There exists a vast difference between the both, and the difference encompasses mainly in the concept, which is explained below:
Income Tax Return: It is a kind of form that needs to be filed by the taxpayer with the Income Tax Department to make the department aware of the total income earned in a particular financial year, along with claiming exemptions and deductions and calculation of the total tax liability for the year. The individuals annually file this, firms, companies and anyone with taxable income.
Income Tax Refund: This is a payment that the Income Tax Department makes to the concerned taxpayer. This is done when a taxpayer's paid amount of tax exceeds the required payment of yearly tax liability. The excess amount as the refund is paid back by the department of Income Tax to the taxpayer.