I-T refunds: Top-9 FAQs by taxpayers

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The I-T department has said that its refunds for FY21 is 42% higher than FY20. But taxpayers often complain that they have not received refunds despite following the due process.

Here we take a look at the FAQs by taxpayers:

1.When is a taxpayer eligible for refund?

If the Income Tax deductions in a particular year has been more than that is payable, the IT department returns the excess money to the taxpayer.

2. How is the refund paid?

The refund is paid to the bank account of the taxpayer.

3. How can a taxpayer check the refund status?

A taxpayer can check the status of refund online. He should visit the e-filing portal. He should key in PAN, the relevant assessment year and the captcha image.

4. If I do not get my refund, can I get in touch with any official of the Income Tax to plead my case?

No, there is no provision to meet any officer of the Income Tax department to plead one’s case.

5. What are the routes through which I can bring my case to the notice of I-T department?

A taxpayer can raise the refund service request in e-filing portal. He can click on ‘My Account’ menu and click ‘Service Request’ link. Then he can select the ‘Request Type’ as ‘New Request’ and select the ‘Request Category’ as ‘Refund Reissue’ and click Submit

6. Is there any other way?

One can also write to the department via a link (https://bit.ly/2YgCyk3) for any queries/concerns related to the processing of their ITRs, refunds or any other related issue.

7. Will the IT department pay me any interest on the refunded amount?

If excess tax is paid to the government, the I-T department pays interest on the excess amount. Under section 244A(1)(a) of the Income Tax Act, an assessee is entitled to receive interest on refund out of any tax collected at source, tax deducted at source or advance tax paid from the 1st day of April of the assessment year to the date on which the refund is granted. A simple interest of monthly rate of 0.5% is applicable.

8. What should a taxpayer do in case of discrepancy in calculation of interest amount?

If there is any discrepancy in the calculation of interest payable by the I-T department, a taxpayer can raise an online request for rectification by logging in to his e-filing account.

9. How does the IT department decide on the refunds?

Early filing of ITR can lead to quick refunds. The I-T department is supposed to select cases for refund on chronology. If the return itself is delayed, processing of return and issue of refund, if any, will be delayed too.