Income Tax Refund is Delayed ! What to Do Now?

It has always been emphasised by the government of India to file the ITRs within the stipulated time without any delay. This is essential because the sooner the ITRs will be filed , the sooner you can receive your refunds, if any. If you file your ITRs sooner, then there will be fewer refunds to be processed and hence, your refunds can be processed smoothly without any delay. This way you won't have to face the situation where your income tax refund is delayed. In this blog, we will discuss the various reasons for why the Income tax refund is delayed and the steps to take if your income tax refund is delayed.

What to do if you did not receive the refund?

The refund status can be checked by logging in the official portal of income tax for e-filing. To check your income tax refund status, follow the steps given below:

Step 1: Go to the official portal of income tax for e-filing and use your login credentials to login to your account.

Step 2: Click on ‘e-file’ option and select ‘View Filed Returns’ under the ‘Income Tax returns’ option.

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Step 3: Search for the particular assessment year that you  want to check the refund for and check its ITR status. Click on ‘View Details’ in order to check the details.

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Step 4: A new window will appear on your screen that shows the status of your refund along with your information.

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In case your ITR is processed but due to some issues your refund has not been issued, a message will be displayed ‘Processed with Refund Due.’ It usually takes 20 to 45 days to receive an income tax refund after the processing of ITR.

You can also go to the ‘tin-nsdl’ website in order to check your income tax refund status. You can view your income tax refund status after entering basic details like your PAN, the assessment year for which you want to check your income tax refund status and the captcha code.

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Reasons and actions if your income tax refund is delayed

There could be a multitude of reasons as to why your income tax refund is delayed. Some of the reasons and the actions to take if your income tax refund is delayed are listed below:

• Refund request is denied by the IT department:  In this case, you will receive a notice from the IT department which states the extra tax amount. You need to check all your documents and then calculate your tax liability and refund to be received again. If the values turn out to be the same, then you will have to file for a rectification return under Section 139(4). However, if the values don't match, then you will have to pay the extra tax amount to the IT department within the stipulated time period that is stated in the notice.
• If you forget to include a deduction: In this case you need to recheck your returns and add the deductions that you have missed out but are eligible for, if the department has not yet started the processing of your returns.
• If the bank account details have changed: If the refund was not credited to your bank account, then you need to raise a request for reissuing the income tax refund. Or in some cases the bank may ask you to attach the latest bank details with some required information like contact details(DOB/Doi, Name, Contact Number), scanned copy of an identity proof(Passport, Driving licence, Aadhaar Card, Voter Card etc.) and a grievance acknowledgement number(Helpdesk Ticket Number) and a screenshot of the error message that was sent to you. You will have to email this information to the bank.
• Refund Request is being Processed: In this case, you need to make sure that your return has been e-verified and the ITR-V has been sent within 120 days since the e-filing The time limit for e-verification on or after August 1st, 2022 has been reduced to 30 days since the date of e-filing. If not, then you need to recheck your returns and send the new acknowledgement to CPC. You should also check that the details of your bank account are pre-validated and check if the provided IFSC code is valid. It is possible that the bank went through a merger and that there was a change in its IFSC Code.
• The return was filed offline: The offline filing is a time taking process. Therefore, you need to have patience and wait for the It Department to complete the paperwork.

Once you have received the income tax refund that was delayed, the status will be displayed as ‘Refund Issued.’ Also, all the income tax refund details like mode of payment, clearance rate and refund amount will be visible to you as shown below:

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