FAQ on general problems in income tax return (ITR) and Refund by Dr. MK Bhatt
It will be our pleasure to draft you FAQ based on interview of Dr. MK Bhatt, Renowned Income tax practitioner in Delhi ( Associate Member (ACS) of the Institute of Company Secretaries of India (ICSI),Law Graduate (LLB),Master of Business Administration (MBA) in Finance,He has been awarded (D.Hum) Doctorate in Humanity)
All assessee face numerous problem while filing their Income tax return but tracking their income tax refund is even more difficult .In this article you will find the solution to most of the issues you face while filing ITR or tracking for refund.
You can mail your queries at┬аadmin@mkbhatt.com or info@consultease.com or can ask in comment.
1) What I should do if I don’t receive my refund long after I filed my ITR?
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Many times it may happen that the taxpayer has paid excess tax as against the tax required to be paid by him, in such cases assessee will be eligible to claim refund of the excess tax paid by him. Sections 237 to 245 deal with the provisions relating to refund of tax.┬аGenerally refund gets credited into the bank account of the assessee within 3 to 4 months after filing return of income.┬аIn cases it gets delayed for a long time, then the claim should be made in Form No. 30. by mentioning the particulars of relevant assessment year for which refund is sought. The claim of refund is required to be made┬аwithin one year┬аform the end of assessment year. However condonation may be granted but no con-donation application for claim of refund/loss shall be entertained beyond six years from the end of the assessment year for which such application/claim is made.
2) What should I do in case my refund is returned?
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Sometimes income tax refund may get returned due to reasons like expired cheque or incorrect bank account number or bank account closed etc. In such circumstances an online request is required to be submitted on┬аhttp://www.
3) Is it enough to file ITR or I need to track for assessment?
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Being an assessee, his duty is to file the return of income within due time under the purview of section 139 on Income Tax Act, 1961 w.r.t. the particular assessment year. Once the return is filed, assessee is not required to track that whether any assessment proceedings are being opened against him or not. If this happens that will be the responsibility of income tax authorities to communicate ┬аand serve the notice of assessment opened to the assessee in the mode specified under section 282 of Income Tax Act, 1961. ┬а┬а
4) How can I inform the department about change in my bank account number?
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Bank account number is required to be furnished at the time of filing the return of income. The very purpose of that bank account number to credited the refund due to the assessee directly into the bank account, if due. In case you want to update the bank account number that can be done by logging into┬аhttp://www.
5) How can I inform department about change in my address?
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┬аUpdation of Mobile Number & Email-Id :
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That can be done by logging into┬аhttp://www.
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Updation of Communication Address :
The procedure for updation of communication address is very simple. Assessee is required to visit to income tax site┬аhttp://www.
6) I had given my bank account detail still I received a cheque. Why?
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Possibly you have opted for the paper refund and ┬аnot for ECS or may be bank account number provided is incorrect or any other reason while filing the return of income in the requisite form.┬а
7) How can I make the re-issue of cheque?
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In such circumstances an online request is required to be submitted on┬аhttp://www.
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8) My check was received late and it was more than 3 months. Can I receive my cheque again?
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┬аYes, assessee can get the cheque again on request. In such circumstances an online request is required to be submitted on┬аhttp://www.
9) My refund is adjusted against past dues.How can I correct that?
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As per the provisions of section 245 of Income Tax Act, 1961, AO is authorized to adjust the refund(s) pending against pending demand & arrears. However a prior intimation as well as an opportunity of being heard shall be given to the assessee before making the proposed adjustment. In such case assessee is required to take the following steps :
┬а ┬а a. Ascertain the┬аnature of demand┬аoutstanding against him.
┬а ┬а b. Check who raised the demand CPC (Central Processing Centre) or Jurisdictional Assessing Officer.
┬а ┬а c. Upload┬а“Rectification of Return”┬аin case of CPC and in case of AO communicate to the AO.
┬а ┬а d. After rectification or communication file┬а“Online Response”.
┬а ┬а e. Even if not satisfied then file┬а“Online Grievance”.
If you fail to respond to the demand┬аwithin 30 days┬аfrom the date of receipt of notice under section 245, department will adjust demand with the refund due to you.┬аIt is advisable to never leave the notice of demand unresponded.
10) What is the time period in which department should issue my refund?
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However there is nothing clearly specified under provisions of income tax act that within how much time income tax authorities must issue refund to the assessee. For reducing the effect of this hardship on assessee provision for interest on income tax refund due to the assessee are there in the act.
11) How much interest department need to pay in case of delayed refund?
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Under Section 244A of the┬аIncome-Tax┬аAct, 1961, a taxpayer is entitled to┬аinterest┬аat 0.5% for every month (6% per annum) from the first day of April of the assessment year to the date on which the┬аrefund┬аis granted, where the┬аrefund┬аarises on account of┬аtax┬аdeduction at source (TDS) or advance┬аtax┬аpayment.
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