Refund of Excess Tax

Last updated on Jun 7, 2022

If the Assessing Officer is satisfied that the amount of tax paid by you for any assessment year exceeds the amount with which you should actually be charged, then you are entitled to a refund of the excess.(( Section 237, Income Tax Act, 1961)) Any excess tax you pay can be claimed as a refund.

How to get your refund

If you want to claim any refund from the Income Tax Department, you can do so only if you file your ITR. There is no separate procedure as such in order to claim an income tax refund due to you. You can claim tax refund by simply filing the return of income(( Section 239, Income Tax Act, 1961)) and verification in the usual manner. The Income Tax Department will then confirm your ITR verification, including details of the refund amount. Your refund claim will either be accepted or rejected.

The excess tax will generally be refunded by crediting it in your bank account through ECS transfer. Sometimes, you may owe some payment to the Income Tax Department. In this case, the income tax authorities may set off the refund amount against the sum payable by you. This is done after giving you a written intimation of the action proposed to be taken.(( Section 245, Income Tax Act, 1961))

Delay in payment of refund

The Income Tax Department has been making efforts to settle refund claims at the earliest.​​ After applying for a refund, you can check your refund status. If the Assessing Officer does not grant the refund within three months after the month in which the refund is claimed, then the government shall pay you simple interest at 15% per annum on the refund amount.(( Section 243, Income Tax Act, 1961))

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

As you found this post useful...

Follow us on social media!

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Leave a Reply

Your email address will not be published.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

Have a question you want to ask our legal experts?

Related Resources

What is Income Tax?

Income tax is a tax levied by the Government of India on the income of every person. The Income Tax Act, 1961 deals with it.

Income Tax Returns or Forms (ITR)

An Income Tax Return (ITR) is a form through which the details of income earned and taxes paid are communicated to the Income Tax Department.

Calculating Taxable Income

For calculating income tax, Income Tax Department taxes you based on your income from different categories.

Deductions Reduced from Tax

A deduction is an expense that is subtracted from an individual’s gross total income to reduce the amount which is going to be taxed.

Time Limit for filing Tax Returns

This post talks about time limit for filing income tax returns and where exceptions are allowed by tax authorities.

Income exempt from Income Tax

Exemptions are those incomes which are exempt from tax, i.e. do not form a part of the total income calculated for taxation purposes.