Press ESC to close

How to Claim Income Tax Refund during ITR Filing Online?

ITR Filing Online

Do you want to claim an Income Tax Refund but are confused about how to do it? Don’t Worry! This blog is your answer. You can claim your Income Tax Refund via ITR filing Online. In this blog, we will provide you with a comprehensive guide to explain everything about claiming an income tax refund easily. You can save your time & also make sure that you receive the overpaid taxes on time, whether you are an individual taxpayer or a business owner.

But before moving ahead with claiming a tax refund, let’s talk about what an income tax refund is. Let’s have a quick glimpse.

Income Tax Refund is the refund amount that the Income Tax Department has issued. Taxpayers will get a Refund from the IT Department if the amount you paid as taxes (either via TDS/ TCS or Advance Tax, or Self Assessment Tax) is more than that of actual tax liability. It will proceed after Income Tax Return Filing & its e-verification. 

Who Can Claim Tax Refunds During ITR Filing Online?

In order to claim a tax refund, you have to file Income Tax Return. You must fulfil its specific eligibility criteria to get a Refund. You can claim a Refund in some circumstances, which are as given below-

  • In case the tax that you have paid in advance as per the self-assessment is more than the total tax liability on the basis of regular assessment.
  • If the TDS (Tax Deducted at Sources) from your salary, dividends, interest on securities & debentures, or other sources is more than the total tax payables as per the regular assessment.
  • When you have been taxed more due to an error in a regular assessment process & the error will resolve later. It may reduce the amount of your total tax liability.
  • When you have been taxed for the same income in India as well as in a foreign country (that has an agreement with the Government of India in order to avoid double taxation).
  • If you have such investments that offer tax benefits & deductions but you have not declared them yet.
  • If, after considering the taxes you have paid & deductions you are eligible for, you find out that the amount of tax paid is negative.

These are the situations under which taxpayers are eligible for any Income Tax Refund. So, while claiming the income tax refund, just make sure to follow the given eligibility criteria.

Available Deductions That You Can Claim

You can claim your tax refund easily by filing your income tax return. Here, in this section of the blog, we will discuss the deductions & exemptions that you can claim as an Income Tax Refund. Deductions applicable for Income Tax Refund are as follows-

Deductions Available Under Section 80

You can claim the deduction for several investments & term insurance as an Income Tax Refund of up to Rs. 1.5 Lakhs under section 80C. The government has allowed you to claim the deduction for the amount that you contribute to such investments & term insurance. These investments include-

  • PPF (Public Provident Fund)
  • Life Insurance Premiums
  • NSC (National Saving Certificate)
  • FDs (Tax Saving Fixed Deposits)
  • NPS (National Pension Scheme)
  • ELSS (Equity Linked Saving Schemes)
  • Tuition Fees of Children
  • ULIPs (Unit-Linked Insurance Plans)

You can also claim other deductions as Refund under section 80 of Income Tax Act while Income Tax Return Filing. The major deductions are on-

  • Medical Expenses & Insurance Premiums (u/s 80D)
  • Interest on Home Loan (u/s 80C)
  • Loan for Higher Studies (u/s 80E)
  • Charitable Contribution (u/s 80G)
  • Treatment of Disabled Dependents (u/s 80DD), etc.

There are some more deductions available under section 80 of Income Tax Act that you can claim as Refund during ITR Filing.

Other Exemptions to Claim as Refund During ITR Filing Online

  • HRA (House Rent Allowance): HRA has been provided by some employers to their employees having rented accommodation. However if you don’t live in any rented accommodation but get HRA then it will be taxable.
  • LTA (Leave Travel Allowance): The salaried employees also get the LTA in order to cover the travel expenses incurred while on leave for you & your family. If you travel within India, then only you can claim the Refund of this exemption.
  • Standard Deduction: As a salaried taxpayer, you can claim the Refund for standard deduction while filing ITR. The limit of standard deduction is Rs. 50,000/- for old tax regime whereas Rs. 75,000/- (as per the Union Budget 2024) for the new tax regime.

Income Tax Refund in Special Cases

  • Suppose a taxpayer is not able to claim Income Tax Refund due to any specific reasons including death, insolvency, incapacity or any other cause. In that case, their legal representative, trustee, or guardian can claim the Refund on the behalf of taxpayer.

How to Claim Income Tax Refund?

You can claim the income tax refund while filing your ITR by following the given steps-

File Income Tax Return

First of all, you have to file your income tax return in order to claim your tax refund. Just make sure that you have filed your ITR before its due date so that you can avoid any penalties. In today’s digital age ITR Filing online becomes very easy & fast because of the online platforms.

How to file ITR?

  • Gather Documents: You have to collect all the essential documents including Form 16, Form 26AS, bank statements & investment proofs.
  • Log into e-filing Portal: Then you have to log into the e-filing portal of the IT Department using your credentials.
  • Choose Right ITR: Select the appropriate ITR as per your income source ^ category, along with the right AY.
  • Enter details: You have to enter the details of your income, deductions, and tax payments precisely. 
  • Verification & Submission: Cross-check your details, verify the information, and submit the return, after which you will receive an acknowledgement.

