Home > Help Center > FAQs on Tax Refund

Income Tax Refund FAQs for AY 2019-20

Explains various provisions, scenarios, how long would it takes, factors that influence your Income Tax Refund!

Income Tax Refund FAQs

1.What is a tax refund ?

Tax refund is the amount, which the government gives back to a taxpayer who has paid excess taxes.

2.How to claim tax refund ?

You need to file an income tax return to claim your tax refund. The amount of refund receivable is computed and shown in the tax return.

3.In which mode tax payer will receive the refund ?

Income tax department (ITD) will made refund either through electronic mode i.e. direct credit to account or through Refund Cheque. Tax payers are required to enter correct Account number and IFSC code along with complete address details including PIN code at the time of filing of Return.

Refunds sent through cheques are dispatched to the address as mentioned by the tax payers through Speed Post.

4.How can check my refund status ?

To check the refund status PAN and assessment year are mandatory

To check the refund status please refer the link IT Refund Status

5.How is the interest on tax refund get calculated ?

If the amount of refund is more than 10% of the total tax payable for that particular year then tax payer entitled to receive simple interest on tax refund.

Interest is computed @ 0.5 per cent per month on the amount of refund. The interest is computed from the beginning of the next financial year till the date of grant of the refund.

6.Is the refund taxable ?

The amount of refund is not taxable.

But interest received on tax refund is taxable. The rate of tax would be as per your applicable slab rate. You may include it in the taxable income of the year in which such refund is received.

7.Refund Status shows that Refund was processed through Direct Credit mode which had failed ?

It means that Refund for credit to account maintained with SBI had failed. Possible reasons may be

  1. Account details are incorrect
  2. Account had been closed
  3. Operations in the Account had been stopped /restricted /On Hold
  4. The Account may be Fixed Deposit or Loan of PPF account.
  5. The Account may be NRI account
  6. The Account holder may be deceased.
8.How long will it take to get the Tax Refund deposited in my Bank Account ?

While time entirely depends on Income Tax Department internal process, generally it may take anywhere 7 days to 120 days, with an average time of 90 days after you have successfully e-verified your return.

Further, few factors that would dectate your refund time

  1. Are you filing for the 1st time ever ?
  2. Are you filing promptly every year where you are required to ?
  3. Do you have past notices pending to be processed ?
  4. Have you paid taxes for the previous tax years ?
  5. Is your PAN / Aadhaar de-activated?

Good news is that now you can track your it return, and refund easily, follow below links on this page

9.Refund Status shows that Refund had returned ?

The taxpayer may give correct bank details and raise refund reissue at e-filing portal/Assessing Officer.

Paper refund- Tax payer may give correct details about address and raise refund issue request at e-filing portal/Assessing Officer.

In any mode refund is failed, tax payer can submit the refund reissue request.

To submit the refund reissue request please refer the link IT Refund Reissue

10.Refund Status shows that Refund had been adjusted against outstanding demand of previous year. What does that mean ?

This means that Refund for the current year had been adjusted against outstanding demand of previous Assessment year either in-part or in-full. Tax payer can check the outstanding demand details in ITD login.

To check the outstanding demands and other notices please refer the link Outstanding Demands

Useful Links related to Tax Refund

  1. Know your Income Tax Return Status whether ITD has accepted your IT Return and also to know whether you have e-verified your return or not ?
  2. Track your Income Tax Refund Status whether ITD has dispatched the check / funds into your bank account ?
  3. Get to know IT Refund related information using Income Tax Refund Guide

Our Tax Services

Online Income Tax Filing Time: ~7 mins
  • Comprehensive & Accurate > No limits.
  • Highly Secure > Peace of mind.
  • Maximum Deductions > Save on Taxes.
  • No more visits to Tax Consultants > Save Time & Money.
  • Real-time Tax Calculation
  • Available in both Web Browser & Mobile App

Start Now

GST Accounting Software Price: Rs.1499 after 70% Off in India  refer pricing for other countries such as India, Australia, Malaysia, Nepal, Pakistan, Singapore, Sri Lanka, & UK

Easiest GST ready Accounting software

  • GST Compliant Invoicing
  • Online – Highly available
  • Quick Onboarding – Import your data from legacy
  • Personalization – Highly customized Invoicing
  • Drafts > Estimates > POs > Delivery Challans > Invoices > CR/DR Notes > RCs & All.
  • Barcode scanner Integration
  • Amazon, Flipkart Imports
  • Individual, or Bulk Payments – just a Click away
  • Multiple users can Book / Bill at the same time
  • Quick Invoicing, Auto Delivery, & Reminders
  • Multi-Channel GST returns preparation
  • Customized for Regular and Composition
  • AI Data Insights
  • AI Prioritization
  • AI Alerts
  • Expenses & Purchases
  • Real Time P & L
  • Barcode Scanner, e-Way Bill Integration
  • Excellent User Experience
  • Easy to understand language
  • Artificial Intelligence enablement
  • above all, Count on our Outstanding Client Service

Start Now
Expert CA Services Price: Rs.499 onwards

GST
  • Affordable Tax Services for Businesses, Associations, Individuals
  • GST Registration
  • GST Return Filing
  • GST Accounting
  • GST Consultation
  • Notice Handling
Income Tax
  • Income Tax Return Filing for Businesses, Associations, Individuals
  • Tax Savings
  • TDS Preparation
  • General Tax Compliance
  • Investment Advisory
  • Capital Gains Consultation
  • Tax Planning
  • Notice Handling
Virtual Accounting
  • Complete Accounting for Businesses, Associations, Individuals
  • Compliance & Accounting Portal Access for easy monitoring
  • Accounting Advisory
  • Tax Savings
  • GST, Income Tax, TDS, General Tax Compliance
  • Business Planning

Start Now

How to get help from EZTax.in