Income Tax Refund
The Income-tax refund arises when you pay the tax amount more than your liability tax amount. The tax may be in different forms like it may be TDS, advanced tax, and self-assessment tax. And you can check for an estimated tax refund and then claim for this tax amount by filing your income tax return.
You have to verify it within 120 days of filing it. Keep one thing in your mind that your income tax return is verified electronically through the Aadhar OTP, EVC generated through a bank account, or the OTP will be generated from net-banking. You can also choose another option of checking it physically by sending the signed acknowledgment to CPC, Bangalore.
For checking your tax return estimator you can use the tax calculator and on the behalf of that, you can apply for a tax refund.
What is a Tax Refund?
To get a tax refund there is no doubt to check it within 120days from filing the ITR. Even if you verify it soon, then the department also starts the process to verify your refund. And once the process of tax return starts you will get the income tax refund amount soon in your bank account.
If you want to check the process for your refund tax amount then you can check it online. You have to follow some steps and you see the process:
- Access the TIN NSDL refund page.
- Enter your PAN card number, assessment year, and the captcha code(that will show on the side of the text box). After that click on ‘Submit’.
- Now, you can see the refund status on your display screen.
By following just 3 steps you can easily see your tax refund status.
Eligibility for tax return
This is the main question about returning tax. If you are the one who paid the tax amount in a financial year more than the real tax amount then you are eligible for applying the return tax.
Many times it happens that the return amount is more than that the refund amount you apply for in your income tax return. Now, don’t be confused about this amount because this amount is nothing rather it is the amount of interest on the real refund amount. And this interest amount is paid by the income tax department in the case when your return amount is higher than 10% of the tax paid.
According to section 244A of the income tax act, 1961, it deals with the interest on the tax refund. It says that the interest rate 0.5% on the refund amount per month. This interest rate and the amount will be computed from the 1st of April until the refund amount is not processed. And this provides that the refund amount is made due to excess advance tax or due to TDS.
Now, you can understand that how you will get the return tax amount if you pay it more than the real tax amount. You can calculate yourself by using the tax return calculator online.