What to Do If Your Income Tax Return (ITR) is Verified but Not Processed
Filing your Income Tax Return is a crucial step, but it’s only half the battle. After filing, you must verify it, and then the Income Tax Department processes it. While some ITRs are processed in a few days, others can take months. If your ITR is verified but seems stuck in processing, here’s what you need to know and what you should do.
Understanding Processing Times
The time it takes to process an ITR can vary significantly. While the current average processing time is around 17 days, it can range from a few hours to six months. The complexity of your return is a major factor.
- Quick Processing: Simple ITRs, like ITR-1, are usually processed quickly because they involve straightforward income sources (e.g., salary, interest).
- Delayed Processing: Returns with capital gains (from mutual funds or stocks) or business income take longer. This is because the department needs to perform a more detailed check, matching your reported data with other financial information like Form 26AS and your Annual Information Statement (AIS).
Common Reasons for Delays
If your ITR processing is taking longer than expected, it’s often due to one of these reasons:
- Mismatched Data: The most common reason for a delay is a mismatch between the income or TDS you’ve reported and the data available in your Form 26AS and AIS.
- Incorrect Personal Details: Errors in your bank account details (like the account number or IFSC code) or a mismatch between your PAN and Aadhaar can also halt the process.
- Outstanding Dues: If you have any pending tax payments from previous years, the department may hold your refund to adjust it against the arrears.
- High Volume: If you filed your return close to the deadline, the sheer volume of ITRs the department receives can cause delays.
What to Do Next
If your ITR is verified but not yet processed, don’t panic. Here are the steps you should take:
1. Check Your ITR Status Online
The first step is to check the current status of your ITR on the e-filing portal. Log in, go to the View Filed Returns section, and select the relevant assessment year. The status will tell you exactly where your return stands.
2. Respond to Notices Immediately
If your ITR status shows “Defective,” it means the Income Tax Department has found a discrepancy and sent you a notice. You’ll need to rectify the error and resubmit your return. Failing to do so within the specified time can cause your return to be rejected.
A common example is a notice regarding undeclared interest income from a Fixed Deposit (FD). The notice will guide you on how to make the necessary changes.
3. Raise a Grievance
If your ITR remains unprocessed for an extended period without any notice, you can raise a grievance directly with the Income Tax Department. Log in to the e-filing portal, navigate to the Grievances section, and submit a detailed complaint. This can often help expedite the process.
4. Pre-validate Your Bank Account
To receive any potential tax refund, your bank account must be pre-validated on the e-filing portal. Ensure that your bank details are correct and that the account is linked to your PAN.
By following these steps, you can actively resolve any issues and ensure your ITR is processed correctly and in a timely manner.