I have been paying taxes since 2009-10 financial year. I pay advance tax with some Rs.2000 buffer, just in case I missed something. Most of the time, it turns out, I have already paid excess, even excluding the buffer amount. So during filing my return I claim for a refund.
Not once have I received my refund.
I amazes me how Government will be keen on letting tax payers know that they are due for payment by 31 July via innumerable number of ads but when it comes to refunds, we are simply left to wonder ourselves. Its not me alone. My CA tells me there are hundreds of clients who have been waiting since years for their refund. Its not a big problem, if you’re like me, who is expecting just a few hundreds or some single digit thousand multiple as refund. But I personally know people who claimed a hefty 5 figure refund. They didn’t receive theirs yet.
Refunds from 2013-14
This is likely to change though, from 2013-14, as more number of people have been made to file online returns. If you didn’t know, processing refunds claimed via online returns is much, much faster compared to paper returns. With new rules, it is more likely that you will be required to file your return online and hence your refund will be too, faster.
The refunds will be processed by CPC Bangalore, where you send your ITR V form (if applying via paper or semi-online). SBI acts as the official banker (called the ‘refund banker’) to process all the refund payments.
How are refunds processed?
While filing your return, you will have mentioned any refund that you should be getting. If you want this refund be paid via NEFT, you should mentioned your bank a/c number and IFSC of your branch. Otherwise, refunds will be sent via cheques (more time added to an already dreadful process).
The CPC Bangalore will verify your refund claim and if it sees fit, it will process your claim and send your refund to SBI for paying to you. You can check your refund status online at the TIN site via the ‘Status of tax refunds’ link. Once you enter your PAN and select assessment year, you will be shown information consisting ofPayment mode, a Ref number, Status of payment and Date when processed. This will be shown only when your refund is processed by CPC Bangalore. Otherwise, you will be told that your AO has not sent this refund to SBI.
Tip: If you have filed e-return, the official income tax india site shows status faster than TIN.