Income Tax return: File a rectification request to expedite stuck refund

Correct your mistake or provide additional information required by Department so that your return gets processed

If you had filed your Income-Tax Return (ITR) ahead of the December 31 extended deadline, you would have received your refund by now. If you have not, then you need to understand why it has got stuck and take certain steps.  

Additional documents required

One common reason for not receiving the refund is that the Income-Tax (I-T) Department requires additional documents to process it. Amay Jain, associate, Victoriam Legalis Advocates & Solicitors says, “In such a case, the Department will give the assessee an opportunity to submit the required documents.” Contact the assessing officer concerned, submit the required documents, and obtain an acknowledgement.

Data mismatch or incorrect details

Sometimes, refunds get stuck due to a mismatch between the returns you have filed and the data available with the Department. Angad Sandhu, partner, PSL Advocates & Solicitors says, “The refund is credited to the bank account linked to your profile, as available with the Department. It may happen that your bank details (account number, IFSC code, etc) are incorrect. It is also possible that your bank account details may have changed.”

In case of a mismatch, the I-T Department issues a notice to the taxpayer seeking reasons for the mismatch. It may also ask for additional documents to deal with the mismatch. Utsav Trivedi, partner, TAS Law says, “Obtain an acknowledgment receipt from the Department for the response submitted by you. This acknowledgment receipt must be mentioned in all future correspondence. It will also help in tracking the refund request.”

Incorrect refund request

If the refund you have requested is found to be incorrect, you will receive a notice from the Department explaining why it thinks it is incorrect. Again, you will need to file a reply along with supplementary documents.

Outstanding tax liability

Sometimes, the taxpayer submits a lower amount of tax than is due from him. Sandhu says, “Sometimes, taxpayers miscalculate their returns and pay the wrong amount. In such a case, they receive a notice from the tax department stating that they have an outstanding tax liability to pay.”

The assessee must recheck his documents and compute the tax amount to be paid or refund to be received. Jain says, “In case the information mentioned in the returns form is incorrect, the assessee should file an application for rectification or refund as the case may be.”

Sent but not received

Sometimes, the I-T Department processes the return and yet the assessee fails to receive it. This can happen due to a delay by the bank in releasing the money. In such a case, check with your bank.

Also ensure that you don't miss the last step of ITR V. Your ITR filing is not complete unless that is done. Jain says, “The assessee should ensure that all documents have been correctly filed and the ITR has been verified within 120 days of filing the return.”

Rectification versus revised return

There is a difference between a rectification request and a revised return.

If you find any discrepancy between the refund raised and the refund processed, you can raise a rectification request under Section 154 of the I-T Act, 1961. This can be filed online on the I-T Department’s website. A rectification request lets the taxpayer rectify his mistake by submitting additional documents or by providing the I-T Department with details that allow the old return to be processed.

Trivedi says, “Filing a revised return will initiate the process from the start. This may result in further delay in receiving the tax refund.”

How to check income-tax refund status

Method 1: On the NSDL website

Step 1: Go to the NSDL website to track refund (https://bit.ly/33Y6ZEm)

Step 2:  Fill in the details, including PAN and assessment year, and click on ‘Proceed’

Step 3: Your income-tax refund status will be displayed

Method 2: On e-filing portal

Step 1: Log into the e-filing portal of the Income-Tax Department

Step 2: Select View Returns/Forms

Step 3: Go to ‘My Account’ tab and select ‘Income Tax Returns’. Click on Submit

Step 4: Click on the acknowledgement number

Step 5: A page showing your return details along with income-tax refund status will appear