An Income Tax Refund is a refund which is issued to the taxpayer by Income Tax authorities when his tax liability is less than the actual taxes he paid.
Situations where a person eligible for tax refund:
• If the taxpayer has paid more tax as self-assessment but he is liable to pay less tax through regular assessment.
• If TDS deducted by bank or employer of taxpayer is more than latter’s tax liability through regular assessment.
• If the same income of a taxpayer has been taxed in a foreign country (with which the government of India has an agreement to avoid double-taxation) and in India as well.
• If the taxpayer had not declared some investments which provided tax benefits to him.
The refund is processed within 2 to 6 months from the date of e filling of your return. It takes longer if you file your returns physically, that is paid either through direct credit to your bank account or by cheque. In an Assessment Year, claiming tax refund for Previous Years is possible for up to 2 Previous Years or Financial Years.