INCOME TAX REFUND
                     G K Kedia & Co.
CHARTERED ACCOUNTANTS 
FIRM
INCOME TAX REFUND
The Term “Income tax” refers to the type of 
tax that the government imposed on income 
earned by the person (defined in the Income 
Tax Act, 1961) during the previous year & 
such income is to be assessed in the 
Assessment year.
As per section 2 (31) of the Income Tax Act, 1961 ” person” Includes:
● An individual, ● An association of 
● A Hindu persons or a body of 
individuals, whether 
undivided family,
incorporated or not,
● A company, ● A local authority, and
● A firm, ● Every artificial 
juridical person.
As per section 3 of the Income Tax Act, 1961″Previous year” is 
defined.
For the purposes of this Act, “Previous 
year” means the financial year 
immediately preceding the assessment 
year:
Provided that, in the case of a business 
or profession newly set up, or a source of 
income newly coming into existence, in 
the said financial year, the previous year 
shall be the period beginning with the 
date of setting up of the business or 
profession or, as the case may be, the 
date on which the source of income 
newly comes into existence and ending 
with the said financial year.
As per section 2(9) of the Income Tax Act, 1961 “Assessment year” 
is defined.
“Assessment 
year” is the 
period (from April 
1 to March 31) 
during which you 
are taxed on the 
income you 
received in a 
given financial 
year.
Provision relating How to calculate 
to Refund income tax refund
●Calculate the total amount of tax paid 
Income tax return, often known as IT for the year (by any means, i.e. 
refund, occurs when an Assessee’s tax advance tax or tax deducted /collected 
paid exceeds the amount is obligated 
to pay. It is computed in accordance at source or self-assessment tax or 
with various tax rules and sections of payment of tax on regular 
the Income Tax Act of 1961. assessment).
Sections 237 to section 245 deal with ●Calculate the actual tax payable at the 
the provisions relating to the refund of year-end
excess tax paid by the taxpayer. ●Tax Refund shall be (A) – (B).
How to claim a 
refund?
Income Tax refund can be claimed only through filing a return of income 
within the time limit prescribed under section 139 of the Income Tax Act, 
1961, In which you provide all the details of income, tax deducted at 
source, and along with tax paid for the previous year.
It is mandatory to file ITR online only to get the benefit of a refund in 
case of excess payment of tax with the effect from 01 Sep 2019 
specified in the Finance (No. 2) Act, 2019.
Applicability of Interest on refund
According to section 244A of the Act, interest on delayed refunds is as:
● Refund arising out of TDS/ TCS/ Advance ● In any other case:
Tax/ Self-Assessment tax u/s 140A: Interest is calculated at 
Interest is calculated at the rate of 0.5% 
per month or part of the month. In case the rate of 0.5% per 
return is filed on time, interest is month or part of the 
calculated from the 1st of April to the month from the date of 
date refund is granted, But if the return 
is not filed on time, interest is calculated payment of tax to the 
from the date of filing an online return to date of grant of the 
the date refund is granted. It must be refund.
considered that if the refund amounting 
to less than 10% of the tax under 
assessment, then it is not entitled to any 
interest.
                          Status of Refund:
The Status of Refund/ Demand can be checked by following the below-mentioned methods:
● Through Income Tax Portal:
○ Login to e-Filing website with the User ID, Password, Date of Birth / Date of Incorporation, 
and Captcha. Go to My Account and click on “Refund / Demand Status”.
○ Below details will be displayed.
○ Assessment Year Status Reason (For Refund Failure if any) Mode of Payment is 
displayed.
○ Taxpayers can now view Refund/ Demand Status.
●  Through NSDL Website:
○ Visit the TIN NSDL website for refund tracking
○ Scroll down to enter your PAN and select the assessment year. Enter the captcha code 
and click on “Proceed.”
○ Next, you will be redirected to a page that will display a message depending on your 
income tax refund status on NSDL.
CONTACT
Head Office : Delhi
812, Naurang House 21,
Kasturba Gandhi Marg, Connaught Place,
New Delhi- 110001, India
+91-11-46259900
1800110099 (India Toll Free)
+91-8826897200
[email protected]