ITR Refund: Many taxpayers now worry about delays in getting their income tax return (ITR) refunds. Many people are still waiting for their refunds even though they filed their forms accurately and on time. Taxpayers can negotiate the intricacies of the tax system and guarantee a smoother refund process by being aware of the reasons of these delays.
After verification, the Income Tax Department generally processes ITRs and provides refunds in 20 to 45 days. But according to the law, the department must process the return and provide refunds within nine months of the fiscal year in which the return was submitted. If the ITR is processed with a demand or contains complicated instances, there may be delays; in certain cases, the processing time may be extended to one year. Under Section 244A of the Income Tax Act, taxpayers are entitled to interest on the refund amount, even if processing may take some time.
1. Pending verification: Taxpayers must either electronically or by mailing a signed copy of their ITR-V to the Centralized Processing Centre (CPC) in Bengaluru after filing their taxes. Any possible refunds may be delayed if this verification is not finished within 30 days, as the return may be considered unfiled.
2. Differences between Form 26AS and ITR: Differences between the taxpayer’s ITR and Form 26AS, which offers a consolidated view of taxes deducted at source (TDS), are one of the main reasons why refunds are delayed. Refunds may be withheld by the Income Tax Department until the TDS claimed in the ITR and the amount shown in Form 26AS are reconciled, Taxpayers might face delays as their returns are examined more closely if they claim exemptions or deductions that fail to meet the criteria.
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3. Adjustment for prior liabilities: The Income Tax Department has the power to deduct any pending refunds from any unpaid tax liabilities owed by taxpayers from prior assessment years. Taxpayers may receive notices about these amendments, which could cause delays in the process. To prevent issues with future returns, taxpayers should pay down any outstanding balances as soon as possible.
4. Incorrect bank account details: Providing incorrect bank account information is another frequent reason for delayed refunds. The Income Tax Department processes refunds through direct bank transfers; thus, incorrect account numbers or IFSC codes can lead to failed transactions.
5. Error committed when filing: Refunds may be considerably delayed if an incomplete or inaccurate return is submitted. Miscalculations, income omissions, and failure to present required documentation are examples of common mistakes.
The Income Tax e-filing portal provides information on the current processing level that may require attention, so the taxpayer should first verify the status of the refund there. The taxpayer should review the filed tax return again for any mistakes or missing information that might be contributing to the delay. Refund processing can be accelerated by promptly resolving these issues.
The taxpayer may file a grievance using the “e-Nivaran” component of the e-filing site or get in touch with the income tax department directly if the delay is substantial and unjustified. Please be aware that delays are common and that, under certain circumstances, the taxpayer is entitled to interest at a rate of 0.5% per month or a portion of a month from the day the ITR is given until the date of the refund if the ITR is submitted by the due date.
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