Income Tax Refund: Reasons and Solutions for Delayed ITR Refunds

If you haven’t received your Income Tax Refund (ITR), there could be several reasons for the delay. It’s important to investigate these possibilities to determine the cause of the delay and take appropriate action.

1. Keep Track of Communication

Firstly, keep track of any communication from the IT Department and respond promptly if they request additional information or verification.

2. ITR Processed By Income Tax Department

The Income Tax Department usually takes a few days to process an ITR. If it has been a long time since you filed your ITR, you can check the status of your refund on the ITD website. A refund is issued only after the income tax return is processed.

3. ITR Refund Eligibility

You will only receive an Income Tax Return refund if the Income Tax Department verifies your eligibility for it upon processing your income tax return. Once they confirm your eligibility, the refund is typically credited within four weeks.

4. Bank Account Details

For an ITR refund to be processed, it’s essential that your bank account is pre-validated, otherwise, the refund won’t be issued. Additionally, it’s crucial that the name registered in your bank account matches the details on your PAN card. The refund will be credited to the bank account that you have mentioned in your ITR. If the account details are incorrect, you will not receive the same.

5. E-verification of ITR

Verifying/E-verifying your income tax return is a mandatory requirement in the process of filing an ITR and for receiving a refund. You must complete the e-verification process within 30 days of filing your ITR. Therefore, e-verify your ITR within the given time. This will help to speed up the processing of your refund.

6. Outstanding Demand

In the event of having any unresolved dues from the previous fiscal year, your income tax refund might face delays. In such cases, your refund will be utilized to settle those dues. You will be duly notified about this through an intimation notice.

7. Return Under Scrutiny

Some returns are selected for scrutiny by the Income Tax Department to ensure accuracy and compliance. If your return is under scrutiny, the refund might be delayed until the assessment is complete.

8. Mismatch in Form 26AS

Form 26AS is a consolidated statement of all taxes paid against your PAN. If there is a discrepancy between the TDS (Tax Deducted at Source) details in your return and the TDS details in Form 26AS, it can lead to a delay in refund.

9. Technical Reasons

Sometimes, refunds might get delayed due to technical reasons such as server issues or backlogs. In such cases, you can contact the ITD helpline for more information. If the delay persists or you’re facing complex issues, consider seeking assistance from a tax professional or Chartered Accountant.

By addressing these common reasons for delayed ITR refunds, you can ensure a smoother income tax refund process.