to you.