Every year, millions of taxpayers in India file their Income Tax Returns (ITR) hoping to get some money back — the tax refund. But what exactly is this Income tax refund? Why do we get it? And what does TDS have to do with it?
Let’s begin by understanding the basics of income tax and TDS refund in India.
What Is Income Tax Refund?
An income tax refund is the extra amount paid-back from the income tax department if you have paid excess tax during any financial year. Basically, this situation occurs when tax is deducted in advance from your salary or income (such as TDS), but otherwise upon calculating your gross income and filing a return, your final tax liability is less.
The difference between the tax paid and the tax payable becomes your refund.
For example, if ₹50,000 was deducted from your salary as TDS, but your total tax liability is only ₹35,000, you’re eligible for a ₹15,000 refund.
What Is TDS Refund?
TDS stands for Tax Deducted at Source. This is a system where a certain percentage of your income is directly deducted and paid to the government. It applies to salaries, interest income, rent, professional fees, and more.
Since TDS is deducted on estimates and may not always be the exact amount of tax payable, one may claim a TDS refund during income tax filing in case TDS has been over-deducted.
TDS refund is never separate from income tax refund; it means one and the same thing.
When Can You Claim a Tax Refund?
The return must show that your actual tax liability is less than what you’ve already paid (via TDS or advance tax).
You must make sure that you verify your return — either through Aadhaar OTP, EVC, or by sending a signed ITR-V to the Central Processing Centre (CPC), Bengaluru.
Only verified returns are processed.
How to Check Your Refund Status?
Log in with your PAN number and password.
Select the relevant assessment year.
From here, you will get your online ITR filing status. If the refund has been processed, it will show the mode of payment, e.g., bank transfer, and date of refund.
Also, you may check your refund status at the NSDL TIN website (https://tin.tin.nsdl.com/oltas/refund-status-pan.html) using PAN and assessment year.
Common Tax Refund Status Messages and What They Mean
Sometimes the status messages on the portal can be confusing. Let’s simplify what they mean:
- Refund Paid – Your refund has been successfully credited to your bank account.
- Refund Failed – There may be a mismatch in your bank account details.
- Tax Refund Sent to Refund Banker – Tax refund has been sent to the bank (like SBI) for processing.
- Income Tax Refund Returned – Bank account was inactive or closed.
- Not Determined – Return still being processed; wait a little more.
- Refund Expired – Refund cheque not deposited in time (usually happens in offline refunds).
If you get a failure status, you may need to update your bank details on the income tax portal and re-validate them.
How to Check My tax refund has process or not?
If you have a query whether my tax refund is correctly process or not, you can visit official website and then login your account, further can see return status, whether it is processed or not? If processed successfully then an intimation of demand or refund will issue by the department.
What is password of Intimation send by Income tax department
Once you get an Intimation after processing your tax return either on email or after download from your login, you may open it with a password that containing your pan number in small letter and your date of birth. For example – if your PAN is ABCDE000X and date of birth is 01-01-1980 then your password will be “abcde000x01011980”.
How Long Does It Take to Get the Refund?
The Income Tax Department usually processes refunds within 20 to 45 days after your return is verified. However, it could take longer if your return is selected for scrutiny or detailed verification.
Earlier, it used to take several months, but now, with electronic processing and automated systems, refunds are often credited within a few weeks.
You will receive an intimation on your registered email and phone once the refund is processed.
What If You Miss Filing online ITR but Still Want Income Tax Refund?
If you missed the original deadline of ITR, you can still file a belated return before the end of the assessment year and claim your tax refund. However, late filing fees may apply under Section 234F.
Note that you cannot claim a refund after the end of the assessment year. For example, for FY 2023-24 (AY 2024-25), the last date to claim a refund is 31st March 2025.
Is the Refund Taxable?
If you receive interest on delayed refunds from the government (under Section 244A), then only the interest portion is taxable under the head “Income from Other Sources” in the next year ITR.
So, if your refund includes ₹500 interest, that ₹500 is added to your taxable income.
Steps to Revalidate Bank Account for Refund
If your refund failed due to bank issues, you can revalidate your account like this:
- Log in to the e-Filing portal of Income Tax.
- Go to ‘Profile’ → ‘My Bank Account’.
- Add or edit the bank details.
- Click ‘Validate’.
Once validated, go to ‘Refund Reissue Request’ under ‘Services’ and file the request.
You will get updates on your mobile/email once the refund is reissued.
Conclusion on Income Tax refund
Filing income tax returns and tracking your refund are important steps in managing your finances. A tax refund is your right — it means you paid more tax than needed, and the government owes it back to you. Thanks to the new digital systems, tracking and receiving refunds has become easier and faster.
Remember to always file your returns on time, verify your bank details, and keep checking the status if your refund takes longer. If there’s an issue, raise a grievance or contact the Income Tax Department to get help.
In the end, it’s your money — don’t let it go unclaimed.
10 FAQs on Income Tax Refund and TDS Refund
1. What is an income tax refund?
It is the money the government returns to you when you’ve paid more tax than your actual liability. You receive it after filing and verifying your ITR.
2. What is a TDS refund?
TDS refund refers to the return of excess tax deducted at source. It is the same as a regular tax refund, just specifically coming from TDS.
3. How do I check my refund status online?
You can check it on the Income Tax e-Filing portal or the NSDL TIN portal by entering your PAN and assessment year.
4. How long does it take to get a refund after ITR filing?
It usually takes 20–45 days after verifying your return. Some refunds are issued in a few days if everything is correct.
5. Why is my refund delayed?
It could be due to wrong bank details, return under scrutiny, mismatch in TDS data, return still not process by the department or outstanding tax dues.
6. Can I get a refund without filing ITR?
No, you must file and verify your ITR to claim a refund. It cannot be issued automatically.
7. What if my refund fails due to a wrong account number?
You can update and revalidate your bank account on the portal, and then request for a refund reissue.
8. Is refund received from the IT department taxable?
The refund itself is not taxable, but any interest paid on it by the department is taxable under “Income from Other Sources.”
9. Can I get a refund if I file a belated return?
Yes, you can still claim a refund if you file a belated return before the end of the assessment year.
10. How do I raise a complaint if refund is not received?
Log in to the income tax e-Filing portal, go to ‘Grievances’, and file a complaint. You can also call the CPC helpline.
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