Who is eligible for receiving a refund?
Any taxpayer is eligible for an income tax refund if he or she has paid taxes excess of the actual tax payable. Paying extra taxes can happen due to various reasons like:
1. When the employer deducts excess of taxes
This can happen a lot many times when the employer deducts extra taxes from an employee’s funds subject to furnishing documentary proofs pertaining to 80C exemptions. Sometimes the employee is not able to reproduce the investment proofs by or before the deadline resulting in higher tax deductions. The benefit of these investments can be claimed at the time of filing income tax returns and the refund can be claimed.
2. When an employee is being taxed but does not fall under any tax bracket
Sometimes, it may happen that the employee does not fall under any tax bracket at all, yet the taxes are being deducted due to some reason. Under such circumstance, the employee can claim a refund while filing an income tax return.
3. When there is a temporary or permanent addition to income
Sometimes there may be a chance that there is some additional income which may or may be permanent in nature. In this case, the person may fall under a higher tax bracket and is advised by the income-tax officer to pay higher taxes. Such addition can be adjusted by appealing to the authorities. In this case, the person can claim refunds on the additional charged taxes.
How is the refund amount determined?
1. In return of income
The taxpayer can claim a refund for income which the income tax department processes and the person receives information regarding the amount of refund under section 143(1). This claimed refund can be higher or lower or of the exact amount as claimed. Whichever the case is, the taxpayer receives the amount of which he or she is actually eligible.
2. Refund after addition deletion by appeal authorities
Once the appeal authorities delete the additions, the income tax officer can determine the refund due to the taxpayer. This is what the taxpayer is actually eligible to receive.
How to check the refund status?
There are two ways by which the refund status can be claimed:
1. Income tax e-filing official portal
2. NSDL website
The income tax e-filing portal
Step 1: Visit the income tax e-filing portal at https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html
Step 2: log into your account using user id, password, date of birth/ incorporation, ‘Captcha’ and click ‘Login’.