Eligibility:
Overpaid taxes through advance tax, TDS, or self-assessment tax.
Double taxation with a country having an agreement with India.
Claim Process:
File an income tax return (ITR) with all income, deductions, and taxes paid.
Post-Filing:
Receive an intimation under section 143(1).
Check for matching refund amounts or correct discrepancies under section 154(1).
Timeline:
Returns processed within 45-60 days.
Refund credited within a week after processing.
Delay Reasons:
Incorrect bank details or not pre-validated bank account.
Mismatch in Form 26AS and tax return.
Interest on Delay:
No interest if refund is less than 10% of tax liability.
Interest at 0.5% per month if refund exceeds 10%.
Interest Calculation:
Calculated from April 1 of the next financial year until the refund date.
Taxability:
Refund itself is not taxable.
Interest on refund is taxable under "Income from other sources".