Once you file your ITR, you must always keep a tab on your ITR status, just to make sure that the ITR has been accepted and processed by the Income Tax Department as it is. Once a taxpayer has filed Income Tax Return they are supposed to verify it within 120days of filing Income Tax Return. In case a taxpayer fails to verify the return within 120 days, the taxpayer’s return will be considered in valid. In order to know about your ITR status here are a couple of terms that you must remember.
In case your ITR status says Outstanding Tax Demand, then it means the taxpayer has some tax liability and he/she is required to make the payment for the same. In such situations you are required to access the intimation issued by the Income Tax Department. under Section 143(1) to know the reasons for which the tax demand has been raised. The major reasons behind outstanding tax demand can be inter-alia, self-assessment tax not paid at the time of filing of return, additional deductions claimed in ITR, mismatch in tax credits etc.
2 Defective Income Tax Return
An ITR is considered defective when it is not filed according to the provisions of the law. In case your ITR is considered defective, then you will receive a notice under section 139(1) of Income Tax Act. You will have to rectify the defect in your ITR within 15days from the day of receiving notice.
3 Refund not determined
A taxpayer can only claim Income Tax Refund, when he/she files Income Tax Return. Once the ITR filing process is complete your refund will be processed. In case you status says Refund not determined, this means that your ITR is not yet processed by the Central Processing Centre or CPC, Bengaluru.