Last Updated on May 25, 2022 by Neera Bhardwaj
To make it easier for taxpayers, the Income Tax Department of India has presented the option of tracking online the status of your income tax refund. The topic of income tax refund arises in case there is a discrepancy between the actual taxable amount and the total amount of tax you have paid. The Income Tax Act of 1961 covers this matter under Sections 237 to 245.
Here is a piece for you to explore, covering details of income tax refund and how you can check your income tax refund status 2020-2021. It also covers the meaning of numerous types of income statuses and the probable reasons as to why your income tax return is delayed.
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Income tax refund
In case your paid tax amount is beyond the actual payable tax for a particular financial year, you become eligible for an income tax refund. The IT Department of India initiates this refund. This excess deduction can be due to TDS or advance tax, TCS, etc.
How to check your income tax refund status 2020-21?
You can check your income tax refund status 2020-21 on two platforms – the new portal of the Income Tax Department or from the TIN NSDL website.
For checking status on the new income tax portal:
- Visit the official website of the Income Tax Department of India (www.incometax.gov.in)
- Enter your user ID and password. Your PAN is your user ID.
- You will find the option of ‘income tax returns’ within the ‘e-file’ option.
- Now select the option ‘view filed returns’.
- Here you will get the option of checking your latest income tax refund filed.
For checking status on the TIN NSDL portal:
- Visit the TIN NSDL website
- Enter your PAN card details, along with the Assessment Year and given Captcha Code
- You will see an option named ‘Proceed’. Click on it.
- Your income tax refund status 2020-21 will be visible on the screen.
Requesting for refund
You can issue a refund request by following these simple steps
- Go to the ‘e-filing’ section of the Income Tax India portal.
- Now input your credentials, like the user ID and password, along with your birth date, captcha code, and likewise.
- Choose the option ‘Service Request,’ which you will find under the ‘My Account’ section.
- Within the category named ‘Request Type,’ you will find the ‘New Request’ option.
- Choose the option named ‘Refund Reissue’. This page holds all information and acknowledgement for each financial year for which you have submitted your income tax.
- Look for the ‘Response’ section for your required year, and click submit.
- Fill in the required bank details like your account number, branch name, IFSC Code, and likewise.
- Click on the submit option, and your refunded amount will reflect in your bank account in some days.
Process of return payment
Your income tax refund payment is made in two ways. The refund can be paid directly to your bank account via NECS or RTGS or via the cheque facility. You have to make sure that you have clearly mentioned your bank account details for the former.
Income tax refund statuses and their meaning
While filing for a refund, you will come across its various statuses. The status can show ‘Not Determined,’ ‘Demand Determined’, and other similar terms. Here is a list of a few terms, along with their meanings:
- Not Determined: This status means your refundable amount is yet to be processed.
- Refund Paid: This status means that the refundable amount is deposited in your bank.
- Refund Unpaid: This status means that the refundable amount is not yet delivered to your bank.
- Demand Determined: It indicates that your refund demand is not approved.
- No demand, no refund: This status indicates that the correct tax amount is deducted, and you are not eligible for any refund.
- Refund Failure: This status means that your refund was processed and sent to your account, but the amount has not been credited, probably due to incorrect bank details.
Possible reasons why your refund is delayed
If your income tax refund is delayed, here are a few probable reasons for it.
- You have provided incorrect bank details.
- You have not verified your income tax refund after filing it.
- You filed your income tax refund after the last date. In this case, your refund will get pushed back accordingly.
- You have outstanding tax payments.
- Your refund is revised due to some clerical mistakes.
- You have opted for offline verification, which is slower than the online mode.
- You have put in the wrong information. In this case, the income tax department will issue a notice and ask for clarifications.
When your return is delayed, you should review your filed return and ensure that the details you have filed are correct. You should also cross-check if you have opted for the correct form.
Anyone who has paid income tax amounting to over the actual payable tax is eligible for a refund. You should claim this refund within a year from the assessment year-end because delaying it will also delay your refund sanction. You must keep in mind that to be eligible for a refund, your refund amount should not exceed Rs. 50 lakh for one assessment year. Similarly, if six assessment years are completed successively, you won’t be considered for any refunds. Contact your tax advisor/CA for professional guidance on taxes and returns.