Online Income Tax Refund

Under sections 237 to 245 of Income Tax (IT) Act, 1961, refund arises only when one has paid a higher amount of tax to the government than the amount which should actually be paid. One can file for income tax refund online from relevant website.

Am I eligible for IT refund?

There are certain cases when one is eligible and can go for IT refund. Some of them are stated below:

  • If the tax paid in advance on the ground of self-assessment is higher than the tax to be paid based on regular assessment.
  • If TDS from salary, dividends, interest on debentures/deposits/, etc is higher than the payable amount based on a regular amount.
  • Sometimes, there is an occurrence of error in assessment process resulting in higher tax calculation. So, when it resolves, tax charged must reduce and one can claim refund.
  • If same income is taxed in India as well as foreign country, with which the Indian government has signed agreement to avoid double taxation.
  • If tax has been paid without considering the investments that offer tax benefits.

How can I get IT refund in India?

One can avail refund by filing the return of IT online. Generally, the date of filing IT return is 31st July unless it is extended.

How much of an amount can be refunded?

To know the amount of tax one will get refunded, calculation of tax payable associated with the payer needs to be calculated first. If one has paid a higher amount than what it should have been submitted, then the difference amount will be refunded by the department.

How is the payment of the IT refund done?

The payment is directly transferred to the account of the claimant or sent in the form of cheque.