income tax

Income Tax in India: Guide, IT Returns, E-filling Process 2020

Tax Planning

Income tax in India can be categorized in Direct tax and Indirect Taxes.

Taxes can be categorized according to their nature, aim and method of taxation.

Some economists differentiate direct taxes from indirect taxes based on the shifting of the ultimate burden of taxation. Thus, it can be said that a direct tax is a tax, the burden of which  is borne by the same person on whom it is levied. On the other hand, an indirect tax is a tax which is initially imposed on and paid by one individual, but the burden of which is passed on to another individual who ultimately pays the tax.

Direct and Indirect taxes can also be classified based on the income expenditure on which a tax is imposed. A direct tax is levied on the income and property of a person. For example, income tax, corporation tax, property tax, wealth tax, etc. An indirect tax is levied on the expenditure. Examples include Excise duty, sales tax, customs duties, etc.
Taxes can be categorized according to their nature, aim and method of taxation.

Types of Direct Taxes in India

  • Corporate Tax

A Corporate Tax is a levy placed on a firm’s net profit by the government. The money collected from these taxes is used for a nation’s source of income. Such taxes can be imposed at a national level as well as on a state or local level.

  •  Income Tax

An income tax is a tax imposed by governments on income generated by businesses and individuals within their jurisdiction. These taxes are used to fund public services and are an important source of revenue for the government. They’re use to pay for government obligations and provide goods for citizens.

  • Capital gains

This type of tax is levied on the sale of a property or money received through a short-term/long-term investment.

  • Securities transaction tax

This type of tax is levied upon the price of the share and securities traded on the Indian Stock Exchange.

  • Prerequisite Tax

These taxes are levied on the perks and benefits provided by a company to its employees.

Indirect Tax

Currently, there is only one indirect tax levied by the government of India. This is called the GST or the Goods and Services Tax. GST is a consumption tax that is levied on the supply of services and goods in India.

BASICS OF INCOME TAX

Are you going to file your income tax returns for the first time? Then do have a look at some of the basic aspects of income tax stated below:

  • Defining the previous year– The Previous/Financial year or your tax year is the 12 month period beginning on 1st April and ending on 31st March of the next year. So, it means that your tax year closes on 31st March and a new tax year starts on the 1st of April.
  • Assessment year– Assessment year is a common term in regards to tax filing. It is the current year in which you are going to assess and file your return for the previous year.
  • Understanding your salary– When you start a job, reach out to your HR department for your salary details/tax statement. You will be provided with an idea about the major components of your salary and how much tax would be exempted from your salary.

Incomes on which you pay Tax

  • Income from Salary
  • Income from House Property
  • Income from Capital Gains
  • Income from Business or Profession
  • Income from other sources such as income from bank deposits, family pension, etc.

Income Tax Department

The Income Tax Department is a government agency that undertakes the responsibility of the direct collection of tax in India. The operations of the department are handled by the Central Board for Direct Taxes (CBDT). The official website of the department provides various details for the public such as international taxation, tax law, rules, organizational setup, etc.

Income Tax Rules

The Income Tax Rules were created in 1962 to help in the application and enforcement of the law constituted in the Income Tax Act. The Income Tax Rules can only be read in concurrence with the Income Tax Act.

Income Tax Forms

Income tax forms are the official government documents that you need to fill out when you pay your taxes. Usually, the more complex your finances are the more tax you need to fill out. Each state and city create its own tax forms.

What is Form 15G and 15H?

Form 15G and Form 15H are the forms you can submit if you want to prevent TDS deduction on your income. Some banks allow you to fill these forms online through the bank’s website. Form 15H is for senior citizens, who are 60 years or older and Form 15G for is for everyone else. Both forms are valid for one financial year.

Conditions needed to fulfill to fill Form 15G:

  • Only Indian Residents can apply.
  • The applicant should be less than 60 years old.
  • The applicant should be anindividual,HUF, trust or any other assessee but not a company.
  • Tax calculated on the applicant’s total income is nil.
  • The total interest income for the year is less than the basic exemption limit of that year.

Conditions needed to fulfill to fill Form 15H:

  • The applicant should be an Indian resident.
  • The applicant should be a senior citizen or should be turning 60 during the year you will submit the form
  • Tax calculated on the applicant’s total income is nil.

What is Form 16?

