Why Your Refund May Be Delayed
While the Income Tax Department now processes returns much faster, several common issues can still hold up your refund. Often, the delay isn't a major problem but a simple procedural snag that requires your attention. Common reasons include the return not
being e-verified, mismatches between your ITR and data in Form 26AS or the Annual Information Statement (AIS), incorrect bank details, or a past outstanding tax demand that needs to be settled. Fortunately, most of these can be identified and resolved directly through the income tax e-filing portal.
Crucial First Step: E-Verification
Filing your ITR is only the first half of the process; e-verifying it is mandatory to complete the submission. The processing of your return and any subsequent refund will not begin until it is verified. You have 30 days from the date of filing to complete this step. The quickest ways to e-verify are through an Aadhaar OTP or by logging into the e-filing portal via your net banking account. If you miss this crucial step, the return is considered invalid, and you will have to file it again, causing significant delays.
Pre-Validate Your Bank Account
Since March 2019, the Income Tax Department only issues refunds to bank accounts that are pre-validated on the e-filing portal. This is one of the most frequent reasons for refund failure. To receive your refund without a hitch, you must ensure you have at least one active bank account pre-validated. The process is simple: log into the portal, navigate to 'My Profile', and select 'My Bank Accounts'. Here, you can add a new account by providing the account number, type, and IFSC code. The name on your PAN card must exactly match the name in your bank records for the validation to succeed.
Check for Outstanding Tax Demands
In some cases, a pending refund may be adjusted against an outstanding tax demand from a previous assessment year. The department is required to send you a formal intimation notice under Section 245 of the Income Tax Act before making such an adjustment. You can check for any such demands by logging into the e-filing portal and navigating to 'Pending Actions' and then 'Response to Outstanding Demand'. If you see a demand, you must respond. You can either agree with the demand and pay it, or disagree (fully or partially) and provide reasons and supporting documents for the dispute. Ignoring this notice will result in your refund being automatically adjusted.
How to Request a Refund Reissue
If your refund has failed due to incorrect or non-validated bank details, you don't need to panic. Once you have corrected the bank account information and successfully pre-validated it, you can submit a 'Refund Reissue' request. This service is available on the e-filing portal and instructs the department to attempt the credit again to your newly validated account. You can check the status of your refund on the portal to see the reason for failure before raising a reissue request.
When All Else Fails: Raise a Grievance
If you have completed all the necessary steps—e-verified your return, pre-validated your bank account, and checked for outstanding demands—but your refund is still delayed, you have the option to raise a formal grievance. This can be done through the e-filing portal's dedicated grievance section. When submitting your complaint, clearly describe the issue and provide the relevant assessment year and acknowledgement number. You can also call the Centralised Processing Centre (CPC) helpline for assistance.
