Over the past week, a growing number of Indian taxpayers have taken to social media to voice their frustration. The common grievance? They have not received their income tax refunds even after a prolonged wait of five months since filing their Income Tax Returns (ITRs). This delay has prompted the Income Tax Department to clarify that it is conducting more rigorous scrutiny of returns this year, issuing notices where discrepancies are found.
Primary Reasons Behind the Income Tax Refund Hold-Up
The processing of an income tax refund can be stalled for several reasons. A fundamental yet often overlooked step is ITR verification. Simply filing the return online is not enough. Taxpayers must complete the verification process via Aadhaar OTP, net banking, EVC, or by sending a signed ITR-V to the Centralised Processing Centre (CPC) in Bengaluru. An unverified return is deemed invalid, and no refund is processed for it.
This financial year, the tax authorities have intensified their crackdown on mismatches in filings. A major cause for delay is a discrepancy between the income declared in the ITR and the data visible in Form 26AS, the Annual Information Statement (AIS), and the Taxpayer Information Summary (TIS). When such a mismatch is flagged, the refund is automatically put on hold pending clarification.
Other factors contributing to delays include outstanding tax demands from previous years, notices issued under Section 143(1) of the Income Tax Act, 1961, and even incorrect bank account details provided in the return.
What Should Taxpayers Do If Their Refund Is Delayed?
If you are facing a refund delay, the first step is not to panic. The recommended course of action is to proactively check your status on the official income tax e-filing portal.
Log in to the portal and navigate to the 'Pending Actions' tab to see if any notices have been issued to you. If a notice is present, download the intimation and carefully compare it with your filed return, Form 26AS, and AIS. If the department's observation is correct, you should accept it. If you believe there is an error, you must raise the issue with the tax department by submitting valid supporting documents.
It is also crucial to track your refund status separately. Here is a simple guide to do that:
- Visit the income tax India e-filing website.
- Log in using your PAN (User ID), password, and the captcha code.
- Go to 'View Returns / Forms'.
- Click on 'Select An Option' and choose 'Income Tax Returns' from the drop-down.
- Enter the relevant assessment year and submit.
- Click on the specific ITR acknowledgment number to check your refund status.
Key Takeaways for a Smooth Refund Process
To avoid unnecessary delays, remember these critical points. First, always verify your ITR after filing. Second, ensure the income and tax details in your return perfectly match the information in your Form 26AS and AIS. Finally, regularly check the e-filing portal for updates or pending actions to address any department queries promptly.