Form 16 is issued by an employer and contains all the information needed to prepare and file your income tax return. Employers must issue it every year on or before 15th June, immediately after the end of the financial year in which the tax is deducted. Form 16 has two parts- Part A and Part B

Part A of Form 16:

This part can be downloaded by the employer through the TRACES portal (https://www.tdscpc.gov.in/app/login.xhtml)

Some of the components of Part A are:

  • Name and address of the employer
  • TAN and PAN of the employer
  • PAN of the employee
  • Summary of that tax deducted and deposited quarterly, which is certified by the employer.

Part B of Form 16:

It is an annexure to part A. If you change your job in one financial year, then it is for you to decide if you want Part B of the form from both the employers or from the previous employer. Some of its components are:

  • Detailed breakup of salary
  • Detailed breakup under exempted allowances under section 10
  • Deductions allowed under the income tax act

Specific fields for such deductions are as follows:

  1. Deductions for the life insurance premium paid, the contribution to PPF, etc., under section 80C
  2. Deductions for contributions to pension funds under section 80CCC
  3. Deductions for the employee’s contribution to a pension scheme under section 80CCD(1)
  4. Deductions for the taxpayer’s self contribution to a notified pension scheme under section 80CCD(1B)
  5. Deductions for the employer’s contribution to a pension scheme under section 80CCD(2)
  6. Deductions for a health insurance premium paid under section 80D
  7. Deductions for an interest paid on loan taken for higher education under section 80E
  8. Deductions for donations made under section 80G
  9. Deductions for interest income on savings account under section 80TTA
  • Reliefs under section 89

Who should pay Income Tax in India?

The amount of tax to be paid depends upon the age of the individual and the amount of income he or she earns. The list of entities who are supposed to pay Income Tax in India are:

  • Artificial Judicial Persons
  • Corporate firms
  • Association of Persons (AOPs)
  • Hindu Undivided Families (HUFs)
  • Companies
  • Local Authorities
  • Body of Individuals (BOIs)

Income Tax Collection

The Department of Revenue of the Ministry of Finance, the Income Tax Department are responsible for monitoring the collection of Income Tax, Expenditure Tax and various other financial acts passed every year in the Union Budget.

Income Tax is collected in three chief ways:

  • Voluntary payment by the taxpayers into designated banks, like advance tax and self-assessment tax.
  • TDS(Taxes Deducted at Source) which is deducted from the monthly salary.
  • TCS (Taxes Collected at Source)

Income Tax Calculator

Income tax can be calculated manually or by using an online income tax calculator. The income tax rate applicable to you depends upon the tax slab you fall in. For a salaried individual, income from salary includes the basic income, House Rent Allowance, Transport Allowance, along with any Special allowance if available. Certain components of salary are exempted such as Leave Travel Allowance, reimbursement of telephone bills, etc. An individual can claim tax exemption on House Rent Allowance if he/she resides in a rented house.

How to calculate Income Tax with an example

  • Note down all your income- your salary, rental income, capital gains, interest income or profits from your business or profession.
  • Remove income that is exempted under law.
  • Claim all the deductions applicable under every source of income. For example, claim Rs 30,000 from salary income, claim municipal taxes from rental income, etc.
  • Claim exemptions that are applicable under every head of income. For example, the amount reinvested in another property can be claimed as an exemption from capital gains income, etc.
  • Claim applicable deductions from your total income. For example, the 80 deductions like 80C, 80D, 80TTA, etc.
  • Now you will arrive at your taxable income. Select the tax slab category you fall under and accordingly arrive at your income tax amount payable.

 Online Income Tax Payment

A taxpayer can pay the income tax online by using the e-payment facility. To pay tax online, the individual should have a net-banking account with an authorized bank. The Permanent Account Number (PAN) or Tax Deduction and Collection Number (TAN) needs to be provided for validation purpose.

Important Dates to Remember when Paying Income Tax

The important dates an individual should remember while paying the income tax for the fiscal year 2019-20 and 2020-21 are listed below:

Important Due Dates The task that should be completed
Before January 31 Individuals should submit their proof of investment
Before March 31 It is the deadline before which any investments under Section 80C of the Income Tax Act, 1961 must be made
Before 31 July The due date for filing the income tax return
Between October and November Tax returns must be verified by this time

What are the different income tax slabs?

Income tax is levied on individual taxpayers based on a slab system where different tax slabs are prescribed for different rate scales and these tax rates keep on increasing with an increase in the income slab.

These tax slabs changes with every budget.

