Income Tax Refund

When Income Tax paid is more than Income Tax payable, then the amount paid in excess is known as Income Tax refund. This excess payment is refunded by the Income Tax Department after processing of Income Tax Return.

In the process of income tax refund, there is no separate procedure as such in order to claim an income tax refund due to you. You can claim a tax refund by simply filing the return of income in the usual manner. A taxpayer has a time limit of 120 days from the date of return filing to verify his return. If verification of return itself is delayed, processing of return and issue of refund too will be delayed. Department may not pay you all the refunds due to you. If at all you have taxes due for any of the previous years and a refund due to you in another year, the income tax department may adjust the refund accordingly.