Restricted Refund in ITR: A Detailed Guide
- Asharam Swain
- Sep 17
- 4 min read
In India, every taxpayer looks forward to receiving their tax return. Refunds are processed by the Indian government following the filing of your tax returns. Following processing, the refund is typically issued within 21 working days, according to IRS (Indian Revenue Service) guidelines. If you do not receive your returns within the allotted time, there may be a number of reasons why. It is advised that you verify the status of your income tax refund online before you panic. The following errors may be the reason for not getting the refund after filing your ITR:
Table of Contents
Understanding the Restricted Refund Status on Income Tax Portal
Many tax filers come across the “Restricted Refund” status in the bank account section on their profile dashboard in the Income Tax portal. If your bank account name and the name linked to your PAN are different, this error will appear. Make sure both records are consistent in order to fix this problem. It could be necessary for you to change your name on your PAN or your bank's records. Here are the steps to follow to understand this issue and address it.
Step 1: Click the three dots and choose "View Bank Account Details" to see why this status exists.
Step 2: Refer to “Remarks” A name discrepancy between the PAN and bank records is frequently the cause of this condition. Having the same name on both documents is mandatory.
Step 3: You can fix this by changing your bank name or PAN. In practice, it takes a lot less time to update a person's name in bank records than it does on a PAN.
PAN - Bank Account - IFSC Linkage Failed
You must submit a pre-validate request for pre-validating a bank account. Following the submission of the request, the bank details are compared with your contact information, including your PAN. Your bank account is authenticated once the bank confirms the information. On the other hand, the error "PAN - Bank account - IFSC linkage failed" will be seen if the Bank's database does not contain your PAN. For example, during the e-KYC process, you established a bank account using only your Aadhaar card and not your PAN information. In that scenario, the bank will not verify your PAN. As a result, you will need to add your PAN information and update your KYC with the bank. To fix this mistake, then re-validate your bank account on the portal.
Validation in Progress Error
On the Income Tax Portal, bank validation occurs nearly instantaneously. However, some consumers encounter validation delays, especially when dealing with small or cooperative banks. For integrated banks, validation happens more quickly. For quicker validation, consider adding a bank account from the list of connected banks:
Axis Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
City Union Bank
Federal Bank
HDFC Bank
ICICI Bank
IDBI Bank
Indian Bank
Indian Overseas Bank
IndusInd Bank
Jammu and Kashmir Bank
Karur Vysya Bank
Kotak Mahindra Bank
Punjab National Bank
Punjab & Sind Bank
RBL Bank
State Bank of India
UCO BANK
Union Bank of India
Bank Account Errors on Income Tax Portal
Error
| Possible Reasons
| Solution
|
Restricted Refund | Name mismatch between the Bank and PAN | Update either the name in bank or on PAN since same name should be listed at both places |
PAN - Bank account - IFSC linkage failed | PAN is not available with bank | Contact your bank branch to link your PAN with your account or update KYCSubmit a re-validation request |
Account number does not exist | Incorrect account number is entered | Click Re-ValidateEnter the correct bank account numberSubmit re-validation request |
Invalid IFSC | The IFSC code may change in case of bank mergers | Click Re-ValidateEnter the correct IFSCSubmit re-validation request |
Bank account closedInactive or zero balance accountAccount frozen/blockedLitigated Account | Unusable bank account | Click Re-ValidateTry a different bank account number |
Conclusion
Since it takes longer to process refunds, most people now choose to have their tax refunds deposited straight into their bank accounts rather than receiving paper checks. However, you must accurately enter the bank information to guarantee that you receive your online income tax refund right away. Simple errors like giving the wrong bank account number or misspelling the name might result in the refund being delayed by weeks or even months.
FAQs
What does restricted refund error mean?
When the name on your bank account and the name linked to your PAN are different, this issue occurs. Verify that both names are the same to address this issue. Your name may need to be updated in your bank records or on your PAN.
Why is the income tax refund delayed?
If the e-verification of your ITR has not been done, this may be the reason for delayed refund. There may also be the case when refund is not credited even after the ITR has been submitted and e-verified. You will have to file a grievance through the e-filing portal to address the concern.
My income tax refund is not processed. How do I escalate this?
If the reimbursement is pending after e-verification, you can contact CPC by calling their hotline at 1800 103 0025, 1800 419 0025, or 080-61464700, which is open Monday through Friday from 8:00 am to 8:00 pm. You can also use the e-filing portal to file your complaints.
When will we get an income tax refund?
After the CPC processes the ITR, refunds are issued 20–45 days later.
What is validation in progress for bank account?
Users with bank accounts with 'Validation in progress' status can designate them for a refund and file their ITRs without waiting for confirmation. If there is a refund, it won't be credited until the bank has completed validation.
How much time does validation in progress take?
Within ten to twelve working days, your e-Filing account is updated with the validation status.
How to submit ITR after validation?
A signed hard copy of your ITR-V must be sent by speed mail within 30 days to the Centralised Processing Centre, Income Tax Department, Bengaluru 560500, if you choose to Verify via ITR-V. In order for any refunds that are due to be credited to your bank account, please ensure that you have pre-validated it.