There are three categories of individual taxpayers:

  • Individuals (below 60 years of age) include residents as well as non-residents.
  • Resident Senior citizens (60 years and above but below 80 years of age)
  • Resident Super Senior citizens (above 80 years of age)

Income Tax Slab for FY 2020-21

The government has made a major change in the tax structure of the present budget. The corporate tax rate has been reduced to a level of 15% for new companies and 22% for existing companies. Due to this, the corporate tax rates in India are, as of now, the lowest in the world.

To provide relief to the individual taxpayers and to simplify the Income-Tax law, the Finance Minister has proposed a new personal tax regime, where the income tax rates will be reduced for the individual taxpayers.

The proposed changes in tax slabs are listed in the following table:

Taxable Income Slab (Rs) Existing Tax Rates New Tax Rates
0-2.5 lakh Exempt Exempt
2.5-5 lakh 5% 5%
5-7.5 lakh 20% 10%
7.5-10 lakh 20% 15%
10-12.5 lakh 30% 20%
12.5-15 lakh 30% 25%
Above 15 lakh 30% 30%

In this new tax regime, the considerable tax benefit will accrue to a taxpayer depending upon the exemptions and deductions claimed by him. The Finance Minister has stated that the old tax regime with its higher tax rates will continue to exist and this new tax regime will be optional for the taxpayers. An individual who is already availing more deductions and exemption under the Income Tax act may choose to avail them and continue to pay tax in the old regime.

The old tax regime will include all the rebates and exemptions that a taxpayer could use to reduce the overall tax payment. The Finance Minister has further stated that this new tax regime does not include around 70 of the exemptions that were there in the old one.

Therefore, it can be stated that in this new tax regime, one can pay less amount of tax but they cannot avail the 70 exemptions provided in the old tax regime.

Income tax slab for individual taxpayers (Resident individuals and Non-Resident Indians) and HUF (less than 60 years old)

Income Tax Slab Tax Rate
Up to Rs 2.5 lakh Nil
Between Rs 2.5 lakh to Rs 5 lakh 5%
Between Rs 5 lakh to Rs 10 lakh 20%
Over Rs 10 lakh 30%

 

Income Range Surcharge
Between Rs 50 lakh and Rs 1 crore 10% of income tax
Above Rs 1 crore 15% of income tax

Health and education cess: 4% on tax computed inclusive of the surcharge

Income tax slab for individual taxpayers (Senior citizens) between 60 and 80 years of age

Income Tax Slab Tax Rate
Up to Rs 3 lakh Nil
Between Rs 3 lakh to Rs 5 lakh 5%
Between Rs 5 lakh to Rs 10 lakh 20%
Above 10 lakh 30%

 

Income Range Surcharge
Between Rs 50 lakh and Rs 1 crore 10% of income tax
Above Rs 1 crore 15% of income tax

Health and education cess: 4% on tax computed inclusive of the surcharge

 

Income tax slabs for individual taxpayers (Super Senior citizens) above 80 years of age

Income Tax Slab Tax Rate
Up to Rs 5 lakh Nil
Between Rs 5 lakh to Rs 10 lakh 20%
Above Rs 10 lakh 30%

 

Income Range Surcharge
Between Rs 50 lakh and Rs 1 crore 10% of income tax
Above Rs 1 crore 15% of income tax

Health and education cess: 4% on tax computed inclusive of the surcharge

Income Tax Deductions allowed to Salaried Individuals

Income tax deductions offer plenty of financial opportunities for salaried individuals. Some the major deductions and allowances available to reduce tax liabilities are listed below:

  • Exemption of House Rent Allowance (HRA): If you are living in a rented house, you will have the benefit of HRA allowance. This could be totally or partially exempted from the income tax. You can claim the least of the following as HRA exemption:

▪ Total HRA received from your employer.

▪ Rent paid less than 10% (Basic salary + DA)

▪ 40% salary (Basic + DA) for non-metros and 50% salary (Basic + DA for metros)

  • Standard Deduction: While presenting the Union Budget, the Indian Finance Minister has announced a standard deduction amounting to Rs 50,000 for the salaried individuals. This has come in the place of the transport allowance (Rs 19,200) and medical reimbursement (Rs 15,000).
  • Leave Travel Allowance (LTA): The Income Tax law provides for an LTA exemption to the salaried class, restricted to travel expenses incurred during their leaves. LTA can be claimed twice in a block for four years.

