Taxpayers must file income tax returns (ITRs) and e-verify them to claim a tax refund. Those who missed the July 31 deadline can file it by December 31, 2024, the extended window, after paying a penalty of Rs 5,000. Note that one must also e-verify the return to complete the process. The Income Tax Department will only consider a refund when ITRs are e-verified.

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Not filing returns can lead to potential jail time and financial penalties. Additionally, if you file a belated return, you will be charged the late fee plus 1 per cent interest per month for the period delayed. If you miss the deadline, you will also lose the benefit of carrying forward losses, if any.

Individuals who have filed their ITRs and are expecting a refund must ensure their returns are e-verified before the tax department can process them. E-verification can be done on the e-filing portal via net banking, Aadhaar OTP, or sending a signed ITR-V form. The tax department typically takes four to five weeks to process the refund, depending on the case.

How to Track Your Refund Status?

To track your income tax refund status, follow these steps:

1. Visit the e-Filing Portal: Go to the income tax official website
2. Login: Enter your user ID and password. If your PAN is not linked to your Aadhaar, a pop-up message will appear indicating that your PAN is inactive. Click ‘Link Now’ to link your PAN with Aadhaar, or select ‘Continue’ if linking is unnecessary.
3. Access Refund Status: Go to the ‘e-File’ tab, select ‘Income Tax Returns.’ and click ‘View Filed Returns.’
4. Check Refund Status: View the refund status for the desired assessment year. Review detailed information, including the lifecycle of your filed ITRs.

The refund status may indicate whether a refund has been issued, if it is partial, or if the department has adjusted the total refund.

Also Read: Received An Income Tax Notice After Filing Your ITR? Here’s What You Should Do

If you fail to file your ITR by July 31, you can still file the return by December 31 and claim a refund after paying a penalty and a late fee. According to the I-T Department, more than seven crore ITRs were filed by the July 31, 2024, deadline in the current return filing season.

In her Budget speech in Parliament, Union Finance Minister Nirmala Sitharaman announced several changes in the tax rules for FY2024-25 that would benefit taxpayers.