Income Tax Refund

An income tax refund is the amount the department returns to you when the tax you paid — through TDS, TCS, advance tax or self-assessment tax — exceeds your actual liability for the year.

What it is

Over the year, tax is collected from you in several ways — TDS deducted by payers, TCS, advance tax instalments, and any self-assessment tax. When you total all of that up and it comes to more than your final liability, the difference is owed back to you. That excess is your refund.

Why it matters

A refund only reaches you after the return you submitted on the portal is processed, and processing begins only once the return has been verified — see e-verification. The refund is credited directly to your pre-validated bank account, so it helps to confirm the account is linked and validated. You can check refund status on the Income Tax e-Filing portal at any time after processing starts.

Example Illustrative

Suppose for AY 2026-27 your total tax credits — TDS plus advance tax — add up to ₹75,000, while your final liability works out to ₹60,000. You have paid ₹15,000 more than due, so once your verified return is processed, ₹15,000 is credited to your pre-validated bank account as a refund. Figures are illustrative only; track your actual status on the official portal.