July 31 marked the final deadline for filing income tax returns (ITR) for the financial year 2023-24. Over 7.28 crore returns were filed by this date, representing a 7.5% increase compared to the 6.77 crore returns filed for FY 2022-23, as reported by the Ministry of Finance.
Taxpayers are reminded to verify their unverified income tax returns within 30 days of filing. Those who missed the July 31 deadline should complete their submissions promptly.
Not all taxpayers qualify for a tax refund; eligibility is contingent on specific criteria. Refund processing commences only after the taxpayer e-verifies their return. Generally, it takes about 4 to 5 weeks for the refund to be credited to the taxpayer’s account, starting from the verification date, not the July 31 deadline.
“A taxpayer is eligible for an income tax refund when the taxes paid exceed their tax liability. This includes taxes deducted at source (TDS), taxes collected at source (TCS), as well as advance tax and self-assessment tax paid by the taxpayer,”. He also emphasized the importance of ensuring that bank account details are accurately validated when filing the ITR, as refunds are directly credited to the taxpayer’s bank account.
If you missed the July 31 deadline, you can still claim your refund for up to six assessment years, according to circular no. 9/2015, provided you meet certain conditions.
“To claim a refund under this circular, you must first apply for condonation of delay. Once approved, you can file your ITR online for the past six years, referencing the order granting the condonation,”
“The income tax laws allow the department to offset your refund against any outstanding demands from previous years. However, they must notify you before making such adjustments, which is not always followed. If your refund has been incorrectly adjusted, you can raise a grievance on the income tax website by logging into your account. While the department can adjust refunds for past demands, taxpayers cannot use refunds from previous years to cover taxes owed for subsequent years,”
Understanding these key rules can help ensure a smoother process when dealing with income tax refunds. Make sure to verify your returns promptly and keep track of any communications from the tax department to avoid issues with your refund.
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