How to Check ITR Refund Status Online on the Portal
Each year, a taxpayer must file their income tax return for the relevant financial year by a prescribed deadline. If taxpayers have paid more tax than they actually owe, they are entitled to receive a refund from the Central Board of Direct Taxes (CBDT), known as an ITR refund.
Typically, the Income Tax Department issues these refunds before the end of the financial year. However, for the financial year 2024–25, there may be a delay in processing these refunds.
As per the latest information from the tax department, the refund process may be completed by the end of December. If the refund is delayed by the Income Tax Department, they are liable to pay interest on the amount owed to the taxpayer.
Read Also: ITR: Things to Consider When Filing Your Return for 1st Time
What Interest Will You Receive If Your Income Tax Refund Is Delayed?
- As per Income Tax Section 244A, a taxpayer can claim up to 6% interest on the refund if there is a delay by the tax department.
- As per Income Tax Section 437(1), an interest rate of 0.5% per month is mandatorily payable on the total refund amount.
- However, certain conditions determine whether you are eligible to receive this interest. For example, interest is not payable if the ITR has been filed incorrectly or contains inaccurate information. Additionally, taxpayers who make errors in their ITR forms will not be eligible to receive interest.
- If a refund is due, the interest payout is calculated from the relevant date as prescribed under the Income Tax Act.
Define an Income Tax Refund?
When you file your income tax return, the department verifies all applicable deductions and exemptions to determine your tax liability. Any excess amount paid by the taxpayer before filing the return becomes eligible for a refund. There is a standard process for claiming a refund, which involves verifying your details online. Once all the information is correct and verified by the Central Board of Direct Taxes (CBDT), it usually takes about 4 to 5 weeks for the refund amount to be credited to your bank account.
Easy Steps to Check Your Tax Refund Status Online
- Step 1: Visit the e-Filing portal.
- Step 2: Enter your user ID and password provided by the department.
- Please Note: After entering your details, a pop-up message may appear stating that your PAN is inactive if you are an individual user and your PAN is not linked to your Aadhaar.
- Step 3: After logging in, navigate to the e-File tab, select "Income Tax Returns," and click on "View Filed Returns."
- Step 4: You can now check the refund status for the selected Assessment Year (AY). Click on "View Details" to track your filed Income Tax Returns (ITR). Important statuses related to your ITR filing will be displayed:
Status 1: Refund has been issued
Status 2: Refund has been partially adjusted
Status 3: Refund has failed
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Note: If your PAN is inactive or not linked to your Aadhaar, your refund may fail, and a warning message will be displayed.
A fair statement by the Chairman of the Central Board of Direct Taxes, Mr Ravi Agrawal, shared with PTI, stated that the Income Tax Department is currently reviewing certain cases where taxpayers may have incorrectly claimed deductions. This process is causing delays in issuing tax refunds. However, he also mentioned that taxpayers who are owed legitimate refunds can expect to receive them by the end of December.