Restrictions applicable to LTA:

  1. LTA covers only domestic travels and not international.
  2. The mode of travel should be either railway or air travel or public transport.
  • Mobile reimbursement: The income tax law allows an employee to claim a tax-free reimbursement of the mobile or telephone expenses incurred at residence. They can claim it from the actual amount paid or amount provided in the salary package, whichever is lower.
  • Books and periodicals: The income tax law allows a salaried employee to claim tax-free reimbursement on the expenses incurred on books, newspapers, journals, periodicals, etc. They can claim it from the actual amount paid or amount provided in the salary package, whichever is lower.
  • Food Coupons: Your employer might provide you with food coupons. These coupons are taxable as perquisites in the hands of the employee. However, such coupons are tax-exempt up to Rs 50 per meal.
  • Section 80C, 80CCC, and 80CCD(1): Section 80C is a very commonly used option for saving income tax. Here an individual or a HUF can claim tax deduction up to Rs 1.5 lakhs. The government too supports a few as the tax-saving instruments (PPF, NPS, etc) to encourage people to save and invest in retirement.

Some of such investments under section 80C, 80CCC, and 80CCD(1) which are eligible for tax exemption are listed below:

  1. Life insurance premium
  2. Equity Linked Savings Scheme (ELSS)
  3. Employee Provident Fund (EPF)
  4. Principal payment on home loans
  5. Annuity/Pension Schemes
  6. Contributions to PPF account
  7. Sukanya Samriddhi Account
  8. Tuition fees for children
  9. National Saving Certificate (NSC)
  10. Fixed Deposit (Tax savings)
  11. Post office time deposits
  12. National Pension Scheme.
  • Medical Insurance Deduction (Section 80D): An individual can save tax on medical expenses/insurance premiums paid for the health of self, family and dependent parents.

The limit of these premiums under Section 80D deductions for self/family is Rs 25,000. For senior citizen parents, deductions of up to Rs 50,000 are applicable. Health checkups amounting to Rs 5,000 are also allowed. Your employer might pay a premium on your behalf, this is also eligible for deduction.

  • Interest in Home Loans (Section 80C and Section 24): Homeowners also have the option to claim a tax deduction for interest up to Rs 2 lakh on the home loan or self-occupied property. If you have let out your property, you can claim any amount you have paid as interest. If you are a co-borrower or co-owner of the house, you can also claim a tax deduction. However, the Rs 2 lakh deduction is only applicable if you finish the construction of the property within 5 years. If the construction is not finished within 5 years, you can claim only up to Rs 30,000.
  • Deduction for Loan for Higher Studies (section 80E): One can claim a tax deduction for interest on educational loans if only it has been taken from any bank or other financial institution for pursuing higher studies in India or abroad.

You can claim this deduction beginning from the year in which the loan starts getting repaid and up to the next seven years or before the repayment of the loan, whichever comes earlier. Even a legal guardian can avail of this tax deduction.

  • Deduction for Donations (Section 80G): The income tax law also provides a tax deduction to an assessee, who makes donations to charitable institutions. This deduction varies depending upon the institution which implies that one may avail a deduction of 50% or 100% of the amount donated, with or without restriction.
  • Deduction on Saving Account Interest (Section 80TTA): This section allows a tax deduction up to Rs 10,000 on the income earned from the savings account. This is only applicable when the income from bank interest is less than Rs 10,000, beyond this limit it would be taxable.
  • Additional Deduction for Interest on Home Loan (Section 80EE): This section allows the homeowners to claim an additional deduction of Rs 50,000 (Section 24) for interest component of the home loan EMI.

The loan amount must not exceed Rs 35,00,000 and the value of the property should not be more than Rs 50,00,000. Other than this, the individual should not have any other property registered under his name while the loan is sanctioned.

  • Income tax exemption on relocation allowance: There might be a possibility of you relocating to a different city for business reasons. This involves expenses like shifting to a new house, moving furniture, car transportation cost, car registration, getting your kids admitted to a new school and more. So, these expenses need to borne by the employer. The summary of tax liabilities under these expenses are listed below:

Car transportation cost: The employer may reimburse the transportation expenses incurred by the employee against actual bills submitted by the employee. Such expenses, whether reimbursed to the employee or directly paid to the transporters are exempt from tax for the employee.

