Income Tax Refund in India
An Income Tax Refund occurs when a taxpayer has paid more tax than their actual liability, either through TDS (Tax Deducted at Source) or advance tax. The excess amount is refunded by the Income Tax Department.
Key Points:
- Filing Returns:Refunds are processed after filing income tax returns.
- Processing Time: Typically takes 2-3 months, but may vary.
- Direct Credit: Refunds are directly credited to the taxpayer's bank account.
- Income tax refunds ensure that taxpayers receive the excess amount they have paid, helping maintain cash flow.