How to Claim an Income Tax Refund While Filing ITR

Getting an income tax refund feels nice.

But the refund does not happen automatically just because extra tax was deducted.

To claim an income tax refund, you need to file your Income Tax Return correctly, report your income, claim the right tax credits, add correct bank details and verify your return after filing.

If your tax paid or TDS deducted is more than your actual tax liability, you may be eligible for a refund.

What is an income tax refund?

An income tax refund is money returned by the Income Tax Department when you have paid more tax than you actually need to pay.

This can happen through:

• TDS deducted from salary

• TDS deducted by banks

• Advance tax paid

• Self-assessment tax paid

• Excess tax paid due to wrong calculation

• Deductions claimed later while filing ITR

In simple words:

If tax paid is more than tax payable, you may get a refund.

But to claim it, your ITR needs to be filed correctly.

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Open the Spare8 app or continue through ClearTax’s Spare8 partner flow and complete your ITR before the deadline.

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When can you get an income tax refund?

You may get an income tax refund if excess tax has already been paid or deducted.

Common cases include:

• Your employer deducted more TDS than needed

• You forgot to submit investment proofs to your employer

• You claim deductions while filing ITR

• Bank deducted TDS on fixed deposit interest

• Advance tax paid was higher than actual tax liability

• You changed jobs and tax was calculated incorrectly

• Your final taxable income is lower than expected

A refund is not a bonus.

It is your own money coming back after tax calculation.

How to claim income tax refund while filing ITR

To claim a refund, you need to file your ITR correctly.

The basic steps are:

1. Collect your income and tax documents

2. Check Form 16, AIS and Form 26AS

3. Add all income sources

4. Claim eligible deductions

5. Claim tax credit for TDS and taxes paid

6. Add correct bank account details

7. Submit your ITR

8. E-verify your return

9. Track refund status

The most important part is accuracy.

If income, TDS, bank details or deductions are wrong, your refund can get delayed.

Step 1: Check Form 16

If you are salaried, Form 16 is usually your starting point.

It shows:

• Salary income

• Exemptions

• Deductions considered by employer

• Taxable salary

• TDS deducted from salary

• Employer PAN and TAN

• Employee PAN

But Form 16 mainly covers salary.

It may not include every income source you have.

Read this next: Form 16 Explained: Part A, Part B and How to Use It While Filing ITR

Step 2: Check AIS

AIS stands for Annual Information Statement.

It gives a wider view of financial information reported against your PAN.

AIS may show:

• Salary income

• Interest income

• Dividend income

• TDS

• TCS

• Tax payments

• Refunds

• Securities transactions

• Mutual fund transactions

• Certain financial transactions

If AIS shows extra income that you forgot to include, your refund calculation may change.

So check AIS before filing.

Step 3: Check Form 26AS

Form 26AS is your tax credit statement.

It helps you check whether TDS and other tax credits are visible against your PAN.

Form 26AS can show:

• TDS deducted by employer

• TDS deducted by banks

• TCS, if applicable

• Advance tax paid

• Self-assessment tax paid

• Refund details

If TDS is not visible correctly in Form 26AS, your refund may be affected.

Read: AIS and Form 26AS Explained: Why You Should Check Them Before Filing ITR

Step 4: Add all income sources

Do not file only based on salary.

Your total income may include:

• Salary

• Interest income

• Dividend income

• Rental income

• Freelance income

• Capital gains

• Business or professional income

• Other income

If you miss income while filing, your refund calculation may be wrong.

A higher refund does not matter if the return is incorrect.

Step 5: Claim eligible deductions

If you are filing under the old tax regime, you may be able to claim eligible deductions.

These can include:

• Section 80C investments

• Section 80D health insurance premium

• HRA exemption, if eligible

• Home loan interest, if applicable

• Education loan interest

• Donations, if eligible

• Other valid deductions

But only claim deductions you are eligible for.

Do not inflate deductions just to increase refund.

That can create problems later.

Read this if you are comparing regimes: Old Tax Regime vs New Tax Regime: Which One Should You Choose While Filing ITR?

Step 6: Claim TDS credit correctly

If TDS was deducted from your salary, bank interest or other income, you can usually claim credit for it while filing ITR.

This reduces your final tax payable.

If total TDS is more than your final tax liability, you may get a refund.

But make sure the TDS credit is actually visible and belongs to you.

Read: TDS Already Deducted? You May Still Need to File ITR

Step 7: Add correct bank account details

Your refund is credited to your bank account.

So bank details matter a lot.

Check:

• Account number

• IFSC code

• Bank name

• Account status

• Whether the account is active

• Whether the bank account is pre-validated

If your bank details are wrong or not validated where required, your refund can get delayed.

Why bank pre-validation matters

Bank pre-validation helps the tax department verify that the bank account belongs to you and can receive the refund.

The Income Tax Department says it is compulsory to pre-validate your bank account for refund processing.

So before filing, make sure your refund bank account is active and properly validated.

Do not leave this for later.

Step 8: Submit and e-verify your ITR

Filing your ITR is not fully complete until you verify it.

After submitting your return, you must e-verify it within the required timeline.

If you do not verify your return, it may be treated as invalid.

You can usually e-verify using methods such as:

• Aadhaar OTP

• Net banking

• Bank account EVC

• Demat account EVC

• Digital Signature Certificate, if applicable

Do not submit and forget.

Verify it.

When does refund processing start?

Refund processing usually starts only after your ITR is filed and e-verified.

If your return is not verified, your refund will not move properly.

