Income tax (IT) returns filing does not end with e-fling. You are required to verify your returns and the IT department will further process them. Verification of IT return means declaring that the filed information is as per your consent and true to your knowledge and you want the IT department to go ahead with processing it.
The Centralized Processing Centre (CPC) then verifies the information provided by you. If the CPC finds no discrepancies in the details submitted, the IT department will go ahead with determining the amount that is refundable to you. On the other hand, if there is any inconsistency or false details submitted by the taxpayer, he/she will be informed by e-mail and the status of the same will also be shown on the taxpayer's account on the e-filing website.
One needs to check their account for status to know the current status of their refund and rectify any discrepancy noted by the CPC in a timely manner. The status is however displayed using IT jargons that you may not be familiar with. Here are the explanations of some of them to help you with.
If you haven't filed the ITR in accordance with the law (failure to submitted associated forms, missed filing schedules, etc) it will be deemed as defective. A notice will be sent to you in this regard and you will be required to rectify the error in 15 days. Failure to do so will result in the IT department treating your ITR filing as invalid.
If the discrepancy involves exceptional complexities that require intervention by a human being, the status will be 'Case transferred to AO,' which means that the case is transferred to an 'Assessing Officer' within your geographical jurisdiction who will process the case. You should wait for the AO to contact you via phone call or email. Make sure your contact details on the e-filing website are correct.
Outstanding tax demand
An ‘outstanding tax demand' status will mean that your tax liability is higher than what you have already paid. An automated email with computer-generated document is sent to the taxpayer as intimation.
The amount is checked by the system without human intervention. When you receive an email regarding the same with a transaction ID, login into the e-filing portal and under the response to status option choose from:
- Demand is correct
- Demand is partially correct
- Disagree with demand
- Demand is not correct but agree for adjustment
You can pay the outstanding amount online and if you disagree with the amount, you can choose the disagreement option and state your reason.
It means that the IT department could not credit the refund amount to your bank account because the details provided by you were incorrect or the address was wrong in case of paper refund. Go to my account> service request> new request> refund reissue. This will help you apply for a refund reissue from the IT department.
Refund not determined
A 'refund not determined' status is issued when the IT department has not processed your refund. Refunds are processed on a first come first serve basis, the earlier you file your returns, the sooner you get the refund.
Ideally, it should tax a few days after verification. The IT department is liable to refund it within a year after the end of the financial year. So for the financial year 2017-18, the IT department can take up to March 2020 to refund the tax amount.