Know when to expect your tax refund for 2020
Taxpayers who file their forms electronically can expect to receive their refund in three weeks, or 21 days, on average. According to the IRS website, those who opt for direct deposit will receive their returns even faster. Refunds are normally issued six to eight weeks after the IRS receives the taxpayer’s return in the mail for those who file paper returns.
However, the epidemic has made 2021 an unusual tax year, and many taxpayers may have to wait longer than the typical 21 days for their refund. Don’t be surprised if you encounter a delay due to a Covid-related backlog of processing 2019 tax returns, an understaffed IRS, and new tax restrictions concerning obtaining pandemic tax credits.
When the tax return does come 2020
After the ITR is processed, tax refunds are usually delivered within a month. “Refunds are typically processed within 20 to 45 days after the Centralized Processing Centre completing ITR processing. According to Kapil Rana, founder, and chairman of HostBooks Ltd, a tax return filing service provider, “the taxpayer qualified for a refund claim up to 5 lakh gets direct bank credit within five to seven business days following the issuing of the refund.”
How to claim a tax refund
If you filed your ITR correctly, the tax agency will process your refund automatically if you are eligible. If you’re new to ITR filing, here are some guidelines to help you collect your return.
- Log in to the IT department’s official returns filing portal
- Register with your PAN, which will serve as your portal user ID
- Select the relevant assessment year and ITR form under the ‘Download’ option
- Open the Excel program you downloaded and fill in all of the information requested on Form 16
- If you owe more taxes, the difference will be calculated and presented in the “Refund” field of your ITR form
- After you’ve double-checked everything, an XML file will be generated and saved on your computer
- Click the “Submit Return” button on the online tax portal and submit the XML file.
When can you expect your refund?
Between 8 April and 11 July, the income tax department gave refunds of Rs 24,603 crore to 19.79 lakh taxpayers, according to a notification dated 17 July. Given the continued financial crisis caused by COVID-19, the department has accelerated the refund issue procedure to offer liquidity to taxpayers, however many of you may still be waiting for your return.
If you haven’t received your tax refund despite filing your income tax return (ITR) by the deadline, keep reading to find out what could be causing the delay. We also provide instructions on how to track the progress of your tax refund.
Taking too long? Check your status
To view Refund/ Demand Status, please follow the below steps:
- Login to e-Filing website with the User ID, Password, Date of Birth / Date of Incorporation, and Captcha.
- Go to My Account and click on “Refund/Demand Status”.
- Below details would be displayed.
- Assessment Year
- Status
- Reason (For Refund Failure if any)
- Mode of Payment is displayed.
Where can I check the status?
Once the refund is determined, the same will be processed by the tax department. The status of refund can be checked either from:
- The income tax e-filing portal or
- The NSDL website
