If you have paid excess tax to the Income Tax department than what was due or if the tax deducted at source (TDS) is more than your total tax liability in a given financial year, then you are eligible to get a tax refund.
The only way to get an income tax refund is to file your income tax returns (ITR). If any excess tax was paid by you or on your behalf (TDS), the remaining amount would get refunded once the tax assessment is complete.
Earlier while filing your ITR, taxpayers were also supposed to fill up Form No. 30 to claim income tax refund but now the income tax department processes claims directly on the basis of ITR documents. With effect from September 1, 2019, the Finance Act, 2019, has amended the Form 30 provision to provide that the tax refund can be claimed only through ITR filing.
In tune with digitisation, the Income Tax department has now started issuing refunds only through the e-mode. It is now therefore mandatory to give your bank account details while filing ITR. Ensure that the account mentioned in the ITR is in active status. It is also mandatory for you to link your bank account with PAN card, according to the new rules.
Once you have filed your ITR and completed the e-verification process, it is important to keep an eye on processing of tax returns and refund claim status, if any. If you do not receive tax refund in due time, you are eligible to receive monthly interest of 0.5%.
To check your tax refund status, login to the e-filing website with user ID, password and date of birth. Go to 'My Account' section and click on 'Refund/Demand Status' to keep a track of your refund status.