Track Your Income Tax Refund

How to track Income Tax Refund:

If any individual or company file their ITR if any refund is filed we can check the refund status online from income tax website. If your refund process has been completed by your officer in charge, you will receive a message notify you of same.

There are two steps for claim income tax refund:-

1. Direct refund through transfer:

Excess paid can be refunded to you by credited to your bank account with ECS transfer. RTGS/NEFT are also used to transfer the tax refund directly into your account, by using your ten digit account number and MICR code, through State Bank of India.

You can also track refund status from Income Tax department website or through NSDL-TIN website by click on the option of status of refund. You will then need to enter your PAN number and the assessment year.

2. By Cheque:

You can track this by speed post service that has been task with delivering it, using the reference no. that the IT department will give you.

Interest payable on late in refund:

There are many cases reported that the tax payer do not get their refund in due time. So don’t panic about that because you will received an interest of 0.5% on your refunded amount for every month that the in case of refund amount is delay. The interest calculation commences from 1st April of the assessment year. If found that the reason for any duration of delay is attributed to you, you will not get any interest for that duration.

Outstanding Taxes setting off refunds:

The case may also arise that if you have some outstanding tax liability to pay. The Tax authorities have the power under section 245 intimation adjust against the refund or part of refund against any tax demanded which to set off your refund amount against outstanding taxes. However, this can only happen after intimation in writing is sent to you, proposing that this is the course of action that will be followed.

              Basically the difference of the actual amounts of money you have paid on taxes verses the amount of money have expected (liable to pay) under Income tax refund. You can save a lot of hard earn money by just declaring your investment and rent if any other permissible deductions like insurance, mutual funds, NSC certificates, post office time duration deposited (minimum 1 year)  certificates, Shares and equity investments tuitions fees of your children, home loan them to make sure you hard earned money stays in your pocket.