Car registration charges: Most of the states in India charge a registration fee for the entry of any new vehicle in their state. Certain conditions need to be met for the car registration charges to be exempted from the taxes. That is, the car should be registered under the name of the employee. The same car should be used to travel during transfer so that it can be considered as a part of packaging and transportation cost. If the above conditions are fulfilled, any expenses reimbursed by the employer to the employee are exempt from tax for the employee.

Accommodation: Once you relocate, you will be provided accommodation facilities by the employer for the initial 15 days. Such expenses include boarding and lodging expenses, as well as your meal expenses. The expenses reimbursed or met by the employer will be exempt from tax for the employee.

Train/Air tickets: The traveling expenses incurred by the employee from their current place of residence to the place of new employment are exempt from tax for the employee.

Brokerage paid on the rented house: If the employer has paid any brokerage charges for finding any house for rent, the expenses incurred are considered to be towards the personal obligation of the employee. The reimbursed amount received by the employer is taxable as salary income of the employee.

School admission fees: Although if the employer reimburses the school admission fees for your children, this is considered to be a monetary benefit of the employee. Therefore this is taxable.

Any expenses occurred beyond the period of 15 days are taxable.

  • Tax treatment on notice pay and joining bonus: When you join a new company, you have to sign a bond or agreement stating that you need to serve the company for a specified period. If you want to leave the organization before completing this period, the organization might recover the notice pay or joining bonus paid to you initially.
  • Cab facility transport provided by employer: Employers might provide cab facilities to and from the office and residence of the employees. According to the Income Tax Act, cab facility provided by the company for a journey by the employee from their residence to the place of work, shall not be regarded as a taxable perquisite, even if it is provided to them free of cost or at a concessional rate.
  • Health club facility provided by employer: The health club facilities provided by the employer to its employee do not fall under the taxable perquisite of the employee.
  • Gifts or vouchers provided by employer: Any kind of gift or vouchers provided by the employer in cash or kind is tax-exempt up to Rs 5,000 per year.
  • Medical expenditure incurred outside India an employee: Cases, where an employee incurs expenses on medical treatment outside India are listed below:
  1. On the employee
  2. Any member of the family of such employee
  3. Travel and stay abroad of the employee or any member of the family in connection with the medical treatment
  4. Travel and stay abroad of one attendant who accompanies the patient in connection with the medical treatment.

The family includes spouse or children of the individual and also their siblings or anyone who is dependent on the individual.

The above expenditure would be exempt from tax for the employee subject to the conditions such as:

▪ The expenditure of medical treatment and staying abroad shall be exempted only to the extent permitted by the Reserve Bank of India.

▪ The expenditure on travel shall be excluded from the taxable perquisites only in cases when the gross total income of the employee does not exceed Rs 2 lakhs.

What is ITR (Income Tax Return)?

Income Tax Return (ITR) is a form where the taxpayers file information about their income and the tax applicable to the IT department. Ttaxpayers should file their ITR form on or before the specified due date. There are seven types of ITR forms- ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7.

Documents you need to keep ready before e-filing ITR are:

  • Permanent Account Number (PAN)
  • Aadhaar Card
  • Bank Account Details
  • Form 16
  • Investment details.

ITR Forms

● ITR Form 1 or SAHAJ

This form is applicable for the individual whose total income for the assessment year includes:

▪ Income from Salary/Pension

▪ Income from one House Property

▪ Income from other sources, including winnings from lottery or horse races.

▪ Agricultural income of up to Rs 5,000.

● ITR-2

This form is for the individual or a Hindu Undivided Family whose total income for the assessment year includes:

▪ Income from Salary/Pension

▪ Income from one House Property

▪ Income from other sources, including winnings from lottery or horse races.

Total income should be more than 50 lakhs

▪ If you are an individual director of a firm

▪Have had investment shares in unlisted equity shares during the financial year.

▪ Being a resident not ordinarily resident (RNOR) and non-resident

▪ Income from capital gains

▪ Foreign assets/income

▪ Agricultural income worth more than Rs 5,000.

Further, this form can be used if the income of the assessee is to be combined with the income of another person like their spouse, children, etc.

● ITR-3

This type of form is applicable for an individual or a Hindu Undivided Family who earn income from a proprietary business or is in a certain profession. Individuals who are eligible to file ITR-3 are:

▪ Have a business or profession

▪ Individual Director of a Company

▪ Have had investment shares in unlisted equity shares during the financial year

▪ The return may include income from House Property, Salary/Pension and income from any other sources

▪ The Income of a person as a partner in the firm.

