ITR filing 2024: Here are 3 tax refund rules you should know

The last day to file income tax returns (ITRs) was July 31. According to a Ministry of Finance announcement on Friday, over 7.28 crore income tax returns for the financial year 2023–24 were filed as of this date, representing a 7.5% increase compared to the 6.77 crore returns filed for FY 2022–23.

Within 30 days after filing, taxpayers are urged to confirm income tax returns (ITRs) that have not been confirmed. Those who failed to file their ITR by the deadline must finish their filings as soon as feasible.

Who is Eligible for an Income Tax Refund?

Not every taxpayer qualifies for a tax refund; only those entitled to one will receive it. Refund processing starts only after the taxpayer e-verifies their return. Typically, it takes about 4 to 5 weeks for the refund to be credited to the taxpayer's account, starting from the verification date, not the July 31 deadline. A taxpayer is eligible for a refund when the taxes paid exceed their tax liability, including taxes deducted at source (TDS), taxes collected at source (TCS), advance tax, and self-assessment tax. Ensure that bank account details are correctly validated when filing the ITR, as refunds are directly credited to the taxpayer's bank account.

How to Claim Your Income Tax Refund After Missing the July 31 ITR Filing Deadline?

If you missed the July 31 deadline for filing your ITR, you can still claim your refund for up to six assessment years, according to circular no. 9/2015, provided you meet certain conditions. To claim a refund under this circular, you must first apply for a condonation of delay. Once approved, you can file your ITR online for the past six years, referencing the order granting the condonation.

When Might Your Refund Be Withheld and How Can You Claim It?

The income tax department can offset your refund against any outstanding demands from previous years, but they must notify you before making such adjustments. If your refund has been incorrectly adjusted, you can raise a grievance on the income tax website by logging into your account. While the department can adjust refunds for past demands, taxpayers cannot use refunds from previous years to cover taxes owed for subsequent years.

Tax Slabs 2024

Tax Slab for FY 2023-24	Tax Rate	Tax Slab for FY 2024-25	Tax Rate
Upto Rs. 3 lakh	Nil	Upto Rs. 3 lakh	Nil
Rs. 3 lakh - Rs. 6 lakh	5%	Rs. 3 lakh - Rs. 7 lakh	5%
Rs. 6 lakh - Rs. 9 lakh	10%	Rs. 7 lakh - Rs. 10 lakh	10%
Rs. 9 lakh - Rs. 12 lakh	15%	Rs. 10 lakh - Rs. 12 lakh	15%
Rs. 12 lakh - Rs. 15 lakh	20%	Rs. 12 lakh - Rs. 15 lakh	20%
More than Rs. 15 lakh	30%	More than Rs. 15 lakh	30%

Also Read: All you need to know about the Union Budget 2024