Verify Your ITR after ITR Filing

After the successful submission of ITR, you need to verify it within 120 days of filing. You can verify your return electronically via Aadhaar OTP, EVC, i.e. Electronic Verification Code, or using DSC, i.e. Digital Signature Certificate. Its offline verification will be done by sending a signed copy of ITR-V to CPC, i.e. Centralized Processing Center, Bengaluru.

Track Your Refund

After the successful filing & verification of your ITR, you can check the status of your tax refund online by using the e-filing portal of Income Tax Department or via official website of NSDL i.e. National Securities Depository Limited.

Rectify Errors (if any)

The Income Tax Department may raise a query in case of any discrepancies or errors in your ITR. It will be better to respond to that query quickly & also provide the requisite documentation so that there will be no delay in processing your Refund.

Get Your Refund

After your tax refund is processed and approved by the IT Department, your Refund will get credited to your account directly. Just make sure that your bank account details are correct & updated in your ITR to avoid any issues.

For a successful claim of tax refund & to maximize your Refund, it will be better to seek the professional guidance of ITR Filing consultants having expertise in the latest rules & regulations related to tax laws.

Interest on Tax Refund after ITR Filing Online

  • If you have file Income Tax Return before the due date but you did not get the Refund on time, then the Income Tax Department must have to pay an interest on your tax refund. The interest will be computed from the date on which the tax was paid till the date on which the Refund was made.
  • But if it is found that the reason of the delay is from your side, then you will not be liable for any interest.
  • However, the interest has been paid by the Income Tax Department only if the amount of Refund is 10% or more of the total tax paid by you.

Key Considerations for Tax Refund after ITR Filing Online

In order to claim an Income Tax Refund, you must remember some of the important points. In this section of the blog, we will discuss the important points that you should keep in mind. Here are the key considerations-

  • Early ITR Filing Online

You should file your Income Tax Return before the due date. Early filing of Income Tax Return will help in speed up the process of tax refund.

  • Double Check Details

It will be better to make sure that all the details filled in your ITR including PAN, Bank Account Details, & information of tax payment will be precise. If there are any incorrect details furnished in your ITR, then you will not get your tax refund.

  • Respond quickly

If there is any query raise by the Income Tax Department regarding your filed ITR, then you should respond to it quickly in order to avoid any delays in tax refund.

  • Maintain all the records

You should have to maintain all the documents & proofs related to tax prepared for the reference & verification.

  • Amount of Excess Tax Paid

Just make sure that the amount of the tax paid by you must be reflected in Form 26AC accurately.

  • Refund Amount

The amount of Refund that you claim must be less than Rs. 50 Lakhs for a single assessment year.

  • Time period of Claiming Refund

In case, if six successive assessment years have been completed the Income Tax Department will not considered the tax refund claimed by you.

Why Legal Pillers is best for ITR Filing Online?

In today’s competitive world, Legal Pillers stands as the premier choice of individuals as well as businesses to file Income Tax Refunds & get the maximum Refund applicable to you. Our dedicated team of professionals has the expertise in tax laws and we also make sure that you will get the maximum possible refunds by understanding each & every aspects of your finances. You can simply find us by searching “CA Near Me for ITR Filing”. Here are the reasons-

  • Maximize Tax Refunds

Legal Pillers will help you in maximizing your tax refunds. Our professional team of experts will tell you about all the possible ways to reduce your tax liability.

  • Minimize Stress

With Legal Pillers, you will have peace of mind. Our team is there to handle everything and reduces your stress, you just stay relaxed.

  • Secure and Reliable

Sometimes, people think that online platforms are not secure. Legal Pillers has a completely secure & reliable online platform, as your privacy is our priority. You can stay calm, making sure that your sensitive information is in safe hands.

  • Save Time and Effort

Our dedicated team of professionals has exceptional expertise in filing ITR. Our top-notch services will save you time and effort so that you can focus on growing your business.

Final Words

It is a systematic process to claim an Income Tax Refund. It includes the Income Tax Return Filing, its verification & also making sure that all the details are correct. You can claim your Income Tax Refund easily & efficiently and can also avoid common errors by following the above-mentioned straightforward steps. Just remember to file ITR online on time, keep your information updated and respond to queries quickly in order to avoid any delays in Tax refund. You can also seek the expert guidance of ITR Filing consultants like Legal Pillers. Legal Pillers has a team of professionals possessing expertise in Tax Laws & regulations. So, what are you waiting for? Choose us as your trusted partner to make sure about a smooth & hassle-free refund process. 

Other Related Blogs

Leave a Reply

Your email address will not be published. Required fields are marked *

Ask An Expert

  • This field is for validation purposes and should be left unchanged.