Your income tax refund for FY 2024-25 might be delayed, even if you filed early. Many taxpayers are still waiting for their refunds to be processed. Here’s a breakdown of the key reasons why this is happening.
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- Enhanced Verification: The Income Tax Department is implementing stricter scrutiny, especially for returns claiming large refunds, high deductions, or exemptions. These returns are undergoing detailed checks to prevent fraudulent claims.
- Complex Filings: Simple, salaried returns are typically processed within a few weeks. However, if your return involves complex factors like capital gains, business income, foreign assets, or substantial deductions, it will take longer due to enhanced compliance checks. Self-employed professionals and NRIs are often affected by this.
- Data Mismatches: Discrepancies between the data in your ITR and information from other sources like Form 26AS or your Annual Information Statement (AIS) can cause delays. This includes issues with TDS credits or mismatched income details.
- Incorrect Bank Account Details: Your refund can’t be processed if your bank account isn’t pre-validated and linked with your PAN. Delays also occur if your account details are incorrect, the account is inactive, or the name on the account doesn’t match your PAN.
- Outstanding Tax Dues: In some cases, your current refund might be adjusted against any outstanding tax liabilities you have from previous years before it is credited to your account.
What to Expect
While straightforward returns should be processed once verification is complete, complex filings will continue to take longer. You can always check the status of your refund on the Income Tax Department’s official e-filing portal.
