Income Tax return refund delayed: Know likely reasons and solutions

If your refund is delayed, the first thing you should do is check status on the Income Tax e-filing portal

You may submit your Income Tax return (ITR) on time but getting a refund may take time. The Income Tax has to do multiple checks before it approves a refund . Let us have a look at reasons for delayed returns.

 

Processing: One reason is the backlog in processing returns. It usually takes 20-45 days for a return to be processed post-verification, but high volumes can slow this down.

 

Verification: If a taxpayer has not completed the verification process for ITR — either by using an Electronic Verification Code (EVC) or by submitting a signed ITR-V — this can delay refund.

 

 

Errors in tax returns: Mistakes in returns can lead to delays. Common errors include incorrect misreported income and missing documentation. If discrepancies are found, the return may require additional scrutiny, extending the processing time. 

 

Mismatch with Form 26AS: A mismatch between the tax deducted at source (TDS) reported in the taxpayer's return and the information in Form 26AS can delay refunds.

 

Return under scrutiny: To ensure everything is accurate, the Income Tax Department sometimes selects returns for scrutiny. This may delay in receiving tax refund till the department finishes additional assessment.

 

Bank account issues: Incorrect or outdated bank account details can prevent the refund from being credited.

 

Tax arrears: If you owe taxes, the department may adjust your refund to cover these dues.

 

System errors: Technical issues in the department’s systems or your bank can cause delays.

 

“The Income Tax Department generally aims to process returns and issue refunds within 20 to 45 days after an ITR is verified. In some cases, particularly where the return is considered critical or complex, the processing time can extend up to one year based on personal experience. If the refund is delayed beyond these periods, the taxpayer is entitled to receive interest on the refund amount as per Section 244A of the Income Tax Act,” said Amit Bansal, a chartered accountant and partner - direct tax at Singhania & Co.

 

What to do if your refund is delayed

 

Check your refund status: First check the status of your refund on the Income Tax e-filing portal. This will provide insights into the current processing stage and any issues that may need your attention.

 

Contact the tax authority: If the delay is significant and unexplained, consider raising a grievance through the e-Nivaran section on the e-filing portal or contacting the Central Processing Center (CPC) helpline for updates.

 

Review your tax return: Double-check your tax return for any errors or missing information. Correcting these issues promptly can help expedite the processing of your refund. Revise your return addressing the defects pointed out by the Income Tax Department within 15 days.

 

File early next year: To avoid future delays, consider filing your tax return as early as possible. This can help you bypass backlogs that often occur closer to the filing deadline.