New Delhi, Aug. 5 -- An income tax refund is issued when the amount of tax paid by a taxpayer, through TDS, TCS, advance tax or self-assessment tax, is higher than the actual tax liability calculated after considering all eligible deductions and exemptions.

The final tax liability is determined by the income tax department during the processing of income tax return (ITR) for the relevant assessment year. Those who filed their ITR well ahead the July 31 deadline may have already received their refund, while many others can expect the credit to arrive soon.

However, even if an ITR has been marked as "processed", the refund may not be credited immediately. Refund processing by the tax department begins only after the taxpayer e-verifies th...