After e-verification and processing, the refund is credited to your pre-validated bank account if everything is in order.

How long does income tax refund take?

Refund timelines can vary.

The Income Tax Department says refund processing usually takes around 4-5 weeks after the return is e-verified and processed.

But it can take longer if:

• Bank account is not validated

• ITR has mismatches

• Additional checks are needed

• Incorrect details were entered

• Refund failed due to bank issues

• There are discrepancies in income or tax credit

So if your refund is delayed, check your refund status and email/SMS updates from the tax department.

How to check income tax refund status

You can check refund status through the income tax e-filing portal.

Usually, you need to log in and check refund status from the relevant section.

You may also receive updates through email or SMS.

If the refund is delayed, check:

• Whether ITR is e-verified

• Whether return is processed

• Whether bank account is pre-validated

• Whether refund failed

• Whether any notice or intimation was issued

• Whether income or TDS mismatch exists

Do not panic immediately.

But do not ignore it either.

Common reasons your refund may be delayed

Your refund may get delayed because of:

• ITR not verified

• Wrong bank account details

• Bank account not pre-validated

• PAN-bank mismatch

• TDS mismatch

• AIS mismatch

• Incorrect income details

• Incorrect deduction claims

• Refund selected for additional checks

• Return not processed yet

Most refund delays come from basic filing and verification issues.

So review carefully before submitting.

What if your refund amount is lower than expected?

If your refund is lower than expected, check:

• Whether all TDS credits were claimed

• Whether TDS appears in Form 26AS

• Whether AIS shows extra income

• Whether deductions were allowed

• Whether bank interest was included

• Whether tax regime selection changed tax liability

• Whether any adjustment was made during processing

Sometimes the expected refund is wrong because the initial calculation missed some income.

So compare the final computation carefully.

What if your refund fails?

Refund failure can happen if:

• Bank account is closed

• Bank account is not validated

• IFSC is wrong

• Account number is wrong

• Name mismatch exists

• PAN is not linked or details mismatch

• Bank account cannot receive refund

If refund fails, you may need to correct bank details, pre-validate the account and raise a refund reissue request, depending on the process available on the portal.

Got your refund? Do not let it disappear.

An ITR refund can feel like surprise money.

But it is not free money.

It is your own money coming back.

So instead of letting it vanish into random spending, consider using part of it to build better money habits.

You can use your refund to:

• Build emergency savings

• Pay off small debt

• Start investing

• Add to your gold savings

• Set up a gold SIP

• Keep money aside for future tax payments

If you use Spare8, you can save in digital gold, set up a gold SIP or add to your gold balance from as low as small amounts.

File ITR through Spare8 x ClearTax

Spare8 users can now file their ITR online through ClearTax and unlock exclusive discounts.

This can help if:

• You want to claim refund correctly

• TDS was deducted but you are unsure what to do

• You need to check Form 16, AIS and Form 26AS

• You changed jobs during the year

• You have salary plus other income

• You have capital gains or investment income

ClearTax also offers expert/CA-assisted filing options where applicable, especially for users with capital gains or more complex income situations.

File ITR via Spare8 x ClearTax

Quick checklist to claim income tax refund

Before submitting your ITR, check this:

• Have you checked Form 16?

• Have you checked AIS?

• Have you checked Form 26AS?

• Have you included all income sources?

• Have you claimed eligible deductions only?

• Have you claimed correct TDS credit?

• Are your bank details correct?

• Is your bank account active?

• Is your bank account pre-validated?

• Have you e-verified your return?

• Have you checked refund status after filing?

If these are done, your refund process has a much better chance of moving smoothly.

FAQs

How do I claim an income tax refund?

You can claim an income tax refund by filing your ITR correctly, reporting all income, claiming eligible deductions and claiming credit for TDS or taxes already paid.

When do I get an income tax refund?

You may get a refund when the tax already deducted or paid is more than your final tax liability.

Is e-verification required for refund?

Yes. Refund processing starts only after the return is filed and e-verified. If the return is not verified, refund processing can be affected.

How long does income tax refund take?

Refund timelines can vary. The Income Tax Department says refunds usually take around 4-5 weeks after e-verification and processing, if everything is in order.

Why is my income tax refund delayed?

Refund can be delayed because of wrong bank details, bank account not pre-validated, TDS mismatch, AIS mismatch, ITR not verified, or return processing issues.

Do I need a pre-validated bank account for refund?

Yes. The Income Tax Department says pre-validation of bank account is compulsory for refund processing.

Can I get refund if TDS was deducted from salary?

Yes, if your final tax liability is lower than the TDS deducted, you may be eligible for a refund after filing ITR correctly.

Can Spare8 users file ITR through ClearTax?

Yes. Spare8 users can file their ITR through ClearTax using the Spare8 partner flow and unlock exclusive discounts.

Final word

Claiming an income tax refund is not just about hoping money comes back.

You need to file your ITR correctly, check Form 16, AIS and Form 26AS, claim correct TDS credit, add valid bank details and verify your return.

If excess tax was deducted or paid, your refund can be processed after your return is filed, verified and accepted.

Spare8 users can file their ITR through ClearTax and unlock exclusive discounts.

File ITR via Spare8 x ClearTax

Disclaimer: This article is for general educational purposes only and should not be treated as tax, legal or financial advice. Tax rules, refund timelines and filing requirements can vary based on your income, deductions and personal situation. Please consult a qualified tax professional or use ClearTax’s filing flow for your specific case.