10 common mistakes for not getting timely income tax refundIncome Tax Refund:
- I have filed income tax return and claimed income tax refund, but till now I have not received my refund. How do I know about my refund status?
Refund will be delivered only after processing of income tax return. To check status of refund claim, login to income tax website Go to “My Account” -> “ My Return/ Form Status”
- As per the intimation order, the processing has resulted in a refund but the Net refund payable is Nil/ Reduced
This is due to refund getting adjusted against the outstanding demand, the details of which are available in the intimation order. If you need a copy of the Order u/s 143/ 154, please contact- CPC – Customer service (18004252229) or file online request for reissue of intimation.
- I have claimed refund, but My Refund status shows “No demand no refund” – What does this mean?
This is due to refund getting adjusted against the old outstanding demand, the details of which are available in the intimation order. If you need a copy of the Order u/s 143/ 154, please contact- CPC – Customer service (18004252229) or file online request for reissue of intimation.
- As per the intimation order, the processing has resulted in refund which has already been adjusted or paid towards the outstanding demand, which is not the correct demand as per my records. How to get the adjusted refund?
If the demand pertains to demand raised by the A.O: If the demand pertains to demand raised by the A.O, please contact the Jurisdictional Assessing Officer, after due verification by the A.O, he will issue the adjusted refund amount for the Assessment year for which the demand is rectified.
If the demand pertains to demand raised by the CPC: If the demand is uploaded by CPC, please file a revised return if the original return filed within the due date, else file a rectification return after correcting the data.
- In the intimation order there is a refund issued by CPC but I have not received the refund?
- My Refund Status is “Refund Unpaid” – What does this mean?
Refund could not be paid mainly because of two reasons
- Address provided by is changed or wrong, hence cheque was undelivered.
- The Bank account details ie Account Number, IFSC Code ets provided in the income tax return is wrong or bank account is closed, hence, refund was not processed.
You can find out reason for “Refund Unpaid” by visiting https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
Once you have identified the reason, you can request for reissue of refund by providing correct bank account or address details.
- My Refund Status is “Demand determined” – What does this mean?
The tax demand may arise on account of many simple reasons. Say for example, while filing the return you would have wrongly / not fed the right information.
First and for most thing, you have to ascertain the reason for raising demand. You will get the Information from Intimation received u/s 143(1) of Income tax Act. If you have not received intimation u/s 143(1) you can visit Income Tax E-Filing Website and request for re-sending of Intimation u/s 143(1).
- My Refund Status is “Rectification processed demand determined” – What does this mean?
You might have filed online application for rectification u/s 154 of income tax act after ascertaining the reason for “Refund Unpaid” and “Demand determined”
Your rectification application might have completely rejected or partially accepted by the income tax department. You will get the Information from Intimation received u/s 154 of Income tax Act. If you have not received intimation u/s 154 you can visit Income Tax E-Filing Website and request for re-sending of Intimation u/s 143(1)/154.
- I have received a refund failure communication from CPC, what need to be done?
Login in the Income Tax e-Filing website and go to ‘My Account’ → ‘Refund Re-issue request’. Select the mode of re-receiving the refund: ECS or Cheque, Provide the Bank Account number (if changed) and Provide Address details.
- I am legal heir of the assessee, how to apply for refund reissue?
Please send your request to CPC and also get the detail verified by your A.O. To know your A.O Go to Services tab -> Know your Jurisdictional A.O
- I have closed my Bank Account and I want to change the Bank Account number which I mentioned in income tax return?
You can change bank account by filing a revised return if the original return filed within the due date, else you have to wait for your return to get processed and upon refund failure, submit refund re-issue request.
To change bank account, login in the Income Tax e-Filing website and go to ‘My Account’ → ‘Refund re-issue request’. Select the mode through which you wish to receive the refund- ECS or Cheque. Enter the new Bank Account Number and provide new address if require and submit your request.
- I have shifted my residence and I want to change address which I mentioned in income tax return and to get refund deliver to new residence address?
