ITR Refund Delayed? Top Reasons and How to Fix Them

Why Your ITR Refund is Delayed: Key Reasons and What to Do Now

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Many taxpayers in India are frustrated as their income tax refunds are taking weeks, or even months, to be credited. If you’re one of them, here’s a breakdown of the common reasons for the delay and what you can do.

Top Reasons for a Delayed Refund

Several technical and procedural issues can hold up your refund:

• Incorrect Bank Details: This is the most common issue. Your refund can’t be processed if your bank account isn’t pre-validated or if there’s a mismatch between your bank account name and PAN. An incorrect IFSC code or a closed bank account will also cause delays.
• PAN-Aadhaar Linkage: An inoperative PAN, due to not being linked with Aadhaar, will halt the refund process entirely.
• ITR E-Verification: Your refund won’t be processed until your ITR is e-verified within 30 days of filing. If you miss this deadline, your return will be considered invalid.

How Long Does a Refund Usually Take?

Typically, a refund is credited within 2 to 5 weeks of e-verification. Simple returns are processed faster, while returns with mismatches or higher refund amounts may take longer due to extra scrutiny.

How to Check Your ITR Refund Status

You can easily check the status of your refund online:

1. Go to the official Income Tax portal: www.incometax.gov.in.
2. Log in using your PAN and password.
3. Navigate to Services > Know your Refund Status or e-File > Income Tax Returns > View Filed Returns.
4. Your refund status will be displayed.

What About Larger Refunds?

Refunds over ₹50,000 are processed the same way, but they may undergo additional scrutiny, which can cause a delay. To avoid this, make sure all your details—PAN, Aadhaar, and bank information—are accurate.

Claiming a TDS Refund

To claim a refund for excess TDS, you must first file and e-verify your ITR. It’s crucial that your Form 26AS accurately reflects the correct TDS details. If there are any discrepancies, ask your deductor to correct the entries before you file your return.

There is no maximum refund amount—all excess tax you’ve paid is refundable. Plus, if your refund is delayed, the Income Tax Department will pay you interest at 0.5% per month.