ITR refund: With the deadline for filing Income Tax Returns (ITR) on July 31 now passed, many taxpayers are eagerly awaiting their refunds. Here’s what you need to know about when you can expect to see your tax refund in your account. This year, over 7.28 crore returns were filed, marking a 7.5 per cent increase from the previous financial year.
What is a tax refund?
An income tax refund is issued by the Income Tax Department when the amount of tax paid exceeds the actual tax liability. This overpayment can occur through TDS (tax deducted at source), TCS (tax collected at source), advance tax, or self-assessment tax. During the assessment, the department considers all deductions and exemptions to determine the final tax liability. For instance, if your total tax due for the financial year 2023-24 was Rs 5 lakh, but you paid Rs 5.6 lakh in TDS and TCS, the Income Tax Department will refund the excess amount of Rs 60,000.
When will the refund be deposited?
The processing of an income tax refund begins only after the taxpayer has e-verified their return. Typically, it takes 4 to 5 weeks for the refund to be credited to the taxpayer's account from the date of verification, not from the July 31 filing deadline. This year, there have been delays in processing ITRs, which may extend the time required to receive the refund.
If you have filed and e-verified your return, you can expect the refund in 4 to 5 weeks, though it might arrive sooner. However, if there are discrepancies in your return, it could delay the process. In such cases, the Income Tax Department may request you to file an updated return, which will then be scrutinised before the refund is issued.