You can change communication address by filing a revised return if the original return filed within the due date, else you have to wait for your return to get processed and upon refund failure, submit refund re-issue request.
To change communication address, login in the Income Tax e-Filing website and go to ‘My Account’ → ‘Refund re-issue request’. Select the mode through which you wish to receive the refund- ECS or Cheque. Enter the new address and new Bank Account if required and submit your request.
- My Refund status shows “ Contact Jurisdictional Assessing Officer”
If you observe the Income Tax Refund status as Contact Jurisdictional Assessing Officer, it means that CPC (Centralized Processing Cell) has transferred your file to your local Income tax Officer in your area. In this case, you should contact the Income Tax Officer appointed at your nearest Income Tax Department and enquire the status of your Income Tax Refund.
- I have filed income tax return and claimed income tax refund. Will I get income tax refund by cheque or through direct deposit in my bank account?
The income tax return forms specifically require you to mention your preferred choice for receiving refund i.e. by cheque or by ECS.
Presently all the income tax refund for the amount below Rs. 50,000/- are directly credited to the bank account. For refund exceeding Rs. 50,000/-, the income tax department issues physical cheques for the refund.
However. the income tax department is in the process of implementing the system of direct credit to the bank account for all the refunds without any limit in immediate future.
- Am I eligible for interest on my income tax refund?
Yes you are eligible for an interest on the refund payable to you. Interest is calculated @0.5% per month or 6% per year from the first day of the assessment year until the date when the refund is paid to you.
However, interest is payable only when the amount of refund due is more than 10% of the tax payable by tax payer.
- Income tax department (CPC) has adjusted my refund against old demand. However, the Demand entries communicated by ITD CPC in my case are erroneous. Whom to contact to clarify the correct position of demand?
These demands have been intimated by the Jurisdictional Assessing Officer to the CPC and accordingly the refund has been adjusted by the CPC. You are advised to contact the jurisdictional Assessing Officer with all the documentary evidences to get the mistake rectified. The adjusted refund can be issued only by the Assessing Officer after verification of demand and taxes for the demand year. Do not approach the CPC for the same.
- Whom should I contact for further income tax refund related queries?
If you need any query related to processing of income tax return or refund, you may contact- CPC – Customer service (1800 425 2229).
Before making a call to the CPC on 1800 425 2229 to address any query, please ensure that the following data are handy:
– PAN of the tax payer
– Date of Birth/Incorporation of the tax payer
– Communication Number mentioned on the CPC generated document/mail/intimation received by the tax payer
If the above are not readily available, the call will not be successful. Also, in case the query is not resolved immediately, a ticket number can be requested for and on the basis of which the subsequent follow up can be made.
- Can I claim income tax refund of earlier years of which income tax return is not filed
One can file income tax return for last two years and claim a refund if any due for that year. In case he misses to file a tax return within the time limit prescribed for filing belated return, he has no option to claim a refund.
However, circular No 9/2015 dt 9-6-2015, allow the tax payer to make an application and claim income tax refund due up to last 6 assessment year.
As per above circular, the condonation application for claiming a refund can be made within 6 years from the end of the assessment year for which such application is made. A condonation application should be disposed of within 6 months from the end of the month in which the application is received.
Application for condonation of refund claim can be made if refund claim is
– Below Rs. 10.00 Lakhs to Principal Commissioner/Commissioner of Income Tax
– Rs. 10.00 Lakhs to below Rs. 50.00 Lakh to Principal Chief Commissioner/Chief Commissioner of Income Tax
– Above Rs. 50.00 Lakhs to CBDT
The above application will be accepted only if refund claim is correct, genuine and also that the case is of genuine hardship on merit.
A belated application of refund claim can be admitted for condonation provided following conditions are fulfilled
- The income of the assessee is not assessable in the hands of any other person under any of the provisions of the Act.
- No interest will be admissible on belated claim of refunds.
- The refund has arisen as a result of excess TDS, TCS, excess advance or self assessment tax paid as per the provisions of the Act.