● ITR-4 or Sugam

This form applies to individuals, HUFs, Partnership firms (other than LLPs) which are residents who earn income from a business or profession. It also includes people who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA, Section 44AE of the IT Act. If the turnover of the business is more than Rs 2 crore, the taxpayer has to file ITR-3.

● ITR-5

This form applies to firms, LLPs (Limited Liability Partnership), AOPs (Association of Persons), Artificial Judicial Person (AJP), Estate of the deceased, Estate of the Insolvent, Business trust and investment funds.

● ITR-6

This form applies to the firms claiming exemption under section 11 (Income from property held for religious or charitable purposes). This return can only be filed electronically.

● ITR-7

This is applicable to the companies required to furnish under section 139(4A)/ section 139(4B)/ section 139(4C)/ section 139(4D)/ section 139(4E)/ section 139(4F)

▪ Return under section 139(4A) needs to be filed for all individuals in receipt for income derived from property held under trust or by other legal obligation for charitable or religious purposes.

▪ Return under section 139(4B) is to filed by a political party if the total income exceeds the maximum amount, not a chargeable o income tax, without giving any effect to the provisions of section 139A.

▪ Return under section 139(4C) needs to be filed by every:

° Scientific Research association

° Association or institution referred to in section 10(23A)

° News Agency

° Institutions referred to in section 10(23B)

° Fund/institution/educational institution/university/hospital/medical institution.

▪ Return under section 139(4D) is required to be filed by any university or college or other institution who are not required to provide the return of income or loss under any other provision of this section

▪ Return under section 139(4E) should be filed by every business trust  who are not required to provide a return of income or loss under any other provision of this section

▪ Return under section 139(4F) should be filed by any investment fund referred to in section 115UB. They are not required to provide a return of income or loss under any other provision of this section.

How to file ITR?

ITR can be filed online by following the simple steps stated below:

  • Visit the official site of the income tax department (www.incometaxindiaefiling.gov.in) and log in using your user ID, password and the ‘captcha’.
  • After logging into your account, go to the e-file section and select the option of the income tax return.
  • Choose the assessment year, ITR form 1/ITR 4S and ‘prepare and submit ITR online.’
  • Check the bank details and click on the continue button.
  • Upload your Digital Signature Certificate (DSC) if registered with the e-filing, only if you have it.
  • Click on the submit button.
  • If you don’t have DSC, the income tax return verification will be displayed on the screen after successful submission.
  • Download the ITR form 5 and from the link displayed and submit it to the Central Processing Centre prior to 120 days from the e-filing date.
  • Once the process of ITR 5 is completed, your e-filing ITR will be done.

▪ You can fill only ITR 1 and ITR4s online.

Factors to be eligible for a refund?

 An income tax refund is due to taxpayers when they pay higher taxes as compared to their actual tax liability. Some of the reasons which lead to these cases are listed below:

  • The employer deducts taxes after taking into consideration all those documentary proofs provided to them by the employee on said 80C investments. However, when an employee is unable to provide proof for a few such investments before the end of a particular financial year, the employee goes ahead with a high deduction. So, the benefit of such investments can be claimed by the employee while filing his return of income and thus they can claim a refund of the higher taxes paid by them.
  • The income of certain people might be less than Rs 2.5 lakhs. Hence these individuals do not have to pay taxes. Yet, taxes get deducted from their income. Thus, they can claim a refund of the excess taxes deducted.
  • Taxpayers might be called upon by their income-tax officer to pay additional taxes following certain additions made to their income during tax proceedings. Such additions might be deleted by appeal authorities. Accordingly, the taxpayer would be refunded their taxes they would have paid.

How to check the Income Tax Refund Status?

The status of the refund can be checked either from the income tax e-filing portal or the NSDL website.

The income tax e-filing portal

  • Visit the official site of the income tax department (www.incometaxindiaefiling.gov.in) and log in using your user ID, password and the ‘captcha’.
  • Click on ‘View Returns/Forms’
  • Enter ‘Income Tax Returns’ option against ‘Select an Option’ and the relevant assessment year and then click on the submit button.
  • Click on the acknowledgment number
  • The income tax return status would be displayed.

The NSDL Portal

  • Go to the NSDL website. Give details like your PAN number, the assessment year, the ‘captcha’ and then click on the submit button.
  • Once this is done, a screen appears which shows the status of your refund.