ITR Refund Delay: Over the past week, several taxpayers have taken to social media to complain that they are yet to receive their income tax refunds, even five months after filing their returns. Clarifying
the issue, the Income Tax Department has said it is scrutinising ITRs more rigorously this year and has issued notices to many taxpayers after identifying mismatches in their filings. Here is what taxpayers should know about income tax refund delays.
Why are income tax refunds getting delayed?
Income tax refunds are commonly delayed when returns are not fully processed or when the department detects mismatches or non-compliance in the filing.
One of the most frequent reasons is failure to verify the ITR after filing. Filing the return is only the first step. Taxpayers must verify their ITR using Aadhaar OTP, net banking, EVC, or by sending a signed ITR-V to CPC Bengaluru. An unverified return is treated as invalid and no refund is issued.
This year, the department has intensified scrutiny. If there is any mismatch between income declared in the ITR and details in Form 26AS, the Annual Information Statement (AIS) and the Taxpayer Information Summary (TIS), the return is flagged, leading to refund delays.
Refunds may also be held up due to outstanding tax demands, issuance of an intimation under Section 143(1) of the Income Tax Act, 1961, or incorrect bank account details provided in the return.
What should taxpayers do?
Taxpayers should not panic if their refund is delayed. The first step is to log in to the income tax e-filing portal and check for any notices under the “Pending Actions” tab.
Download the intimation and carefully compare it with your filed return, Form 26AS and AIS. If the department’s calculation is correct, accept it. If there is an error, raise a response with valid supporting documents.
How to track your income tax refund status
- Visit the Income Tax India website.
- Log in using your USER ID (PAN), password and captcha code.
- Go to “View Returns / Forms”.
- Click on “Select An Option” and choose “Income Tax Returns” from the drop-down menu.
- Enter the assessment year and submit.
- Click on the relevant ITR acknowledgement number to check your refund status.
