The last date to file an income tax return (ITR) ended on July 31, 2024, and taxpayers are now awaiting refunds for any excess tax paid. According to the latest data from the income tax (I-T) department, over 7.28 crore ITRs were filed by the deadline, a 7.5% increase from the 6.77 crore ITRs filed the previous year (AY 2023-24).
Not all taxpayers have tax refunds due, but those who paid more tax than required are entitled to receive an income tax refund. An income tax refund occurs when the tax department returns the excess amount paid beyond the actual tax due. This excess can come from TDS (tax deducted at source), TCS (tax collected at source), advance tax, or self-assessment tax. The refund amount is determined after considering all deductions and exemptions during the tax assessment.
For instance, if your outstanding tax for FY 2023-24 is ₹5 lakh, but you paid ₹5.6 lakh in TDS and TCS, the tax department will refund ₹60,000 (₹5.6 lakh – ₹5 lakh).
Refund processing begins only after the taxpayer e-verifies the return. Typically, refunds are credited within 4 to 5 weeks from the date of verification. The time period starts from the verification date, not July 31. The department’s current processing times may lead to delays in refunds. Taxpayers should ensure their ITR is e-verified and their bank account is pre-validated for timely refunds.
If a refund is not received within this period, taxpayers should check for any discrepancies in their ITR and look for notifications from the IT department. Refund status can also be checked on the income tax e-filing portal as follows:
- Go to the e-filing portal homepage.
- Enter your user ID and password. If your PAN is not linked with Aadhaar, you will see a message stating your PAN is inoperative.
- Navigate to the e-File tab > Income Tax Returns > View Filed Returns.
- Check the refund status for the desired assessment year and click ‘View Details’ to see the lifecycle of your ITR filed.