Why Is Your Income Tax Refund Delayed? Know All Possible Reasons

• September 5, 2024
• CA Chandan Agarwal's Office

Income Tax Refund Delay Reasons: If your refund is still pending, there could be several reasons for the delay

Delay In Income Tax Refund 2024: Waiting for an income tax refund can be a stressful experience. After carefully filing your return, the anticipation of receiving your refund can become frustrating when delays occur. This guide explores the common reasons behind income tax refund delays, offering insights into what might be causing the hold-up.

If your income tax refund is still pending, there could be several reasons for the delay:

Introduction to Income Tax Refund Delays in 2024

Reasons Why Your Income Tax Refund is Delayed in 2024

• E-verification Pending: This is the most common reason. Your return cannot be processed until your ITR is e-verified.
• Delayed Physical Verification: If you opted for physical verification by sending the ITR-V to the Centralised Processing Centre (CPC) in Bengaluru, any delays in this process can hold up the refund.
• Processing Time: The Income Tax Department typically takes 20-45 days to process the return after e-verification. Delays can occur due to a high volume of returns.
• Discrepancies in ITR: If the Income Tax Department detects inconsistencies in your return, it may delay the refund. You might receive a notice to clarify the discrepancies.
• Bank Account Issues: Incorrect bank account details, closed accounts, or account holds can prevent the refund from being credited.
• Tax Arrears: If you have outstanding tax dues, your refund might be adjusted against them. Discrepancies between the tax paid and the tax declared could also delay the refund.
• System Errors: Technical issues within the Income Tax Department’s systems or your bank’s systems can sometimes cause delays.
• Portal Updates: Updates or changes in the IT portal may also delay processing.
• Refund Reissue Request: If the refund has been issued but not credited, you may need to request a reissue.

How to Check Your Income Tax Refund Status

Income Tax Refund Status: Steps How To Check

• Step 1: Go to the Income Tax India website at https://www.incometax.gov.in/iec/foportal/.
• Step 2: Log in to the portal using your registered USER ID (PAN number), the password, and the captcha code.
• Step 3: Look for ‘View Returns / Forms’.
• Step 4: Then click on the ‘Select An Option’ link and then on ‘Income tax Returns’ link from the drop-down list. Enter the assessment year and click on submit.
• Step 5: To check the details, click on the ITR acknowledgment number to view the ITR refund status.

The ‘refund paid’ status is also recorded in the ‘Tax Credit Statements’ in Form 26AS.

If there is some issue in your ITR bank details, it will show: ‘No Records Found, check your e-filing processing status by navigating through e-File – > Income Tax Returns – > View Filed Returns‘.

What to Do if Tax Refund is Delayed?

• Verify E-verification: Ensure your ITR is e-verified.
• Check for Discrepancies: Look for any communication from the Income Tax Department regarding discrepancies.
• Validate Bank Details: Verify your bank account details on the e-filing portal.
• Check Refund Status Online: Regularly check the status online.
• Contact Your Assessing Officer: If the refund is significantly delayed, consider contacting your local assessing officer.
• Raise a Grievance: You can also raise a grievance on the Income Tax Department’s e-filing portal.

Ensuring your ITR is accurate, verified, and updated with the correct bank details can help avoid delays in receiving your tax refund.

The Income Tax Department has warned sternly about a surge in ITR refund scams. Fraudsters use deceptive methods, including fake calls, pop-up notifications, and phishing emails, to trick taxpayers into revealing sensitive information.

The department urges taxpayers to remain vigilant and verify any suspicious communications through official channels.

An example was shared by the department, highlighting a case where an individual lost money to such a scam.

“A man lost Rs 1.5 lakh after clicking on a fake income tax refund message. He was directed to a fraudulent app, which led to his phone being hacked and money debited from his account,” a post on X said.

Source: https://www.news18.com/business/tax/top-10-reasons-why-income-tax-refund-is-delayed-2024-check-details-9038235.html