• Notification Date: 31-08-2023
• Notification No: N/A

Know Possible Reasons for Income Tax Refund Delay and Further Procedures

The deadline for filing the income tax return (ITR) for the financial year 2022-2023 was July 31, ensuring compliance without incurring penalties. However, for those who missed the deadline, the opportunity to file belated returns with a penalty and interest remains open. As of August 29, 2023, a total of 6.95 crore returns have been filed by taxpayers, out of which 6.76 crore ITRs have undergone verification. 

Around 5.61 crore of these verified ITRs have been processed, indicating that refunds for these returns are in progress. Receiving income-tax refund is a cause for celebration, but some taxpayers have to wait for receiving their refund. In such cases, it's important to understand the potential reasons for these delays and the steps to address the situation. 

Incorrect Bank Account Details 

Mistakes in providing accurate bank account information while filing income tax return (ITR) can lead to delays. So, it's always suggested to double-check and enter the bank details correctly. 

Additional Documentation Needed 

If the I-T department requires further documentation or information, the refund could be held up. 

Fabricated Information 

Providing incorrect or incomplete information intentionally might lead to delays or rejections. So, it's always suggested to provide accurate and complete information to avoid complications. 

Mismatch in TDS/TCS Claims 

If the Tax Deducted at Source (TDS) claimed in the ITR doesn't match the records in Form 26AS refunds can't be processed. This could be due to errors in the TDS return filed by the employer or the deductor (e.g., a bank). Taxpayers might need to approach them to rectify this. 

Processing Delay 

Delays can also occur due to processing timelines within the I-T department. Sometimes, it takes time for the department to review and approve the refund request. 

Check ITR Status 

Visit the income tax e-filing website incometaxindiaefiling.gov.in or the National Securities Depository Limited (NSDL) website tin.tin.nsdl.com to check the status of the tax refund. 

Verify ITR if not done 

An unverified ITR is incomplete and won't be processed. Taxpayers can verify through platforms like net banking, bank ATM, Aadhaar, bank account, or demat account. 

Respond to Communications 

Keep an eye on the email for any messages from the income tax department requesting a response. Timely communication is crucial, so if taxpayers receive any emails, they should respond promptly. 

Raise a Service Request 

If needed, taxpayers can initiate a service request on the e-filing portal to address any concerns or seek assistance from the I-T department.