Filing income tax is a yearly ritual that requires attention to detail, prior planning, and timely submission. If all the details are in place, one can track the income tax refund status.
Individuals’ who paid a higher amount of tax than the due tax liability are eligible to receive an IT refund. This usually happens in cases where advance tax, TDS, or self-assessment tax is paid.
One might wonder how long it takes to receive an income tax refund. This article talks about 5 things that one should know about the status of income tax return.
File Income Tax Return Ahead of Time
The best way to ensure that tax returns can be credited in timely manner when applicants file income tax return on time. This is because the income tax department will be able to process the return early before a deluge of claims filed as the deadline approaches.
There might be instances where the deadline for filing tax returns may be extended but it is best not to take a chance. Recently, the government announced that individuals filing income tax returns after the deadline will be fined with a maximum amount of Rs 10,000 along with the interest on the tax liability.
The last date for submission of income tax return verification (ITR-V) form for the financial year 2017-18 is July 31, 2018, for individuals and September 30, 2018, for businesses. The income earned from April 1, 2017 to March 31, 2018 will be calculated is taxable for this financial period.
Income Tax Return can be Filed Only Online
From the year 2015, the income tax department announced that all claims for income tax return can be filed online only. Therefore, e-fling tax returns are mandatory and failure to do within the stipulated time period so would result in the rejection of the applicant’s claim for tax return.
Some of the details that applicants must keep at hand while filling up the form include Adhaar card number, bank account details, and PAN card. Form 16 from the employer, investment details, home loan (if applicable), and income tax e-filing password are other necessary details that one must be readily available while filing income tax return claim.
Cross Check Information before Filing IT Return Online
It is essential that applicants’ cross-check information before filing the IT return form online. Some of the details that must be cross-checked include:
- Ensure that the appropriate income tax return form is selected
- Ensure that the bank details of the applicant are correct
- TDS amount as mentioned in Form 16A or Form 16
- Self-assessment tax with form 26AS
- Advance tax with form 26AS
Often, applicants select the wrong tax return form, as there are different forms available, which will lead to rejection of the claim. Additionally, the IT department encourages applicants to verify the tax credit statement or Form 26AS, so that the return can be processed quickly since a mistake can delay the income tax refund status.
There are instances where a source of income might not be reported, missed out, or deductions might not be availed. In such cases, errors in the computation can be corrected and applicants can file a revised return.
The tax return can be rectified on the online portal. The applicant has to log into their account and go to the “Rectification” option categorized in the “E-File” drop-down menu and applicants can track the new income tax refund status.
ITR-V Should be sent in a Timely Manner
It is advisable that applicants should file their ITR-V form within 120 days and track income tax refund status online. While e-fling this form, a digital signature is not necessary.
Once the form is sent to the IT department, the authenticity will be verified and then the return will be processed. However, failing to do the ITR-V should be sent in a timely manner if the applicant wants to receive the tax return quickly.
Applicants must note that failure to meet the deadline can make the applicant ineligible to receive the tax return.
How to Check Income Tax Refund Status
When an applicant’s ITR has been processed then intimation on the income tax return status for the claim will be sent from the IT department. The intimation may also include information on interest or tax to be paid by the applicant.
The following steps can be used to check income tax refund status:
- Visit the IT department website: incometaxindiadotgovdotin.
- Log into website using user id, password, date of birth or date of incorporation, and captcha.
- Go to the “My Accounts” tab and click on “Refund/Demand Status”.
- The application status along with related details will be displayed on the screen.
The income tax refund status related details that will be displayed include assessment year, status, reason why refund failed (if applicable), and mode of payment.
Now that filing income tax has become an online process, applicants can easily check income tax refund status without any hassles. These tips will help applicants receive the tax refund within no time.