Income Tax Refund
In AY 2024-25, 7,28,80,318 ITRs were filed until 31 July 2024, which is 7.5% more than the previous year. As we experience an increase in ITRs filed, we believe there must be a stagnant increase in ITR refunds. If you are also liable for an income tax refund, read this article before filing your ITR.
Eligibility Criteria to get Income Tax Refund
The following are the eligibility criteria to claim an income tax return refund
If TDS from your salary, interest on securities or debentures, dividends or other sources of income is greater than tax payable.
If the advance tax paid under self-assessment exceeds the actual tax liability paid under the conventional assessment.
More tax paid due to erroneous assessment process
Tax paid without taking into account eligible deductions or exemptions
Tax paid without reporting investments that offer tax benefits and deductions
Income is taxed in a foreign country (with which the Government of India has an agreement to avoid double taxation)
How to Check Income Tax Refund Status?
Following are the different methods of checking Income Tax return refund status:
1. Through the e-filing portal of Income Tax
2. Via NSDL Portal
3. Via TRACES
Explaining the Meaning of Various
Income Tax Refund Status
Following are the different types of income tax refund status and their meanings:
- 1. No E-filing has been done for Current AY
- 2. Under Processing
- 3. Refund Issued
- 4. Processed with No Demand No Refund
- 5. Refund Failure
- 6. Transferred to Assessing Officer
- 7. Demand Determined
- 8. Rectification Processed Refund Determined
- 9. Rectification Processed Demand Determined
- 10. Rectification Processed No Demand No Refund
Status
No E-filing has been done for Current AY
Meaning
This status means that your ITR was not filed
How to resolve it?
Verify the assessment year you selected for checking your refund status and confirm that you chose the right assessment year. If the problem persists, contact your CA who has filed your ITR.
Status
Under Processing
Meaning
This ITR refund status means that your income tax return refund is yet to be processed by the Income Tax Department.
When your income tax refund status shows “Under Processing”, it means that the Income Tax Department has received your Income Tax Return (ITR), but your refund is still in progress and hasn’t been processed yet.
How to resolve it?
Re-check after a month
Status
Refund Issued
Meaning
This means that the Income Tax Department has processed your refund. You will receive it either via Cheque or internet transfer.
Status
Processed with No Demand No Refund
Meaning
No refund to be processed
OR
You may file an ITR with a refund, but the IT department will need to correct your calculations. This scenario arises when TDS data is incomplete or improperly processed
How to resolve it?
In the case where data differs with the Income Tax Department, they may send you an intimation u/s 143(1). You can file a rectification to support the ITR refund claim.
Status
Refund Failure
Meaning
It means that bank account details such as account number or IFSC code submitted to the Income Tax department are incorrect, which is why the refund could not be successfully processed.
How to resolve it?
Log on to incometax.gov.in, re-enter the bank account number and required details, and validate them.
Once you validate your bank account, apply for the refund once again.
Refund
Refund Failure
Meaning
This status means that the IT department requires more information/clarification regarding the ITR you have filed. An Assessing Officer will contact you about it.
How to resolve it?
Contact the Jurisdiction Assessing Officer for your region.
Refund
Demand Determined
This status means that a refund request has been rejected, and the IT department has found that you owe them unpaid taxes.
In such cases, you might have received a notice from the income tax department, stating the outstanding amount of tax with its reason.
How to resolve it?
To resolve this issue, follow these steps:
Review the Notice
Carefully read the notice from the Income Tax Department, which will detail the outstanding amount and the reason for the demand. Understand the discrepancies or issues that have led to this demand.
Cross-check Your Filing Records
Verify the information you submitted while filing your return. Ensure that all the details are accurate and aligned with your actual tax liabilities.
Read the notice that the IT department has sent thoroughly and understand where the problem is. Also, cross-check with your filing e-filing records to verify the information you submitted while filing the return was accurate.
Solution #1
If you conclude in your finding that the return you have was erroneous, pay the tax amount demanded by the IT department within the given period.
Solution #2
If you conclude in your finding that the IT department has made a mistake, file a rectification supporting your refund claim.
Refund
Rectification Processed Refund Determined
Meaning
This status is shown only to those taxpayers who have filed rectification. This status means that the IT department has either entirely or partially accepted.
As per the rectification, the Income Tax department has calculated the refund amount and the same is credited (or in process) to your bank account.
Refund
Rectification Processed Demand Determined
Meaning
This status is reflected only for taxpayers who have filed for rectification. It means that the IT department has either completely or partially accepted the request.
However, the Income Tax Department has maintained that you owe them taxes. The amount of due taxes will be reflected in the intimation, which must be paid within 30 days of receipt.
Refund
Rectification Processed No Demand No Refund
This status is reflected only to taxpayers who have received an intimation to submit a rectification. It means that the IT department has either completely or partially accepted the rectified return.
As per the rectification, the Income Tax Department has concluded that you neither owe taxes nor qualify for a refund.