Taxpayers who have paid a higher tax to the Government than they are actually liable to pay, file for Income Tax Return in order to obtain Income Tax Refund. The major reasons for filing for an Income Tax Return so as to obtain the refund can be mentioned below.
- When a taxpayer has paid advance tax on the basis of self-assessment and this amount turns out to be much more than the actual tax liability of the taxpayer.
- If the TDS for a taxpayer has been deducted much more than it actually should be according to the liability, then the taxpayer can file for an Income Tax refund.
- Double taxation of the income of the taxpayer or the taxpayer has not been able to submit his investment proofs and had to pay heavy tax.
The refund banker is a scheme operational for all Indian taxpayers. As per this scheme, when the refund requests are being processed by the Income Tax Department then the refund amount will be issued to the taxpayers by one particular bank i.e. The State Bank of India.
Methods of Refund issue
There are mainly two methods by which refund can be issued to the taxpayers.
- The refund amount can be credited to the bank account of the taxpayer. The bank details will be provided by the taxpayer while filing for the Income Tax Return.
- The refund amount can be paid back to the taxpayer through a cheque. This cheque would be sent to the mailing address of the taxpayer.
5) Select Assessment Year >> Enter CPC Communication Reference Number (refer intimation 143(1) notice from Income-tax Department) and Refund Sequence Number.
Reasons for not receiving refund issued by the Income Tax Department
There are quite a large number of reasons due to which even if the refund request has been processed and refund has been issued by the Income Tax Department, the taxpayer/assessee has not received it on time.
We can list down a few eminent reasons as below.
- If the bank account details provided by the taxpayer are wrong then the refund would not be successful. Bank account details can include details like IFSC code, Invalid Account number, wrong or mismatched account holder name, etc. In these cases, the assessee would not be able to get the refund.
- If the mailing address or the communication address provided by the taxpayer is not correct then the Refund Banker would not be able to send the cheque related to the refund amount.
- There can be a mismatch in the tax details mentioned in the Form 26AS and the details filled by the taxpayer while filing for ITR. The Form 26AS is an annual statement issued by the Income Tax Department which provides details related to an assessee such as TDS, Advance tax payment by self-assessment, refunds received from the Income Tax Department, any default in TDS payment, etc.
- The refund cannot be received by the assessee if by any chance certain details like BSR code, date of payment or the challan numbers are incorrect.
Intimation 143(1)Intimation 143(1) is an intimation order which is given by the Income Tax Department of India to a taxpayer with reference to an Income Tax Return filed by him.
There are mainly two conditions or circumstances in which an Intimation 143(1) is issued by the Income Tax Department.
- If there has been an extra payment of tax made by the taxpayer, then an Intimation 143(1) is issued by the Income Tax Department.
- If a taxpayer has paid less amount of tax, then the Income Tax Department will issue an Intimation 143(1) which will mention the actual amount to be paid along with a challan’s copy.
Assessment under Section 143(1)For every ITR request, the data is cross evaluated by CPC (Centralized Processing Center) with the records of the Income Tax Department. These records of the Income Tax Department consist of details on TDS, bank’s information, etc.). If there are any discrepancies found out during the evaluation, the intimation is issued with information on the discrepancies.
The comparison or evaluation is done on the basis of mainly 4 categories i.e. Income made from various sources, Deductions under 80C, 80D, etc., TDS and the Total Gross Income. The taxpayer is informed by intimation on his email or via post and is given a time period of 30 days to file a response against the intimation. If there is no response from the taxpayer, then the Income Tax Department will make the adjustments and will send the intimation to the taxpayer. Usually, there are 3 types of Intimations that are sent out to the taxpayers.
- Intimation with no refund or demand
- Intimation determining demand
- Intimation determining refund
Request for intimation u/s 143(1)
As a part of the procedure, after the evaluation or validation of records are done by CPC; the taxpayers are informed by intimation. Suppose, a taxpayer has to issue a resend request for intimation u/s 143(1); then he can follow the below mentioned steps.
- The taxpayer needs to login to the e-filing portal of www.incometaxindiafiling.gov.in
- Then in the next step, the taxpayer should go to ‘MyAccount’ menu. There he can click on ’Service Request’.
- In the next step, he needs to select ‘Request Type’ as ‘New Request’ and ‘Request Category’ as ‘Intimation u/s 143(1)’ and finally click on the ‘Submit’ button.
- Now, he can enter the details i.e. Return Type, Assessment Year, Category.
- Finally, the option ‘Submit’ needs to be clicked.
The Refund re-issue request is an advantageous and helpful option for the taxpayers. In case of any mistakes done or any entry of wrong information during the filing for ITR, those can be corrected and the taxpayer can receive the refund easily after some days of re-issue request submission. However, it is always advisable to be correct while putting your details into the system while e-filing for ITR. This can make the procedure even simpler and less time consuming.
- Is the intimation under Section 143(1) an assessment order or just a notice?
The intimation under Section 143(1) is intimation and not an assessment order. It is completely automated and has no human involvement.
- How will the refund be sent to me?
The refund will be sent to the assessee based on the option that has been selected by the assessee while filing for ITR. It can be credited to the bank account of the assessee or will be sent via cheque to the postal address mentioned while filing ITR.
- My refund status shows ‘Refund Expired’. What should be done?
The refund must not have been presented for payment within 90 days of validity period. As a result, it got expired or canceled. You should raise a re-issue refund request either by electronic medium or contact your Assessing Officer for this.