Many taxpayers who have filed their income tax return (ITR) and claimed a refund wait for the money to be credited to their bank account. While some refunds are processed quickly, others can take longer.
A delay in receiving an income tax refund does not necessarily mean that there is a problem with your ITR.
The income tax department says refund processing begins only after the return has been e-verified and that it usually takes around four to five weeks for the refund to be credited. Here are some common reasons why your income tax refund may be delayed.
Your ITR Has Not Been E-Verified
One of the first things taxpayers should check is whether their ITR has been successfully verified.
Simply filing the ITR is not enough. The return has to be e-verified or the signed ITR-V has to reach the Centralised Processing Centre within the prescribed time. The current time limit for e-verification or submission of ITR-V is 30 days from the date of filing.
If the return has not been verified, refund processing will not begin.
Your Bank Account Details May Have a Problem
Another common reason for a delayed income tax refund is an issue with the bank account linked to the return.
Taxpayers should make sure that the bank account mentioned for receiving the refund is correct and has been pre-validated on the income tax e-filing portal. The Income Tax Department specifically advises taxpayers to pre-validate their bank account so that any refund due can be credited.
An incorrect account number, IFSC code or other banking-related issue can result in the refund failing to reach the taxpayer.
There Could Be a Difference in Your Tax Details
The Income Tax Department checks the information reported in the ITR against information available with it.
For example, there could be differences between the income, TDS or tax details reported in your ITR and the information reflected in Form 26AS, the Annual Information Statement (AIS) or other records. Such differences may require further processing or clarification and can delay the refund.
TDS Details May Not Match
TDS is one of the most common reasons taxpayers claim an income tax refund. However, if the TDS claimed in the ITR does not match the tax credit available in the department’s records, the refund may not be processed as expected.
This can happen if an employer, bank or another deductor has reported incorrect TDS information or has not yet filed or corrected its TDS statement.
Taxpayers should therefore check their Form 26AS and AIS before filing the ITR and ensure that the TDS claimed in the return is properly reflected.
The Income Tax Department May Be Checking Your ITR
Some returns may take longer to process because the department’s automated systems identify information that needs to be checked.
This does not automatically mean that the taxpayer has done anything wrong. A return can simply take longer to process if certain details require additional verification.
Taxpayers should keep an eye on their registered email address and the e-filing portal for any communication or intimation from the Income Tax Department.
You May Have Received an Intimation
If there is a discrepancy in the return, the income tax department may issue an intimation after processing. The department advises taxpayers who have not received their refund within the usual four-to-five-week period to check whether they have received any intimation regarding discrepancies in the ITR and to check their registered email.
In some cases, the refund amount may also be different from the amount originally claimed in the ITR because of adjustments made during processing.
Your Refund May Have Failed
Even after a refund has been processed, the money may fail to reach your bank account because of a problem with the bank details.
In such cases, taxpayers may need to submit a refund reissue request through the income tax e-filing portal. The Income Tax Department’s service-request facility includes an option for requesting refund reissue when a refund issued earlier has failed.
How To Check Your Income Tax Refund Status
If your income tax refund is delayed, you can check its status online through the Income Tax Department’s e-filing portal. Follow these steps:
Step 1: Visit the Income Tax e-filing portal
Go to the official Income Tax Department e-filing website and click on ‘Login’.
Step 2: Log in to your account
Enter your PAN/Aadhaar/other user ID, password and the required security details to access your account.
Step 3: Go to ‘e-File’
After logging in, click on ‘e-File’ from the main menu.
Step 4: Select ‘Income Tax Returns’
Choose ‘Income Tax Returns’ and then click on ‘View Filed Returns’.
Step 5: Select the relevant ITR
You will see the returns filed by you. Select the relevant assessment year for which you are waiting for the refund.
Step 6: Check the refund and processing status
Open the return details to see whether your ITR has been processed and whether a refund has been issued. If the refund has been issued, the status will provide details about it.
What Should You Do If Your ITR Refund Is Delayed?
If your refund has not arrived after the usual processing period, first check whether your ITR has been successfully e-verified. Next, verify your bank account details and check whether the account is pre-validated.
You should then check Form 26AS and AIS for any mismatch in TDS or income details. Also check your registered email and the e-filing portal for any notice, intimation or request for action.
If the refund has failed, you can raise a refund reissue request through the income tax e-filing portal. If you find an issue with the processed return, the appropriate rectification or other service-request option may be available depending on the nature of the issue.
