My Income-tax refund is less than expected?

Taxpayers receive Income-tax refund and many times it is less than expected. Let us understand why this may have happened. This issue may arise due to several reasons, some of them are explained below-

  1. It might happen that Income-tax Department has adjusted your tax refund of current Financial year with any Income-tax payable of previous Financial year/s. Income-tax department has power to adjust the refund U/s. 245 of the Income Tax Act,1961. To know more on “How to tackle with notice under section 245”, click here.
  2. You might have received less refund because there is mismatch in your Income-tax credit. Mismatch in Income-tax credit means the credit of TDS, Advance tax, Self-Assessment tax claimed in your return does not match with Form 26AS. What should be done in the following case? Follow this procedure-

A.  Login to incometaxindiaefiling.gov.in

B. Click on “My Account” and go to “Tax credit mismatch” option.

C. In case you agree with the mismatch, you need to file a rectification return correcting the mismatch of TDS credit.

D. In case, you do not agree with the mismatch, you will have to prove it to the Income-tax department that the tax credit claimed is correct. For this  the deductor has to reconcile the TDS entries and to revise the TDS return filed by them. As soon as the deductor revises his TDS return, you can request Income-tax department to update your TDS details so that TDS mismatch can be resolved.

In case you need any help in filing a response to any notice , please consult our tax experts. Also, if you have any Income tax related query, raise a ticket to us using myITreturn mobile app or mail us at myitreturn@skorydov.com.

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My Income-tax refund is less than expected?
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Taxpayers receive Income-tax refund and many times it is less than expected. Let us understand why this may have happened. This issue may arise due to several reasons, some of them are explained below-
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myITreturn
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