Income Tax Refund query - Professionals - Taxation - TIK Share
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Income Tax Refund query

Rahul Rai


How does income tax issue the tax refunds?

If an assessee forget to claim any TDS, is it automatically credited in assessee's account?

Even if advance tax and tds are wrongly claimed in wrong boxes in itr, why does IT department issue notice? Even though the total claim is correct.

CA Pulkit Sharma


Tax refunds are credited to assessee's accounts either online or by cheque.

It returns are processed online, the servers match the data given by tax payers and data in form 26AS. If the data does not match the servers automatically generate the initimation and return is to filed again under section 139(1).

Even if the total tax claimed by assessee is correct, servers can not  think like humans. If servers accept the return, the return is however defective return because tax claimed is not correct. TDS and advance tax if punched in wrong cells makes the return defective.

In some cases it happens, if assessee does not claim TDS department after processing the return sometime refund the excess tax paid by assessee.