SOLVATEXWhat is Income Tax Refund?
A complete guide for salaried, freelancers, professionals, and businesses.
What is Income Tax Refund?
An income tax refund is the excess tax you paid to the Income Tax Department that you are legally entitled to get back.
This usually happens when:
- Your employer deducted higher TDS than required.
- Banks deducted TDS on FD or savings interest even though your income is below taxable limits.
- You paid excess advance tax.
- TCS was collected but your final tax liability is lower.
Who Can Claim a Tax Refund?
If your tax paid is more than your actual liability, you can claim a refund.
Salaried Person: Employer didn’t consider full deductions like 80C, HRA, 80D.
Freelancer/Professional: Clients deduct TDS, but expenses reduce taxable income.
Investor: Bank deducts 10% TDS on FD interest but your income is below exemption limit.
Businessman: Paid advance tax on estimates, actual income was lower.
How to Claim Income Tax Refund Online?
- File your ITR on the e-filing portal within due date.
- Check TDS/TCS in Form 26AS or AIS.
- Calculate final liability after deductions & exemptions.
- If tax paid > actual liability, extra will be refunded.
- Refund is credited directly to your bank after ITR processing.
How to Check Refund Status?
- Login to Income Tax e-filing portal → “View Returns / Forms” → “Refund/Demand Status”.
- Or check refund status on NSDL website.
Important Points to Remember
Provide correct bank details, link PAN with Aadhaar, and keep proofs like Form 16, Form 16A, TDS certificates ready.
- Refund is only for excess tax paid – wrong claims can invite notices.
- Ensure PAN-Aadhaar linking to avoid delays.
FAQs on Income Tax Refund in India
1. When will I get my refund?
Usually within 20–45 days after ITR processing.
2. Is refund taxable?
No, refund isn’t taxable. But interest received on it is taxable.
3. Can refund be adjusted against pending dues?
Yes, the department can adjust your refund against old tax dues.
Final Words
A tax refund is your own money coming back to you. File ITR correctly to ensure you don’t lose it. Every rupee counts!
Pro tip: Take professional help to maximize your refund and avoid mistakes.
Learn How to Claim