The actions to take if your ITR gets delayed
Are you left wondering about the status of your income tax refund? Why let uncertainty cloud your mind? Let me bring you the answers you seek and help clear up any confusion about the status of your ITR.
ITR refunds allow you to get back any excess taxes you may have paid. An income tax refund equals the difference between the total tax paid for a given year and the total tax liability for that year.
You do not need to go through a separate process to claim an income tax refund. Simply filing your tax returns is enough. If you are eligible for a tax refund, whether it be for TDS, double-taxation, or any other reason, the most important thing is to make sure that you file your taxes correctly and verify them. It is necessary to remember to file your taxes before the deadline. For individuals, the deadline is typically July 31st.
If your income tax return has been processed, but the refund has not yet been issued, the status will be shown as "Processed with a refund due".
Usually, after ITR gets processed, the Income tax department takes between 20 to 45 days to refund.
If your refund has not yet been received, you can check its status by logging into the income tax e-filing portal. Here are the steps to follow:
1) Proceed to the income tax e-filing portal and log in using your login credentials.
2) Go to "e-File". From there, go to "Income Tax Returns" and finally click on "View Filed Returns."
3) To check the refund status, go to the appropriate assessment year for which you want to view the status. The status of your refund will get displayed in a new window, accompanied by relevant information.
LET US LOOK INTO THE CLASSIFICATION OF THE REASONS BEHIND THE DELAY/REJECTION IN YOUR RETURNS
1) For when you miss out on including the deductions you are eligible for
If the Income Tax Department has not yet started processing your return, you can revise it and include any missed deductions for which you are eligible.
2) The IT department implies that you owe them taxes if your refund request gets rejected.
You may receive a notification from the department indicating the amount of taxes still owed. In this scenario, thoroughly review all your records and re-calculate the tax liability and expected refund.
If the figures you have submitted in your return are accurate, file a corrected return under Section 139(4) with evidence supporting your claim. If the income tax return gets evaluated incorrectly, pay the outstanding tax amount requested by the department within the time frame specified in the notice.
3) The bank account information provided to the Income Tax Department during the filing of the return gets changed
If the refund cannot be credited to your bank account, you can resolve the issue by submitting a grievance on the income tax portal. In some cases, the Income Tax Department may ask you to request a refund reissue.
Alternatively, it may request that you provide the updated bank information along with other necessary information via email at email@example.com. The required information includes:
A scanned copy of your PAN
Your contact information (name, date of birth/incorporation, phone number)
A scanned copy of a government-issued ID such as a passport, voter card, driver's license, or Aadhaar card
A screenshot of the error message
The helpdesk ticket number (grievance acknowledgment number).
4) For when your refund request is under process
It is important to ensure that you have electronically verified your return and sent the ITR-V within 120 days from the date of e-filing. Note that for returns filed on or after August 1st, 2022, the e-verification time limit has been reduced to 30 days from the date of e-filing.
Please note that if you have not met the e-verification time limit, you will need to revise your return and send the updated acknowledgment to CPC Bengaluru.
Additionally, make sure that your bank account is pre-validated on the e-filing portal, and check if the IFSC code is valid.
Additionally, the process of processing physical tax return forms takes time. It is recommended to wait for the IT department to complete its review and reconciliation of the physical paperwork before checking for updates on the status of your refund.
To double check, if you have received your returns, you should make sure that your status says ‘refund issued’. You shall find all the refund details below the status.
There's some good news too!
According to Section 244A of the Income Tax Act, if the payment of your income tax refund is delayed due to any issues at the Income Tax Department, you are eligible to receive interest on the refund.
If the total refund amount is equal to or greater than 10% of the tax paid, the government is obligated to pay interest on the refund. The IT department will pay interest at a rate of 0.5% from April 1st to the date the refund is granted, as long as you have filed your returns before the deadline. However, if the total refund amount is less than 10% of the tax, no interest will get paid.
Timeliness and accuracy are key to filing for an income tax refund. It's crucial to double-check the details of every document submitted to avoid any complications. With the right guidance, compliance doesn't have to be a hassle. Let's streamline the process and minimize any delays.