top of page

File Your ITR now

FILING ITR Image.png

The actions to take if your ITR gets delayed

Updated: Feb 1


The actions to take if your ITR gets delayed
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.

 

Table of content

 

Experiencing a delay in receiving your income tax refund can be disconcerting, and understanding the potential reasons behind the delay is crucial. Common scenarios could contribute to a delayed tax refund and the corresponding actions to address each situation.


Ensure all the details provided during the tax filing process are accurate and complete. Any discrepancies, such as mismatched names or incorrect bank information, can lead to delays. Review your tax return thoroughly and make necessary corrections through the appropriate channels.


Refund request rejection

If your refund request is rejected by the Income Tax (IT) department, it might be due to a computed tax liability. The department may issue a notice specifying the amount owed in such cases. To rectify this, file a rectification return under Section 139 (4) to explain. If the discrepancy is due to inaccuracies in your initial tax return, promptly settle the outstanding demand within the stipulated timeframe.


  • Incorrect bank account number

Entering an incorrect bank account number during the tax filing process can lead to refund complications. It's crucial to verify and rectify any inaccuracies in the bank account details provided.

  • Bank account not pre-validated

Refunds are exclusively credited to pre-validated bank accounts. Ensure your bank account is pre-validated on the income tax e-filing portal to facilitate the refund process.


  • A mismatched name in bank account

The name on your bank account must precisely match the name on your tax return. Any disparity can result in the refund being returned to the Income Tax Department (ITD). Review and align the names to prevent such issues.


  • Changed bank account details

If your refund couldn't be credited due to changed bank account details, navigate to the income tax portal to file a grievance. In certain instances, the IT department may guide you to submit a refund reissue request. Alternatively, they may request updated bank details, along with other necessary information, to be sent via email to form@cpc.incometax.gov.in


In navigating these situations, timely and accurate responses are pivotal. Stay vigilant about the details provided during the tax filing process. Promptly addressing any issues that arise can significantly contribute to expediting the refund process. It's recommended to regularly check the status of your tax refund on the income tax portal and take the steps outlined above to resolve any delays effectively.


What does the term 'Income Tax Refund' mean?

When you do your taxes, you tell the government how much you earned and spent. If you gave them more money than you had to, they would refund the extra money as a refund. Just finish filing your taxes online to get it. 


Once the Income Tax Department processes your tax return and confirms the extra payment, it initiates a refund. Once your pre-validated bank account, as registered on the income tax e-filing portal, is confirmed, the funds are transferred to it. This streamlined procedure guarantees the prompt return of any excess taxes you may have paid. Monitor your tax return status diligently and ensure the accuracy of all e-filing details for a seamless and timely refund process.


Resolving Delayed Income Tax Refunds

If your tax refund is taking longer, check for any issues with your refund request. If rejected, file a rectification return and pay outstanding tax. Verify that your bank details are accurate and have been pre-verified. Ensure that the name on your bank account matches the information on your tax return. If you need to update your address, you can do so by raising a grievance or requesting a refund reissue. 


Stay updated on your refund status, communicate with the tax department, and follow their guidance. If delays persist, consider consulting a tax expert. Keeping your details accurate expedites the refund process.


How to Confirm Your Income Tax Refund Status

To confirm your income tax refund status, you can follow these steps:

  • Visit the Income Tax e-filing website: Go to the official Income Tax e-filing website (https://www.incometaxindiaefiling.gov.in/).

  • Login to Your Account: Log in using your credentials. If you don't have an account, you need to register.

  • Check Refund/Demand Status: Click the 'View Returns/Forms' option after logging in. Select 'Income Tax Returns' and the assessment year. You will see a tab for 'Refund/Demand Status.' Click on it.

  • View Refund Status: The refund status will be displayed, indicating whether it is processed, under process, or if any issues are causing a delay.

  • Check Refund Status Offline: If you prefer offline methods, you can check the status by calling the CPC Bangalore helpline at 1800-425-2229 or 080-22546500.

  • Use the SMS Service: You can also check your refund status via SMS. Send an SMS to 567678 or 56161 in the format 'UIDPAN (space) <Your PAN>'.

  • Contact Customer Service: If you face issues or need clarification, contact Income Tax Customer Care at 1800-103-4455.

Simply follow these steps to check your income tax refund status. If there are delays or issues, contact the Income Tax Department or seek help from a professional. Stay proactive in ensuring a smooth process for your tax refund.


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 efilingwebmanager@incometax.gov.in. 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.


Conclusion

In conclusion, encountering delays in receiving your income tax refund can be a source of concern, but understanding the potential reasons and taking proactive steps is crucial. Whether it's rectifying a rejected refund request, ensuring accurate bank details, or addressing issues with name mismatches, timely and accurate responses are pivotal. Regularly monitoring your refund status and following the outlined steps will contribute to a smoother and more efficient resolution. Remember, staying informed and proactive is crucial in effectively navigating and resolving any delays in your income tax refunds. Stay informed with TaxBuddy for practical assistance in navigating these challenges.


Frequently Asked Questions

Q1 Why is the income tax refund getting delayed?

Income tax refunds may be delayed due to rejection, incorrect details, or scrutiny. Ensure accurate filings and promptly address any issues to expedite the refund process.


Q2 How many days will the tax refund be credited?

Refund days vary; ensure pre-validate bank details for timely processing. Confirm accurate information to avoid delays and regularly check the refund status on the income tax portal.


Q3 How do I check my refund status?

Check the refund status on the income tax portal or via SMS. Log in, select 'View Returns/Forms,' and click on 'Refund/Demand Status' to track your refund easily.


Q4 Is ITR processing delayed for 2023 24?

ITR processing times may vary; stay updated on the income tax portal. Regularly check the status to stay informed and address any issues promptly.


Q5 What happens if the income tax refund is not credited?

If not credited, verify details, raise grievances, or contact the income tax department. Ensure bank details are accurate, pre-validated, and aligned with your tax return.


Q6 Can we track the ITR refund status?

Track ITR refund status online through the income tax portal. Use the portal's user-friendly features to stay informed about your income tax refund quality.


Q7 What steps can I take to maximize my tax refund in India?

Maximize tax refunds by claiming eligible deductions and exemptions. Understand tax laws, stay informed about available deductions, and optimize your filings for maximum refunds.


Q8 What is the purpose of income tax refunds?

Income tax refunds aim to reimburse excess taxes paid by taxpayers. It ensures taxpayers receive back any amount they overpaid during the tax year.


Q9 How can I verify my ITR refund using my PAN number?

Verify the ITR refund using your PAN on the income tax portal. Utilize the PAN-based verification process to confirm the status of your income tax refund efficiently.


Q10 What can I do to expedite my ITR refund?

Expedite ITR refund by ensuring accurate details, timely filings, and communication with the tax department. Stay proactive, address any issues promptly, and follow the prescribed procedures to expedite your income tax refund.