Many people are ignorant about the fact that their tax-refund status can be easily ascertained online with a few simple steps. The ‘Refund Banker Scheme’, which was first introduced by the Income-Tax Department in January 2007, can be used by taxpayers to view the exact status of their refunds online at the site, https://tin.tin.nsdl.com/oltas/refundstatuslogin.html. This is as easy as it gets and all one needs to do is to enter his PAN and the assessment year on the site to access the current position of the tax refund.

Modes of Refund

Tax refunds are made through two different means:

RTGS / NECS:? To enable direct credit of the refund amount to the bank account of the taxpayer, the taxpayer?s correct bank account (at least 10 digits), the MICR/ IFSC code of the bank branch and the communication address is mandatory.

Paper Cheque:?The standard paper cheques, wherever issued, require the current bank account number and the address of the taxpayer as mandatory information.

Checking Status Online

This simple task can be achieved through a few easy steps: Log in to https://tin.tin.nsdl.com/oltas/refundstatuslogin.html and enter your PAN and assessment year. Then, click on the ?submit? button. The same can also be checked through the toll-free number of the SBI helpdesk (18004259760),?or even through email (itro@sbi.co.in or?refunds@incometaxindia.gov.in). (Online refunds are faster and quicker if returns have been filed on time and, preferably, through the online filing system).

Income-Tax Refund: Types of Status Online

While checking your refund status online, you are likely to see several kinds of status messages on the website. Demonstrated below are some of the common types of status messages that may appear at the website. Other status messages depending on the actual state of processing and disparities noticed by the department may also appear. The assessee has the right to appeal and notify the department in case of any discrepancies.

Change of Address: If the address of the assessee has changed and it has not been notified to the Income-Tax Department through the online registration system, the refund cheque is normally returned and this is reflected in the status at the website. Such cases are quite common despite the fact that the refund cheques are dispatched on time by the department.

Cheque Encashed Status: If the assessee has received the refund cheque and has encashed it, then the status at the website will reflect the same. However, if the cheque has actually not been encashed, but is being reflected as so at the website, then one needs to immediately inform the department and take steps to retrieve the money at the earliest.

Important Facts about

There are a few essential facts that one needs to understand while checking tax-refund status online:

The Income-Tax Department has nominated the State Bank of India as the refund manager agency for all such transactions. Thus, it is SBI that forwards all the refund cheques or makes online transfers.

RTGS/ NECS/ ECS transfers are possible only if the 10-digit account number has been correctly provided by the assessee, along with the IFSC code of the bank. Otherwise, standard cheques or demand drafts will be dispatched to the address provided by the assessee.

The online status is updated for viewing only after 10 days of the assessing officer having made the refund either online or by dispatching the cheque. The refund status will be available only if tax returns have been filed correctly and on time, and have been received by the department. This is possible only if the assessee has received an acknowledgement form from the department.

Using the online facilities of the Income-Tax Department is a great relief, both in terms of filing the returns and checking the status of refunds. The processing time is considerably lower in the online system.