Tax Refund Explainer: From status and calculations to reasons for refund delays, get everything in one place...

If your Income Tax Refund hasn't arrived yet and you're Googling "When will the refund come?", you're not alone. Every year, millions of taxpayers have the same questions: how much will you get, when will it come, and why does it sometimes get stuck?

The truth is, a tax refund isn't magic, but a process based on simple calculations. The Income Tax Department refunds you the amount of excess tax you paid (in the form of TDS, Advance Tax, or Self Assessment Tax). However, this process involves numerous steps, rules, and verifications, which can lead to delays or even deductions.

In this detailed explainer, we'll explain in simple terms how a refund is calculated, how to check its status, the real reasons for a refund being delayed, and what to do to get it quickly.

First, understand: What is a Tax Refund?

Simply put: When you've already paid more tax to the government than you should have, the extra amount is called a tax refund. This extra tax is collected through the following means:

TDS (tax deducted from salary/bank)
Advance Tax
Self-Assessment Tax
TCS (tax deducted on certain transactions)
Calculation: The complete math of a tax refund

Step 1: Calculating Total Income

First, your total income is calculated:

Example:

Salary: ₹8,00,000

FD Interest: ₹50,000

Freelance Income: ₹1,50,000

Total Income = ₹10,00,000

Step 2: Deductions are subtracted

Now, tax exemptions on NPS and home loan interest are subtracted.

Example:

NPS: ₹1,00,000

Taxable Income = ₹1,000,000 – ₹1,000,000 = ₹9,00,000

Step 3: Tax Liability Calculated

Tax is now calculated based on the tax slab.

Let's say (New Regime Example):

Tax

Tax calculation on ₹9,00,000:

₹4–8 lakh = ₹20,000

₹8–9 lakh = ₹10,000

Total Tax = ₹30,000

4% Cess = ₹1,200

Total Tax = ₹31,200

Step 4: Comparison with Already Paid Tax

Now, we see how much tax you have already paid.

Tax Type Amount
TDS (Employer) ₹30,000
Advance Tax ₹5,000
Total Tax Deposited ₹65,000
Final Refund Calculation

Refund = Total Tax Paid – Actual Tax Liability
Refund = ₹35,000 – ₹31,200
Refund = ₹3,800

This means you will receive a refund of ₹3,800.

How to Check Tax Refund Status?
Method 1: From the Income Tax Portal

Go to incometax.gov.in

Login

“e-File” → “Income Tax Returns”

“View Filed Returns”

Status will show:

Refund Issued
Under Process
Failed
Pending Verification

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