How to Get Income Tax Refund (Guide 2023)

As a cautious taxpayer, you don’t want to get behind on your taxes. To stay away from the income tax department’s scrutiny, taxpayer cautiously pays more taxes on their income. As a result, instead of the taxpayer owing any money to the IT Department, the IT Department owes to give a refund to them.

It is a simple process to get a refund from the Income Tax Department. This article sheds light on just the fact of how to get income tax refund easily, eligibility criteria, the maximum amount of refund, etc. keep reading!

How to Claim the Income Tax Refund?

The first thing that any taxpayer must do is to calculate their taxes precisely. For that, you can check out our other article on how to calculate income tax. It will help you to be more precise next time. 

Now, to get a refund on the extra taxes paid through TDS, or advance taxes here is what you need to do.

File the ITR correctly. Yes, to get or claim the income tax refund the taxpayer must file an ITR or income tax return. 

While filing the ITR your advance tax balance should be more than the total tax liability on your income. To check it you can look up form 26AS. 

Or to be more sure about your tax payments, you can also file form 30 and request a review of your paid taxes.

The ITR can be filed online on the e-filing portal and you can track it easily. 

It is also advisable to mention your bank account details (verified) in the ITR form to get the refund directly into your account.

Not everybody is eligible to get a refund. Why? 

Who is Eligible for Income Tax Refund?

To be eligible for receiving a refund on your already paid taxes the following conditions must be checked.

1. Your total tax liability should be less than the total advance tax paid by you in a financial year.
2. Your TDS payment must be more than your tax liability total for the financial year.
3. In case you made any tax-saving investment after paying your taxes, means you can opt for a tax deduction for it in ITR and claim a refund.
4. In the case of the taxes paid in a foreign country, you can claim a refund under DTAA to avoid double taxation.
5. An error made in calculating your taxes made you pay more than the required taxes.

Now that you know how to claim a refund, we will move on to how much money can you get back in form of a refund from the IT Department.

What is the Maximum Tax Refund You Can Get?

A taxpayer can get a refund of 10 lakhs to 50 lakhs or more for a single assessment year. 

• If the amount is up to INR 10 lakhs, the principal commissioner of Income Tax or the Commissioner of income tax has the power to accept or reject the refund claimed by the taxpayer. 

• If the amount is up to INR 50 lakhs, the Principal Chief Commissioner of Income Tax or the Chief Commissioner of income tax has the power to accept or reject the refund claimed by the taxpayer. 

• If the amount is more than INR 50 lakhs, the claim will be addressed by the Central Board of Direct Taxes. 

The taxpayer can claim a refund for the taxes paid up to a period of six years ago, but not more than that. If the IT department finds the claims unsatisfactory they can condone the refund claim within six months of receiving the application.

When Will I Get My Income Tax Refund?

The taxpayer after processing their ITR will receive an intimation on their registered mobile number, email and account on the e-filing portal. The refund will be generated as soon as the bank initiates the payment of the refund after receiving the initiation request from the IT Department.

The refund can take up to 30 to 45 days from the date of processing of the ITR to be transferred to the bank account.

FAQ: How to Get Income Tax Refund

1. How Do I Know if I’m Eligible For Tax Refund?

You can file form 30 to get a reverie of the income tax statement. Apart from this, you can request to issue of intimation to get a comparison of the ITR filed and the data present with the IT Department. 

2. Can Refund be Rejected?

Yes, the refund can be rejected if the IT Department is not satisfied with the information provided in the ITR.

3. What is the Time Limit For Claiming the Refund?

The time limit to claim a refund through filing ITR is 31 July of that assessment year. You can also claim your refunds through belated returns if you missed filing them in record time.

4. When I Can Expect My Tax Refund?

You can expect to receive your income tax refund between 30 to 45 days after ITR processing. If it is taking longer, contact the Centralized Processing Centre through their website and can track the status of the Income Tax Refund.

Conclusion

The process of income tax refund has been simplified. The whole process of filing ITR and tracking it can be done through the e-filing portal. We hope that how to get income tax refund answers the questions you were looking for. 

For more details about the income tax refund head to the recommended section. Still got questions, write them in the comment section.

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