Tax Refund Calculator
Filing a return is mostly arithmetic reconciliation: the tax the year actually required, set against everything already cut or paid in advance. When credits exceed the liability the department returns the difference, and when they fall short the balance becomes payable with the return. This calculator settles that question in one screen, with the full breakdown behind the headline.
Applies to FY 2025-26Last updated 12 Oct 2026
Enter values
Results
- Additional tax still to pay
- ₹15,000.00
- Paid so far (TDS + advance tax)
- ₹1,05,000.00
- TDS deducted
- ₹80,000.00
- Advance tax paid
- ₹25,000.00
- Tax liability for the year
- ₹1,20,000.00
How is the Tax Refund calculated?
Enter three numbers — total tax liability for the year after deductions and rebate, TDS deducted by every payer, and any advance tax you paid yourself. The calculator totals the credits, compares them with the liability and reports the position: refund due, additional tax payable, or settled. The rows underneath show TDS, advance tax, the combined credit and the liability that produced the result.
Formula
Balance = (TDS + advance tax) − total tax liability. A positive balance is a refund, a negative balance is tax still due at filing, and zero means the account settles. Refunds carry interest at 0.5% a month under section 244A; dues attract the usual 1% monthly interest.
Example
A liability of ₹1,20,000 against ₹80,000 of TDS and ₹25,000 of advance tax leaves ₹15,000 still to pay when the return is filed. Lower the liability to ₹90,000 with the same credits and the same arithmetic delivers a ₹15,000 refund instead. Section 244A then adds 0.5% a month on that refund, so ₹15,000 earns roughly ₹75 for every month the department holds it.
Things to remember
Before filing, match these figures with Form 26AS and the AIS so every TDS credit is in your favour. Refund and interest rules here follow FY 2025-26 — check the latest budget before filing, and remember refunds arrive only after the return is verified.
Frequently Asked Questions
How do I know if I will get a tax refund?
Add up TDS from every payer and any advance tax paid, then compare with the final liability. If the credits are larger, the difference is your refund — this calculator returns it as the headline figure, along with the rows that built it.
Do I earn interest on a tax refund?
Yes. Section 244A grants 0.5% a month from the month the tax was paid to the month of refund, provided the refund exceeds 10% of your total income. Smaller refunds are settled without that interest component.
Why did my refund shrink after processing?
The department can adjust it against outstanding demands from earlier years, or against income it believes was left out of the return. The revised figure arrives in the intimation under section 143(1), with a reason code beside the change.
Can I get a refund without paying advance tax?
Yes. Refunds usually come from TDS that exceeded the real liability — deductors commonly cut 10% on interest or rent while the recipient's slab rate is lower, so credits overshoot even with no advance tax paid at all.
Related Calculators
- Income Tax CalculatorIndian TaxEstimate your FY 2025-26 income tax in either regime, with slab-wise tax, the 87A rebate, cess and the rate you pay.
- TDS CalculatorIndian TaxWork out TDS deducted on salary, rent, interest, contractor bills and professional fees under FY 2025-26 rates.
- Advance Tax CalculatorIndian TaxSplit your estimated FY 2025-26 tax into the four instalments due on 15 June, 15 September, 15 December and 15 March.
- Salary CalculatorSalary & CareerTurn annual CTC into gross monthly pay, PF, professional tax and new-regime tax, down to the in-hand salary that reaches your bank.