When is a taxpayer eligible to receive a refund?An income tax refund is due to a taxpayer if he has paid taxes higher when compared to his actual tax liability. There are various reasons which could lead to this kind of a scenario. Some of these have been enumerated below :
- The employer generally deducts taxes after taking into consideration various documentary proofs provided to him by an employee pertaining to say 80C investments etc. However, there are instances where an employee is not able to furnish proof for few such investments before the end of a particular financial year and accordingly the employer goes ahead with a higher deduction. However, benefit of such investment can be claimed by the employee while filing his return of income and therefore claim a refund of the higher taxes paid;
- Certain individuals may not fall within the taxable bracket at all i.e. their income would be less than Rs 2.5 lakhs. Hence, they would not have to pay any taxes. Yet, taxes would have got deducted on their income. This being so, they can claim a refund of the excess taxes deducted;
- Taxpayers may be called upon to pay additional taxes by their income-tax officer following certain additions made to their income during income tax proceedings. Such additions may be deleted by appeal authorities. Accordingly, the taxpayer will be refunded the taxes he would have paid.
How much of refund is due to a taxpayer?
Refund claimed in the return of income
Refund due after deletion of additions by appeal authorities
How to check for refund status?
- The income tax e-filing portal or
- The NSDL website