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What is the Process to Claim Income Tax Refund?


You have been a law-abiding citizen and dutifully paid your income tax. But what do you do when you realize that the tax you have paid is higher than what was due? Is there a way to claim income tax return? Is the money adjusted against the following year’s tax, or does the Income tax department pay back the money in the same year itself?

The answer is YES. You are eligible for an Income tax refund when the advance tax, self-assessment tax or the TDS amount deducted is higher than your total tax liability. And the refund is processed in the same year, except in cases where the refund amount is Rs.100 or less. In that case, it is adjusted in the following year.

ITR Refund- Three Simple Steps

If you are wondering if this process is tedious and cumbersome, be rest assured that the Income tax department has made the process of claiming your ITR refund simple and easy to handle.

You can follow the simple process listed below to file for your ITR claim.

Step 1: Log on to the Income Tax filing portal, https://www.incometax.gov.in/iec/foportal/

The new portal was launched in June this year, and the Income tax department has provided pre-filled forms to ease the process. Different taxpayers can access the site in various regional languages.

As per the Income Tax Act, every individual who wishes to claim the refund has to file their ITR by 31st July each year. This year the deadline has been extended to 30th September 2021.

You can log in using your PAN card or Aadhar card details.

Additional Read: About the new website?

Step 2: You will need to enter your income details, income from salary, income from interest and other details for the portal to calculate the refund due to you. You are also required to provide pre-validated bank details of the account for the refund. As per an earlier announcement by the Income tax department to disburse the claims electronically into the pre-validated bank accounts, this step is now a crucial one.

The refund amount is computed based on the details entered by you on the site, but please note that this may not be the final amount that will be refunded. The Income tax department will compute the final amount you get after checking and verifying the genuineness of your income tax claim amount.

Step 3: You will receive intimation from the Income tax department under Section 143 A, and the possible responses could be:

  1. You have paid the correct tax amount, and no further tax is due from you

  2. Your calculation does not match the tax computation of the Income tax department, and you are liable to pay more tax (tax demand) against your filing and that your refund request is partially/wholly rejected

  3. Your calculation matches the Income tax department’s computation, and there is indeed a refund due to you for the assessment year

Communication: In the case of e-filed returns, when there is a refund due to you, you will receive written communication by way of an email sent to your registered email address. That email will also mention the amount that is the refund for your ITR claim the year and the refund return reference number, which can be used to track your refund status.

Step 4: Tracking the status of your refund is also very simple. You need to log into the Income tax filing portal and check under ‘Refunds’ under the ‘My Account’ tab.

Additional Read: How to Check Income Tax Refund Status Online

DO NOTE: In case the Income tax department wants to explore more in your case or scrutinize the matter further, they will send you a notice under some other section, and you will not receive communication under Section 143 A as mentioned above


It is now convenient and hassle-free to claim income tax return and can be done with utmost ease on the Income Tax e-filing portal. The entire process can be done electronically, including the money transfer. All it takes is sharing your genuine income details with the Income Tax department, and they will take care of the rest.


ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470.  The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  Investments in securities market are subject to market risks, read all the related documents carefully before investing. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents are solely for informational and educational purpose.

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