10 reasons why your Income Tax refund is delayed

Income Tax refund

Income Tax refund: Despite the fact that the deadline for filing income tax returns (ITR) for the assessment year 2021-22 has been extended until December 2021, many people have already completed the process. Some of these people may be waiting for their tax refund since they paid more tax than they owed.

The refund request is made at the time of ITR filing. The taxpayers who are entitled for a refund receive an intimation and the amount is credited to their accounts once the income tax department processes and validates your ITR. However, there is occasionally a delay in crediting the account due to the following reasons-: 

1. Additional Information Required

Income Tax department needs additional documentation to process your refund request. Contact the assessing officer as soon as possible via phone or mail, and send the needed documentation. Obtain a written acknowledgement from the officer for the same.

Read Also: Income Tax for NRI- Which Income in India is taxable and its tax rates

2. Income Tax Refund request rejected

The department may send you a notice indicating the amount of unpaid taxes. In this situation, double-check all of your documents and compute your tax liability and refund due. File a rectification to support your claim if the amounts you entered in the returns form are valid.

Pay the outstanding tax demanded by the department within the time limit specified in the notice if the returns filed are found to be incorrect.

3. Income Tax Refund Found Incorrect

Income Tax Refund could also be delayed when refund request found to be incorrect by the IT department. If the department determines that your refund request is incorrect, you will receive a notice explaining why. You can file a rectification to support your claim even if you receive the notice.

Read Also: Income Tax on equity shares and mutual funds

4. Wrong Bank Account Details

Your Income Tax Refund may also be delayed, if bank account details submitted to the IT department while filing returns have changed. If your bank account details have changed, communicate your assessing officer the new account number, IFSC and MICR code. The assessing officer will notify the bank about this information and request that the money transfer process be updated.

5. Prevalidating the bank account

The bank account must be prevalidated in order to get an income tax refund. You can access profile settings by going to the income tax department’s website and logging in with your PAN and password. You can easily find a option to prevalidate your bank account. Pre-validation will be done directly using electronic verification code (EVC) or net-banking route if your bank is integrated with the e-filing portal. Your bank account number, IFSC code, mobile number, and email address associated with that account must be provided.

Read Also: Income Tax on Provident Fund: New Rule to tax PF contributions & interest

6. Mistakes in ITR

If you select the incorrect ITR form, misspell important personal information, or enter wrong information, your refund will be delayed. Income tax refunds are now solely granted electronically, according to the tax department’s new method, which implies that refunds are credited directly to the taxpayer’s bank accounts. If the bank account number entered on the tax form is wrong, reimbursements will be delayed until the error is addressed. If you make this mistake, you can update other information or your bank account information on the income tax department’s website.

7. Bank Account not linked with PAN Card

It is critical that you provide a bank account that is linked to a permanent account number (PAN) If there are discrepancies between the data you provided last year and what you did this year, an IT official will thoroughly examine your records to see if you need to submit additional information. You may receive a request from the IT department to provide additional information.

Read Also: Income Tax Return: Mismatch in Form-16 and Form 26AS ?

8. Income in 26AS

There may be any income showing in Form 26AS but not disclosed in Income Tax Return. In that case, you should check your form 26AS and revise your ITR by showing the undisclosed income.

9. Complexity of ITR

Generally, it takes 15 to 90 days to receive a refund. The time it takes to process a refund is determined by the complexity of the ITR, such as the Foreign Tax Credit (FTC), and the kind of ITR, such as ITR 1, 2, 3, 4, and so on. ITR 2 and ITR 3 will take longer than ITR 1 and 4. A taxpayer claiming FTC may have to go through manual processing with a tax officer, which can take anywhere from six months to a year.

Read Also: Income Tax Refund of AY 21-22 ITR started, IT Dept seek online response

10. Forgot to include a deduction

If the Income Tax department has not started to process your returns, you can go ahead to revise your returns and add the missed out deduction you are eligible for. Although you can revise your ITR any number of times before the end of timeline given in the Act.

Disclaimer:The article or blog or post (by whatever name) in this website is based on the writer’s personal views and interpretation of Act. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon. 
Also, www.babatax.com and its members do not accept any liability, obligation or responsibility for author’s article and understanding of user.

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