Incorrect Bank Details
One of the primary reasons for income tax refund delays is the presence of inaccurate bank account information. When the Income Tax Department initiates
the refund, it relies on the bank details you've provided. If the account number, IFSC code, or bank name are incorrect, the refund gets rejected. Moreover, if your bank account has been closed or frozen, it also leads to refund failures. It is advisable to check and confirm the accuracy of your bank details on the e-filing portal before filing your return. Make sure that the name on your PAN matches with the name on your bank account.
Outstanding Tax Dues
Another significant cause of refund delays is when there are outstanding tax liabilities. The Income Tax Department will first adjust your refund against any pending tax dues you might have. This includes unpaid advance tax, self-assessment tax, or tax arrears from previous years. The refund is utilized to clear these liabilities before any amount is credited to your account. You can verify any outstanding tax demands by checking your tax portal or contacting the IT department directly. Resolving these dues is crucial to expedite your refund.
Verification Issues
Failing to verify your income tax return (ITR) is a major reason for a refund delay. After filing your ITR, it must be verified. This can be done online through methods like Aadhaar OTP, net banking, or digitally signing the return, or you can send a physical copy to CPC, Bengaluru. The refund process only begins once the ITR is successfully verified. If the verification is pending, your refund will be put on hold. Make sure you complete the verification within the stipulated time frame to ensure prompt processing. You can check the status of your verification on the e-filing portal.
Mismatch in Information
Discrepancies between the information declared in your ITR and the data available with the Income Tax Department can also cause delays. This could include a mismatch between the income details, TDS (Tax Deducted at Source) claimed, or other deductions and investments declared. The IT Department verifies the details provided in your ITR with the data they already have. Any discrepancies found will trigger a review process, causing delays. It's crucial to accurately report all income, deductions, and investments to avoid such issues. Ensure the information you provide aligns with your Form 26AS.
Bank Account Not Linked
If your bank account isn’t linked to your PAN, it can also lead to refund delays. The Income Tax Department needs a linked bank account to credit your refund. You can link your bank account to your PAN through the e-filing portal. This process typically involves providing your bank details and verifying them. Ensure the details are accurate and that the account is active. Once linked, the refund can be processed smoothly. Regularly check the status of your bank account linking to ensure there are no issues.
Actions to Take
If you are experiencing a delay in receiving your tax refund, there are several steps you can take. First, you can check your refund status on the Income Tax Department's e-filing portal. This will provide you with the current status of your refund. If you find your refund status is 'failed', review the reasons and correct them. For instance, if there is a mismatch of information, you'll need to rectify it. Also, update your bank account details or contact your bank if there are any issues with your bank information. Consider contacting the IT department's helpdesk through phone or email if the issue remains unresolved after these checks. Keep all communication records for future reference.
