Waiting for your tax refund can be frustrating, especially when it’s delayed. While the process is generally quick, a variety of issues can cause a hold-up. Here’s a breakdown of why your refund might be late and what you can do about it.
Thank you for reading this post, don't forget to subscribe!Common Reasons for a Delayed Refund
- Large Refund Amounts: While all refunds follow the same rules, a large refund claim may trigger additional verification checks by the Income Tax Department, which can extend the processing time.
- Data Mismatches: Discrepancies between the details you reported in your ITR and the information in Form 26AS, AIS, or TIS can cause the system to flag your return. The refund won’t be released until these mismatches are resolved.
- Unverified Returns: Your return must be e-verified within 30 days of filing. If you miss this deadline, your ITR is considered invalid and won’t be processed.
- Banking Issues: An unvalidated bank account, an account not linked with your PAN, or a mismatch between the name on your bank account and your PAN details can all lead to a failed refund.
- Outstanding Tax Dues: If you have outstanding tax dues from previous years, the department can adjust your current refund against those dues, which can delay or reduce the amount you receive.
- PAN-Aadhaar Linking: Problems with your PAN-Aadhaar linkage or high deduction claims that need review can also cause delays.
What You Can Do About It
If your refund is delayed beyond a few weeks of e-verification, it’s time to take action:
- Check Your Status Online: Log in to the Income Tax e-filing portal. Go to “e-File” > “Income Tax Returns” > “View Filed Returns” to check the status of your refund.
- Pre-validate Your Bank Account: Make sure the bank account where you want to receive the refund is pre-validated on the portal and that all details are accurate.
- Respond to Notices: Check your email and the e-filing portal dashboard for any notices from the department regarding data mismatches. Promptly respond to these to clear any issues.
- File a Grievance: If the issue persists, you can file a formal online grievance under the “Refund” category on the e-filing portal. You’ll receive an acknowledgment number to track the complaint.
- Contact the Helpline: For further assistance, you can contact the CPC helpline using your PAN details.
Interest on Delayed Refunds
If the delay is due to the Income Tax Department’s processing time, you may be entitled to interest. According to Section 244A of the Income Tax Act, the department pays an interest of 0.5% per month or part of a month on the refund amount. This interest is calculated from April 1 of the assessment year for refunds from TDS, TCS, or advance tax.
By being proactive and addressing any potential issues flagged by the department, you can significantly reduce the wait time and get your refund credited faster.
