What is an Income Tax Refund??
Are you a taxpayer? Then you must know about income tax refunds. What is an income tax refund? According to the income tax and other direct tax laws, if tax paid by a taxpayer is greater than the actual chargeable amount of tax then you can apply for the refund.
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Reasons For Tax Refund.
- Tax deduction at source (TDS) e.g. If you pay the tax directly from the salary that is called Tax deduction at source (TDS). TDS is deducted on salaries, interest payment by banks, payment of commission while paying rent, payments made to consultants, payments to lawyers or freelancers.
- If your TDS is higher than the actual tax payable, then you can apply for the refund.
- If you are an advance tax payer and if you estimate higher advance tax then you can also apply for IT refund.
- If you forgot to report some investments which offer tax benefits and deductions that you have not declared to the employer while the employer deducts taxes on salary. Then you can also claim for exemption in tax returns.
How to Claim Income Tax Refund?
You can file your income tax refund by form 16 with necessary proof, filing income tax refund with form 16 is the easiest way.
Form 16 is a most important document for IT-Refund. Therefore, you need to understand Form no.16 very carefully. Form 16 has two parts A and B.
Form 16-A Contain mostly your personal details like your name, address, your PAN (permanent account number) you can see how 16-a bellow Form.
Form 16-b contains the information that you need to file your IT-Refund. Here we have a snap of form 16-b.
You can download Form No-16 PDF Here.
How To Trace Income Tax Refund Status?
Now with e-filling Taxpayer can trace (check) their income tax refund status online. Income tax department of India has the online portal where you can verify your “INCOME TAX REFUND STATUS” online in two easy steps.
- By PAN number and Assessment Year
What is PAN?
PAN is the 10 digits alphanumeric number which should be provided by the Income Tax Department of India. If you have no PAN CARD or PAN, then Apply for New PAN and get your PAN number.
What is Assessment Year in Refund Status?
In India, Everyone knows that the financial year starts from 1St April to 31St March of every year. It shows the income between 1St April to 31St March. Suppose the income concerns with the whole year is called an assessment year. Income Between 1St April 2010 to 31St March 2011 then 2010-11 is the assessment year.
You can check Your Income Tax Refund Status Online Here.
If The ITR-V send by you has been received in Central Processing Center (CPC), or it has been filed using digital signature then you can check your ITR-V Receipt Status here.
Refund Reissue Request:
Sometimes, you know that refund application to the income tax has been failed some reason. So, I write about how to apply for refund re-issue.
It is simple as per request to check refund status.
As per above, first, you need to log into an e-filling website.
Then after select my account, and in that select the refund re-issue request.
Now you need to enter your PAN, assessment year, communication reference number and click on VALIDATE option. And choose the payment mode.
The tax payer can update their bank account details about IFSC code.
Now, you select “SUBMIT” to verify your application.