Tax Refund Calculator 2025-26
Calculate your income tax refund for FY 2025-26. Compare your tax liability with TDS deducted and advance tax paid to determine if you're eligible for refund or additional tax payment.
Deductions
Tax Refund Expected
₹8.20 K
Tax Liability: ₹1.12 L
Taxable Income
₹9.75 L
Tax Paid
₹1.20 L
Tax Paid vs Tax Liability
Detailed Tax Calculation
Income & Deductions
Tax Calculation
Refund Process Timeline
File ITR
Submit your income tax return with all required documents
Verification
E-verify your return or send signed ITR-V within 120 days
Processing
IT department processes your return and calculates refund
Refund Issue
Refund is issued to your bank account via ECS/Direct Credit
Filing Best Practices
- File return early to get refund faster
- Use pre-filled ITR from income tax portal
- Verify bank account details in IT portal
- Keep all supporting documents ready
Common Mistakes to Avoid
- Incorrect bank details leading to refund failure
- Missing e-verification within 120 days
- Claiming incorrect deductions or exemptions
- Not reconciling Form 16 with TDS certificates
Income Tax Refund Process Timeline
File Income Tax Return (ITR)
Submit your ITR online through income tax e-filing portal before the due date. Ensure all income sources, deductions, and tax payments are accurately reported.
Timeline: Before July 31st for salaried individuals (may be extended)
Required: Form 16, investment proofs, bank statements
Verify Your Return
E-verify your return using Aadhaar OTP, Net Banking, or send signed ITR-V to CPC Bangalore. Verification must be completed within 120 days of filing.
Timeline: Within 120 days of filing ITR
Methods: Aadhaar OTP, Net Banking, Demat Account, Bank Account
Processing by Income Tax Department
IT department processes your return, calculates actual tax liability, and compares with tax paid. Automated processing generates demand or refund determination.
Timeline: 30-45 days after verification
Status: Check on e-filing portal under "View Returns/Forms"
Refund Issuance
If eligible, refund is issued directly to your bank account via ECS/NEFT. Ensure correct bank details are updated in your IT portal profile.
Timeline: 15-30 days after processing completion
Method: Direct bank credit through ECS/NEFT
Common Tax Refund Scenarios
Excess TDS Deduction
When employer deducts more TDS than actual tax liability, especially common with job changes, variable income, or higher deductions.
Example: Tax liability ₹50,000, TDS deducted ₹75,000 → Refund ₹25,000
Advance Tax Overpayment
Business owners or professionals who paid excess advance tax based on estimated income but actual income was lower than projected.
Example: Advance tax ₹1L, actual liability ₹70,000 → Refund ₹30,000
High Deductions Claimed
Individuals with significant Section 80C, 80D deductions, home loan interest, or other exemptions reducing tax liability below TDS deducted.
Example: TDS ₹60,000, but deductions reduced liability to ₹30,000
Mid-Year Job Change
When changing jobs mid-year, both employers may deduct TDS assuming full year employment, leading to excess TDS deduction.
Tip: Submit investment proofs and Form 12BB to new employer
Capital Loss Setoff
Capital losses from equity, mutual funds, or real estate can be set off against capital gains, reducing overall tax liability.
Note: Only like losses can offset like gains (STCL vs STCG)
Multiple Income Sources
Having multiple income sources (salary, freelancing, investments) with TDS deducted separately may result in excess tax payment overall.
Solution: File ITR to consolidate all income and claim appropriate refund
Tax Refund Filing Checklist
📋 Documents Required
✅ Pre-Filing Checklist
Troubleshooting Refund Delays
🏦 Bank Account Issues
- • Verify bank account number and IFSC code
- • Ensure account is active and not frozen
- • Check if account name matches PAN name
- • Update details in IT portal if changed
- • Prefer salary account for faster processing
📄 Return Processing Issues
- • Check if return is verified within 120 days
- • Ensure all mandatory fields are filled
- • Verify calculation accuracy
- • Check for any pending notices
- • Respond to any IT department queries promptly
⏰ System and Timing Issues
- • Peak season processing delays (Apr-Aug)
- • Technical issues in IT systems
- • High volume of returns filed
- • Random selection for detailed scrutiny
- • Wait for automatic processing completion
Financial Calculator FAQs
Everything you need to know about income tax calculations
Need More Help?
Financial planning requires careful consideration of various factors. Consider consulting with a financial advisor for personalized advice based on your specific situation.
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