New Delhi, July 2 -- Many taxpayers calculate the income tax refund they expect while filing their Income Tax Return (ITR) based on the tax paid and deductions claimed during the financial year. However, the refund amount reflected in the return is only a self-assessment and is not the final amount that the Income Tax Department is required to pay.

Before issuing a refund, the department processes the return under Section 143(1) of the Income-tax Act and verifies the details reported by the taxpayer with information available in its records. If it finds discrepancies or makes adjustments permitted under the law, the refund credited to the taxpayer's bank account may be lower than the amount originally claimed.

So, why does this happen, ...