Refunds

A taxpayer has to pay his income tax on a yearly basis.

When a taxpayer paid his tax amount, which is more than his tax liability then he will get a refund from the Income Tax Department, it is known as Income Tax Refund.

For claiming your income tax refund, you have to file your income tax return in the usual manner. You can either verify your return electronically via using Aadhar OTP or through bank account details or you can physically verify it and post it to Centralised Processing Centre (CPC) within 120 days of filing the income tax return.

If you have received a refund, then you might have noticed that the amount of refund received is higher than the amount of claimed refund. This is because you have received the interest on your refund. If your income tax refund is 10% or more of your income tax paid then it is mandatory for the income tax department to pay interest on your tax refund.

According to Section 244A of the Income Tax Act, 1961 interest on an income tax refund is provided at the rate of 0.5% per month or part of the month of the refund amount.