Income Tax Refund Time Limit in India | CA in Indore
(Know the time limit to claim Income Tax Refund in India. Expert guide by CA Pankaj Agrawal, Indore. Learn refund deadlines, delays & CBDT condonation rules.)
Introduction
One of the most common questions taxpayers ask is: “What is the time limit to claim an Income Tax Refund in India?”
Every year, lakhs of taxpayers in India end up paying extra tax either through TDS, advance tax, or self-assessment tax. If the tax paid is more than the actual liability, the Income Tax Department refunds the excess amount.
However, to receive this refund, there are strict timelines, conditions, and procedures set under the Income Tax Act, 1961. Delay in filing or non-compliance can cost you your rightful refund.
This blog explains in detail:
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Time limit to claim Income Tax Refund
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Interest on delayed refunds
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How long the department takes to issue refunds
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Practical FAQs for taxpayers in Indore & across India
What is an Income Tax Refund?
An Income Tax Refund arises when:
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The TDS deducted is higher than your actual tax liability.
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Advance tax or self-assessment tax paid is more than required.
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Double taxation relief is claimed.
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You qualify for deductions/exemptions not adjusted earlier.
Example: If your total tax liability is ₹50,000 but TDS deducted is ₹70,000, then you are eligible for a refund of ₹20,000.
Time Limit to Claim Income Tax Refund
✅ General Rule: You can claim an Income Tax Refund by filing your Income Tax Return (ITR) within the due date u/s 139(1).
1. Normal Time Limit
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The refund can be claimed till the end of the relevant Assessment Year (AY).
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Example: For FY 2023-24 (AY 2024-25), the due date to file and claim refund is 31st July 2024 (for individuals not requiring audit).
2. Belated Return (Section 139(4))
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If you miss the original due date, you can still file a belated return up to 31st December of the Assessment Year.
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Refund can also be claimed through belated ITR.
3. Revised Return (Section 139(5))
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If you make mistakes in your original ITR, you can revise it and claim the refund till 31st December of the Assessment Year.
4. Condonation of Delay (CBDT Power – Section 119(2)(b))
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If you miss even the belated/revised return deadline, you can still apply for a refund under condonation of delay.
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Such applications can be made within 6 years from the end of the relevant Assessment Year.
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Approval is at the discretion of CBDT or the concerned Income Tax Authority.
👉 So effectively, the maximum time limit to claim Income Tax Refund is 6 years, subject to approval.
Time Taken to Issue Refund
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After filing ITR, refunds are processed by the Centralised Processing Centre (CPC), Bengaluru.
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In most cases, refunds are issued within 20–45 days of ITR processing.
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Refunds are credited directly to your bank account linked with PAN & pre-validated on Income Tax Portal.
Interest on Delayed Refund
As per Section 244A of Income Tax Act:
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If refund is delayed beyond a certain period, the Income Tax Department pays interest @ 0.5% per month (6% per annum).
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Interest is calculated from 1st April of the Assessment Year till the date refund is granted.
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Interest is taxable in the year of receipt.
Practical Tips for Taxpayers in Indore & Across India
✅ Always file ITR before due date to avoid refund delays.
✅ Ensure your bank account is pre-validated & PAN linked.
✅ Track refund status on Income Tax Portal.
✅ If refund is delayed beyond 3-4 months, raise a grievance on e-filing portal.
✅ For old refunds beyond 1 year, apply under Section 119(2)(b) – condonation of delay.
FAQs on Income Tax Refund Time Limit
Q1. What is the last date to claim refund for AY 2024-25?
👉 31st December 2024 (belated return deadline).
Q2. Can I claim refund after 3 years?
👉 Yes, but only through condonation application, subject to CBDT approval, within 6 years.
Q3. How can I check refund status?
👉 Through Income Tax Portal or TIN NSDL Refund Status link.
Q4. Is refund taxable?
👉 Refund is not taxable, but interest on refund is taxable under “Income from Other Sources”.
Conclusion
Income Tax Refunds are your right as a taxpayer, but you must be aware of the time limits and procedures. Timely filing of ITR ensures smooth refund processing and avoids litigation.
For residents of Indore and across Madhya Pradesh, if you are facing refund delays, notices, or condonation issues, you may consult our expert tax team at Pankaj Agrawal & Associates, Chartered Accountants, Indore.
📞 Contact Us
CA Pankaj Agrawal
Partner, Pankaj Agrawal & Associates, Chartered Accountants
📍 88 Jawahar Nagar, Near Rajendra Nagar, Indore (M.P.) – 452012
📱 +91 7999028234
📧 pankajagrawal0116@gmail.com
