Income Tax Refund: If you haven’t received Income Tax Refund after filing the ITR, various factors may account for the delay. It’s essential to explore these potential reasons to ascertain the cause of the delay and then proceed with the necessary steps. The Income Tax Department has recently highlighted that numerous instances exist in which ITRs have been processed, and refund amounts have been calculated. However, the department faces challenges in issuing these refunds because some taxpayers have yet to verify their designated bank accounts for the refund disbursement.
The IT Department has asked taxpayers to validate their bank accounts through the e-filing portal.
With over 6 crore of verified ITRs processed, the IT Department has processed about 88% of the verified ITRs for AY 2023-24 as on September 5. More than 2.45 crore refunds for AY 2023-24 issued.
Also, the average processing time of ITRs (after verification) reduced to 10 days.
Your refund can only be credited into a validated bank account. Check bank account validation status on the e-filing portal with the following steps;
Visit http://incometax.gov.in;
- Login
- Profile
- My Bank Account
- Revalidate/Add Bank Account
Previously validated bank accounts may require updation and re-validation due to change in bank account details.
There are a few key reasons why you might not have received your ITR refund. Here are some of the most common reasons of not receiving tax refund after filing ITR;
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.
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.
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.
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.
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 utilised to settle those dues. You will be duly notified about this through an intimation notice.
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.
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.
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.
