Income Tax Refund – With Income Tax Form 30 Example

Income Tax refund arises just in case of a mismatch between the tax amount paid and therefore the actual payable amount. If the money paid is above the particular amount payable, a refund is initiated. The Form 30 is used for similar purpose.

Learn all about Income Tax, Due Dates for E-Filing ITR, Online Tax Payment and efiling Income Tax in our other pages.

What is an Income Tax Refund?

Under the tax and other tax laws, refunds arise in those cases where the money of tax paid by an individual (or paid on his/her behalf) is bigger than the amount on which he/she is properly chargeable. This is noted under Sections 237 to 245 of the tax Act, 1961.

Am I eligible for an Income Tax refund?

There are many cases wherein you will be eligible for a refund. Some of them are:

  • If the tax you’ve paid before based on the idea of self-assessment is is often the tax payable on the idea of normal assessment.
  • If your tax deducted at source (TDS) from dividends, interest on securities or debentures, salary, etc. is above the tax payable on the idea of normal assessment.
  • If the tax charged, supported regular assessments, gets reduced because a mistake within the assessment process was resolved.
  • The same income is taxed during a foreign country (with which the govt of India has an agreement to avoid double-taxation) and in India also .
  • If you have investments which supply tax benefits and deductions that you simply haven’t declared.
  • If you find, after considering the taxes you’ve paid and therefore the deductions you’re allowed, that the tax paid amount is in the negative.

How can I get IT refund in India?

When you file the return of your income, you’ll avail tax refund. In general, the date for filing tax returns is July 31 of each year unless extended.

What is the Direct Tax amount that I will be able to get back?

In order to search out the quantity of tax that you simply will revisit because the refund, you want to calculate the liabilities that’s related to you. If the quantity that you simply have paid as taxes is quite the liabilities , then you’ll get the additional amount as a refund.

How can I claim my Income Tax refund?

The easiest way to file for your tax refund is to declare your investments in Form 30 (investments in equity/NSC/mutual funds, bank FDs, tuition fees, life insurance premiums paid, house rent being paid, etc.) while filing your IT return and submit the required proofs. If you’ve fall do so and are paying extra taxes you think that you’ll have avoided, you’ll have to fill out Form 30.

Form 30 is essentially an invitation for your case to be looked into and therefore the excess tax that you simply have paid is refunded. Your tax refund claim must be submitted before the top of the fiscal year . Your claim must be amid a return within the form (prescribed under section 139).

The Form 30 format is as follows: (Sample)

I, (your name), of (address), do hereby state that my total income computed in accordance with the provisions of the tax Act, 1961, during the year ending on (year) being the previous year for the assessment year commencing on the 1st of April (year), amounted to Rs. (amount); that the whole tax chargeable in respect of such total income is Rs. (amount) which the whole amount of tax paid or treated as paid under:

Section 199, is Rs. (amount).

I, therefore, request for a return of Rs. (salary amount).


I hereby declare that i have to be resident/resident but not ordinarily resident/non-resident during the previous year relevant to the assessment year to which this claim relates and that what stated in this application is correct.

Dated: (date)


It is important to note that:

  • This claim should contain a document of proof of return of income during a prescribed form, unless you’ve already made such a claim to the Assessing Officer.
  • Non-residents whose salary is subject to TDS should make the claim for refund to the “Assessing Officer, Non-resident Refund Circle, Bombay”.

If you have been charged direct tax under the provisions of Section 193 – 195, Section 194B and Section 195 on your income (for dividends, etc.), the claim should be accompanied by the necessary certificates recommended under Section 205.

How is Income Tax refund processed?

The tax authorities who are present at the Centralised Processing Centre (CPC) in Bengaluru are liable for processing the tax (IT) refund. The refunds are processed once the assessee files his/her tax Returns (ITR). If any tax reimbursement arises at the time of processing the ITRs, the IT refund banker receives the orders for refund of tax which are generated and transferred by the IT authorities.

How is the payment of direct tax refund made?

The payment of direct tax refund is formed in one among the subsequent methods:

  • Direct transfer of the amount to be refunded to the taxpayer’s bank account: This is often the standard method which is employed for the aim of transferring the tax refund amount to the taxpayers. The transaction might be made through NECS/RTGS. It is important on the basis of the taxpayer to form sure that all the main points concerning his/her checking account are properly furnished within the return forms at the time of filing the returns. This enables the easy and fast movement of funds directly to the account.
  • Income Tax Refund via cheque: This method is an alternate option for transferring the tax refunds. In the case of the bank details provided by the taxpayer at the time of filing the tax Returns (ITRs) isn’t unclear, incomplete, or wrong, the Income Tax authorities issue a cheque addressing the account number which is equipped by the taxpayer at the time of filing his/her returns.

How do I track my Income Tax Refund?

The IT department allows you to step the status of your refund. If your refund procedure has not been completed by your officer responsible , you’ll receive a message notifying you of an equivalent .

Just follow these two steps to claim direct tax refund.

  1. Get Refund through Direct Transfer: Excess tax paid are often refunded to you by crediting your checking account with ECS transfer. RTGS/NECS also are wont to transfer the tax refund directly into your account, using your 10-digit account number and MICR code, through the depository financial institution of India. You can track your tax refund through the website or through NSDL-TIN website by clicking on “Status of Tax Refunds”. You will then have to enter your PAN number and assessment year for refund details.
  2. Refund by cheque: you’ll track this with the speed post service that has been tasked with delivering it, using the reference number that the IT department will offer you .

Due Date to Claim Income Tax Refund

Direct tax refunds must be claimed within 1 year from the date on which the assessment year ends. However, in certain cases, assessing officers tend to entertain refund claims that were filed after the required maturity . Here are some points you would like to stay in mind:

  • Income tax refund claims won’t be considered if six successive assessment years are completed.
  • The refund amount must be but Rs.50 lakh for one assessment year.
  • Interest won’t be offered on refund lately claims.
  • If the delayed demand require verification, the assessing officer could reconsider the demand of that petition.

Interest on Delayed Income Tax Refund

Under Section 244A of the tax Act, just in case the refund payment is delayed, the tax Department is susceptible to pay interest at 6%. The interest applicable to your refund money shall be computed from the date on which the tax was paid to the date on which the refund was made. For example, if you claim a refund of Rs.10,000 for AY 2017-18 and you received the refund in March 2018, the interest applicable to your refund are going to be computed from April 2017 to March 2018.

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