Important Dates for Claiming Your Tax Refund: At this time of year, millions of Americans begin to ponder when their tax refund will be deposited into their bank account, with many fearing that a delay could signal bad news for their return.
There is never a precise answer when it comes to dates and tax returns because the Internal Revenue Service and how they operate involve so many variables.
Important Dates for Claiming Your Tax Refund
The positive news for many Americans is that the IRS has been processing tax returns more quickly in 2023 than in previous years, so people should receive their refunds sooner than they have in the past. This is primarily because pandemic-related delays have decreased.
They begin accepting 2023 tax returns in January. This means that the first filers may have received their refunds by mid-February. Note, however, that refunds for taxpayers claiming the Earned Income Tax Credit or Child Tax Credit are typically delayed by approximately one month while the IRS verifies eligibility for these credits.
What if you submitted your return late?
As might be expected, the later you submit your tax return, the later you can anticipate receiving your tax refund. Those who waited until March 27 to submit their return online and have it accepted may have to wait until April 7 for the direct deposit or until April 14 for the check to arrive in the mail.
Following the acceptance of a paper tax return. It typically takes eleven days for a cheque to be mailed to a taxpayer.
How is a refund of income tax processed?
The administration of income tax refunds is relatively simple. Once you submit your tax returns and electronically verify them or mail a hard copy of the ITR-V acknowledgement, refund processing will commence. The CPC will authenticate your taxes, determine whether the tax paid exceeds your tax liability, and initiate the refund process. When the refund processing is complete and a refund is generated, your bank account will be automatically credited.
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Qualification for ITR Refund
You are eligible to receive a Refund of Income Tax from the tax authorities if you have paid more in taxes than you owe during a fiscal year. Some reasons why a taxpayer may have overpaid tax include:
- Advance tax paid on the basis of self-assessment exceeds actual tax liability.
- The employer’s Tax Deducted at Source (TDS) deduction exceeds the employee’s tax liability.
- Error in tax calculation resulting in a larger tax payment than the actual tax owed
- Foreign-earned income is subject to double taxation.
- To receive a refund on the excess tax paid, you must file your ITR accurately and have it verified.
How to Request a Tax Refund
There is no distinct procedure for requesting an ITR refund. You only need to submit your tax returns to receive a tax refund. If you are eligible for a tax refund, whether you are claiming a TDS refund, double-taxation refund, or under any other circumstance, all you need to do is fill and verify your taxes accurately.
Ensure that you submit your taxes by the deadline. Typically, the last day to file ITR for individuals is July 31.
To qualify for a tax refund, you must file your taxes accurately. Ensure that all information included on the ITR form is accurate. Refer to Form 16, Form 24AS, TDS receipts from bank interest, paid self-assessment taxes, etc. to ensure that the correct information is provided. Keeping track of multiple TDS receipts can be tedious; in this case, you can use ET Money’s TDS Calculator. It will assist you in estimating the TDS amount deducted from a specific amount based on its nature.
After ensuring that you have the correct information, the next step is to determine if you are eligible for a refund.
Determine the quantity of tax refund you are entitled to. This makes it simple to track down the credit you are owed.
Once you file your ITR returns, don’t neglect to verify your returns. This is equally as crucial as submitting tax returns. ITR verification can be conducted online or in person. Electronic verification is performed by generating a one-time password (OTP) linked to your Aadhar or by sending you an electronic verification code (EVC) to your registered mobile number.
The refund should be deposited into your bank account within 45 days of the ITR being processed. If it takes longer than expected, you should inquire with the CPC about the cause of the delay.
