What is a Tax Refund?

A tax refund is a process to get the tax refunds whenever any taxpayer has paid extra taxes beyond their actual liabilities. Tax refund can be issued against different taxes, which are self-assessment tax, Tax deducted at source, advanced tax, etc. 

The tax refund is calculated when you are filing an Income tax return. You will be informed of the eligible refund through SMS or Email. The total amount of the tax refund is credited to the one account with a proper sequence number according to section 143(1) of the Income Tax Act, 1961.   

Who is Eligible for a Tax Refund?

The following points given below are eligible for the Tax refund. 

• If the tax paid is more than the actual assessed year tax. 
• If there is more TDS from your salary, interests on securities, dividends, and other sources, which are more than the regular tax payable. 
• If the error in the tax application is corrected, then you are eligible for a Tax refund. 
• If the income is taxed in the foreign country and the residence country, then you are eligible to get the DTAA benefits. 
• If you have any unreported income that provides tax deductions and benefits. 

What is the Due Date to Claim a Tax Refund? 

An Individual taxpayer can claim the income tax return within 120 months after the year of the relevant assessment year. Here are some of the conditions that apply to the tax refund claims. 

• An individual can claim the tax refunds within 6 assessment years. CBDT will not accept any tax refunds older than this. 
• You can also claim a delayed tax refund after the verification. 
• The total amount claimed in an assessment year should not be more than 50 lakhs INR.