According to the new rule of the Government of India, a person whose annual income is less than ₹12 lakh or approximate ₹12 lakh is exempt from paying income tax.
An income tax refund is the money the Income Tax Department returns to you when you have paid more tax than required during a financial year.
When do you get an income tax refund?
As per the new rules of the Government of India, there are certain criteria that determine who is eligible and who is not eligible. These criteria help identify whether a person qualifies under the rule or not.
You may be eligible for a refund if:
- TDS deducted by employer/bank is more than your actual tax liability
- You paid advance tax or self-assessment tax extra
- You claimed deductions/exemptions (80C, 80D, HRA, etc.) while filing ITR
- Excess tax deducted on FD interest, salary, or other income
How is the refund processed?
To help a taxpayer claim income tax, the Government has laid down a specific procedure. It is very important for every taxpayer to follow this procedure properly. By following these steps, a taxpayer can file an Income Tax Return (ITR) and claim a refund of excess tax paid.
- You file your Income Tax Return (ITR)
- You e-verify the ITR
- Income Tax Department processes the return
- Refund is credited to your bank account (via ECS)
How to check Income Tax Refund status?
After filing the Income Tax Return, if a taxpayer wants to know when the tax refund will be received, they can check the refund status online through the official Income Tax portal.
You can check refund status online:
- Go to Income Tax e-Filing portal
- Login using PAN
- Go to View Filed Returns
- Click on the relevant Assessment Year
- Refund status will be shown (Issued / Processing / Failed)
Common refund status meanings:
Sometimes, while filling in their details, a taxpayer may make certain mistakes, due to which they do not receive their refund amount. In some cases, a taxpayer also needs to follow up by checking the refund status to know what is happening with the refund.
Below are the common income tax refund statuses and their meanings:
- Refund Issued – The refund has been successfully credited to the taxpayer’s bank account.
- Refund Failed – The refund could not be credited due to incorrect bank details or other issues.
- Return Processed – The Income Tax Return has been processed, and the refund will be issued soon.
- ITR Under Processing – The return is still being reviewed by the Income Tax Department.
- No Demand, No Refund – There is no additional tax payable and no refund due.
- Refund Adjusted Against Demand – The refund has been adjusted against outstanding tax dues from previous years.
How long does it take?
- Usually 7–45 days after e-verification
- Sometimes longer if verification or mismatch exists
Important tips:
Before doing anything, or before filling out any online form, a person should carefully ensure that all details are filled in correctly, without making any mistakes.
- Ensure correct bank account & IFSC
- Complete e-verification
- PAN must be linked with Aadhaar
- Check email/SMS from Income Tax Department
