Why Is Your Income Tax Refund Delayed?

Your Guide to a Speedy Income Tax Refund

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Waiting for your Income Tax Refund can be frustrating. While the Income Tax Department typically processes refunds within 4-5 weeks, delays can and do happen. If your refund is taking longer than expected, it’s essential to understand the potential reasons and what you can do to resolve the issue.

Why Is Your Refund Delayed?

Several factors can cause a hold-up in your refund, and most are within your control.

• Incomplete ITR Filing: The most common reason for a delayed or cancelled refund is failing to e-verify your Income Tax Return. Without this crucial step, your ITR is considered invalid.
• Bank Account Errors: Incorrect or unvalidated bank details—such as a wrong account number, IFSC code, or a mismatch between your name on the bank account and your PAN—can lead to a refund failure.
• Discrepancies in Data: Any mismatch between the information you provided in your ITR and the data available with the Income Tax Department (e.g., from Form 26AS, AIS, or TIS) can trigger a manual review and delay.
• Incomplete or Incorrect Information: Providing false or insufficient information in your ITR, especially when claiming deductions or exemptions, can lead to your return being flagged for scrutiny.
• Outstanding Tax Dues: The IT Department may adjust your refund against any past tax demands or outstanding dues, so it’s wise to check your account for any pending liabilities.

How to Check Your Refund Status

If your refund has been delayed, here’s how to check its status online:

1. Visit the e-Filing Portal: Go to the official Income Tax India website at https://www.incometax.gov.in/iec/foportal/.
2. Log In: Use your registered PAN, password, and the captcha code to log into your account.
3. Navigate to View Returns: Select “View Returns / Forms” from the dashboard.
4. Check Your ITR: Click on “Income tax Returns” from the drop-down menu, enter the relevant assessment year, and submit.
5. View Status: Click on the ITR acknowledgment number to view your refund status.

You can also cross-verify your refund status in your Form 26AS, which records all your tax credits.

What to Do if Your Refund is Delayed

The IT Department advises taxpayers to proactively check for notifications if their refunds haven’t been processed within 4-5 weeks.

• Check Your Email: The department will typically send an intimation about any discrepancies or issues with your ITR via email.
• Rectify Discrepancies: If you receive an intimation, you may need to file a rectified return, update your bank details, or respond to the department’s query.
• Contact the Department: If you’ve followed all the steps and your refund is still delayed, you can file a grievance on the e-filing portal or raise a request for a callback.