It so happens that sometimes the tax deducted from the assessee’s income exceeds the actual tax liability. In order to ensure that the assessee does not pay excess tax, the concept of Income Tax Refund was introduced. However, there are certain conditions that need to be met to be able to get an Income Tax Refund. 

This article will give you an understanding of what a Tax Refund is and when it can be availed. 

Budget 2025 Update

The deadline for taxpayers to file updated income tax returns has been extended from 2 years to 4 years from the end of the relevant assessment year. This will make compliance with tax provisions voluntary by giving more time for tax filing and rectifying tax returns with ease, consequently ensuring a clean and efficient taxing process. The additional tax has to be paid while filing the ITR-U. The amount of additional tax that has to be paid is as follows:

ITR-U filed within	Additional Tax
12 months from the end of the relevant AY	25% of additional tax (tax + interest)
24 months from the end of the relevant AY	50% of additional tax (tax + interest)
36 months from the end of the relevant AY	60% of additional tax (tax + interest)
48 months from the end of the relevant AY	70% of additional tax (tax + interest)

What Is An Income Tax Refund?

The Income Tax Department in India collects tax in advance through TDS, TCS and Advance Tax provisions. In certain cases, the tax deducted or advance tax paid exceeds the taxpayer’s actual tax liability. This excess amount is returned to the taxpayer, and this provision is called an Income Tax Refund.

Filing an income tax return within the specific due dates is necessary for eligible taxpayers to obtain a refund, if any. However, a belated return can be filed within 31st December of the assessment year with applicable interest and penalty, if the taxpayer misses the actual due date and the refund can be claimed. 

ITR Filing Due Date For FY 2024-25 (AY 2025-26)

The due date for filing ITR for AY 2025-26 is as follows:

What Happens If You File Your ITR Late?

In case the taxpayer files a Belated Return, then the following shall be applicable:

• A late fee of Rs. 5,000. However, if the total income is less than Rs. 5,00,000 then a late fee of Rs. 1,000.
• Interest under sections 234A, 234B and 234C.
• The taxpayer will not be allowed to carry forward any losses.
• Delayed Refund. 
• Disallowance of deductions as late tax return must be filed only under the New Tax Regime.

Can You Claim A Tax Refund If You File ITR Late?

Yes, an Income Tax Refund can be claimed even if you file your ITR late but this applies only for belated filing. Hence, a taxpayer can avail a refund only if the ITR is filed before 31st December of the relevant assessment year. 

However, an ITR can still be filed after 31st December of the relevant assessment year. Such a return is known as an Updated Return. But in case the assessee files an updated return, then the benefit of income tax refund will not be applicable to such assessee and the refund if any shall be lapsed. 

Conclusion

Timely filing of ITR is crucial for claiming a tax refund without delays or penalties. While refunds can be claimed for belated returns, they cannot be claimed for updated returns. To maximize benefits and avoid complications, taxpayers should file their returns on time and stay informed about tax deadlines. By reading this article, you should be able to understand about income tax refunds and when it can be claimed.