How to check Income Tax Refund Status

The word “refund” catches the attention of almost every other taxpayer like no other word can. A refund is the excess amount of taxes paid than what was the actual tax liability. However, receiving this refund is not an easy task as it sounds. The perfection in filing income tax return plays a crucial role in increasing the chances of income tax refunds getting approved. The Income Tax Department offers an online facility for tracking your Income tax refund status. We can easily check the progress of refund by entering PAN of the taxpayer and the applicable Assessment Year.

Income Tax Refund:
Income Tax Refund is the excess of amount of Income Tax or TDS paid over and above the actual income tax liability. For claiming refund, ITR has to be filed correctly with mentioning of all the data. Only a verified ITR is eligible for receiving refund. 

Steps to check income tax refunds:

1. Through Web Portal-

Income tax refund status can be checked by logging in to the income tax portal. Click on e-file > income tax returns > view filed returns.

Here status of your refund processing will be shown.

2. Through NSDL Portal-

Go to NSDL Portal and then enter PAN, assessment year and Captcha to view refund status.

3. Through 26AS-

Login to traces website by logging in to income tax portal and redirecting to 26AS. After selecting the assessment year, refund status will be shown in one of the options given in the 26AS table.

Responses related to Income tax refund:

• No E-filing has been done for Current AY:

E-filing is mandatory for receiving refunds in your bank account.

• Under processing:

Pending at the end of Income tax department to process your IT return

• Refund issued:

Process of granting refund is completed. Bank account will reflect the amount of refund granted.

• Refund Failure:

Non-prevalidated or wrong bank account number or IFSC number can lead to this status of IT refund. A refund re-issue request has to be made after making necessary changes and pre-validation etc.

• Processed with No Demand No Refund:

If you have not claimed any refund in ITR or no tax payment was pending, then upon processing of return, this status is reflected.

• Case Transferred to Assessing Officer:

It is possible that IT department may ask for certain clarification or documentation from the assesee in order to ensure the authenticity of the claims made. Taxpayer has to contact AO in such cases to resolve the issue.

• Demand determined:

In such cases, taxpayer has to either pay the demand or file his points in regard to such demands as why it should not be payable.

• Rectification Processed and Refund/Demand/No Demand No Refund Determined:

When a rectification request is made after receiving any notice or intimation from department, the status will be shown as above once the rectification is completed and processed.

Conclusion:
Income tax refund is not a taxable receipt as it is mere a refund of excess tax paid. However, if any interest is received on such refund then the same will be taxable. There are many methods to check the status of income tax refund online, but providing correct reply to such refund related intimations is crucial. Generally, it takes around 7 to 120 days, with an average time of 90 days after e-verification of the return. The Income Tax Department will send the refund amount through electronic mode i.e. credit to bank account or through a Refund Cheque.