Important Update for AY 2024-25: Changes in Tax Refund Process
As we approach the Assessment Year (AY) 2024-25, it’s crucial to stay updated on the changes in the tax refund process. In AY 2023-24, taxpayers had to select a bank account in their Income Tax Return (ITR) where they wanted their tax refund credited. This designated account must be pre-validated on the IT Portal to receive refunds.
However, for AY 2024-25, the option to select a bank account for the credit of refunds has been removed. Now, refunds will be credited to the taxpayer’s pre-validated bank account. If multiple bank accounts are pre-validated, the refund will be credited to one of those accounts.
To ensure you receive your tax refund without issues, verifying that your bank account is pre-validated and linked with your PAN is essential. Refunds can be issued to various accounts, including Savings, Current, Cash Credit, Overdraft, and Non-Resident Ordinary (NRO) accounts.
However, refunds cannot be issued to bank accounts that are closed, invalid, under litigation, or in blocked status. Therefore, checking the validation status of your bank accounts before uploading any ITR forms is crucial.
You can avoid delays and complications in receiving your AY 2024-25 tax refund by staying informed and ensuring your bank account details are up-to-date and pre-validated.
Important Update for AY 2024-25
In AY 2023-24, taxpayers selected a bank account in their ITR for refund credit, and it had to be pre-validated on the IT Portal. Starting from AY 2024-25, the option to select a bank account for refund credit has been removed. Refunds will now be credited to the taxpayer’s pre-validated bank account. If multiple pre-validated accounts exist, the refund will be credited to one of them.
Verify that your bank account is pre-validated and linked with your PAN to ensure a smooth refund process. Refunds can be issued to Savings, Current, Cash Credit, Overdraft, and Non-Resident Ordinary (NRO) accounts. Refunds cannot be issued to closed, invalid, under litigation, or blocked accounts. Check the validation status of your bank accounts before uploading any ITR forms.
Staying informed and ensuring your bank account details are up-to-date and pre-validated will help you avoid delays and complications in receiving your AY 2024-25 tax refund.