Incorrect Bank and Personal Details
One of the most frequent reasons for refund delays is surprisingly simple: incorrect bank account details. The Income Tax Department credits refunds directly to the account mentioned in your return, so a wrong account number or an outdated IFSC code can
cause the transaction to fail. Another common issue is selecting a bank account that has not been pre-validated on the e-filing portal. Ensure the account you nominate for your refund is active, linked with your PAN, and properly validated. Similarly, double-check all your personal information. A mismatch in your name, PAN, or Aadhaar details between records can flag your return and halt processing. Before submitting, take a moment to confirm every digit and spelling is correct.
Forgetting to Verify Your Return
Filing your ITR is only the first step; verifying it is the mandatory second. An unverified return is considered invalid, as if it was never filed at all. The Income Tax Department has set a 30-day window from the date of filing to complete this verification. Missing this deadline can lead to the loss of your refund and may attract penalties for non-filing. You can verify your return electronically through several convenient methods, including using an Aadhaar OTP, net banking, or an Electronic Verification Code (EVC) generated via a pre-validated bank or demat account. If you cannot verify online, you can send a signed physical copy of the ITR-V acknowledgement to the Centralized Processing Centre (CPC) in Bengaluru, ensuring it reaches within 30 days.
Mismatch with Form 26AS, AIS, and TIS
The tax department has comprehensive records of your financial transactions. Your Form 26AS is an annual tax statement that lists all taxes deducted at source (TDS) and deposited against your PAN. The Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) provide even more extensive details on your income from various sources like savings accounts, fixed deposits, dividends, and property sales. A major red flag for the department is when the income and TDS details you declare in your ITR do not match the information in these official documents. Before filing, it is crucial to reconcile your data with Form 26AS and AIS to ensure consistency and avoid triggering scrutiny or additional tax demands.
Choosing the Wrong ITR Form
The Income Tax Department offers several ITR forms, each designed for specific categories of taxpayers based on their sources of income. Using the wrong form is a fundamental error that can render your return 'defective'. For example, a salaried individual with no other income sources might use ITR-1, but if they have capital gains from selling shares or property, they would need to file ITR-2. Filing with an incorrect form will delay processing, as the department will issue a notice under Section 139(9) asking you to rectify the defect, usually within 15 days. This not only postpones your refund but can also lead to your return being deemed invalid if not corrected in time.
Not Reporting All Your Income
Many taxpayers, especially salaried individuals, make the mistake of relying solely on their Form 16 and only reporting their salary income. However, you are required to disclose all sources of income, no matter how small. This includes interest earned from savings bank accounts and fixed deposits, dividend income, rental income, or earnings from freelance work. Forgetting to include these amounts can lead to a mismatch with your AIS and may result in a tax notice from the department. Even exempt income, such as interest from a Public Provident Fund, should be reported under the appropriate schedule for full transparency.
