Every year, as the tax season begins, it is your primary responsibility to file your income tax returns. The sooner you file the returns, the sooner you will get the refund (as applicable). If you delay filing your income tax returns, the income tax department will have many returns applications to process, and your refund may get delayed.
Generally, the Income Tax Department processes the tax refund as soon as possible. However, in some cases, based on their assessment of your request, they may hold back the refund. So, if you don’t get the refund as expected on time, you must first know the reason for the delay and take appropriate action accordingly.
Let us look at the common reasons why the IT department doesn’t pay the income tax refund and the steps you must take.
Reason
Your income tax refund request is rejected because, as per the IT department, you owe them taxes
Action
In the above situation, the IT department will send you a notice stating the outstanding tax amount you owe. Once you receive the notice, you should check all your documents and recompute your tax liability and the refund receivable. If you think the figures you have filed are correct, you must file a rectification return under Section 139(4) to underpin your claim. If the ITR you have filed is incorrect, pay the balance tax amount within the time limit as mentioned in the notice.
Reason
You missed including a deduction in the tax returns application form
Action
If the IT department has not started processing your returns yet, you can revise the returns and add the deduction you missed earlier that you are eligible for.
Reason
The bank account details you have provided in the IT returns form has changed
Action
If the IT department has not credited the IT refund to your bank account, you must raise a grievance with the IT department through their portal. After receiving your query, the IT department may ask you to reshare the bank details along with other documents –
•Copy of the PAC card
•Personal details – full name, date of birth, contact number
•Copy of identity card issued by the government of India like passport, Aadhar Card, driving license
•Grievance acknowledgement number
While sharing the details, ensure that you share the account details correctly so you can receive the tax refund in the desired account.
Reason
The refund request is under process
Action
First and foremost, ensure that you have e-verified your returns and sent the ITR-V within two months of filing the ITR. The e-verification time limit for ITR filed after 1st August is 30 days from the filing date.
Check if the bank details you have provided are pre-validated in the e-filing portal.
Check if the IFSC code of the bank branch where you hold the account is valid and correct. A bank may have undergone a merger, and the IFSC code may have changed. In such a case, ensure you update the same and pre-validate the details on the portal.
Also check: Unique Definition
Final Word
If you have not received the tax refund, check the reason for the delay and then take the necessary corrective action to ensure that you get the due refund.
