What Can I Do If the ITR Refund is Delayed?

Understand ITR
 

Let’s first take a look at the list of people who need to file an ITR: ¹
 

1. Salaried individuals

If your gross income exceeds the basic exemption limit before applying deductions under Sections 80C to 80U.

2. Directors and partners
 

This includes company directors in pvt ltd companies and partners in LLPs or partnerships.

3. Businesses and firms
 

All businesses, including private limited companies, LLPs, and partnerships, must file an ITR, regardless of profit or loss.

4. Charitable and religious trusts
 

If you receive income from charitable or religious trusts, including voluntary contributions.

5. Dividend earners
 

If you earn dividends from bonds, mutual funds, fixed deposits, interest , equities, or similar sources.

6. NRIs
 

NRIs must pay ITR based on income and tax obligations.

7. Claiming tax refunds
 

If you are eligible for a tax refund, you must file an ITR to claim the returns. Individuals and businesses are eligible for tax refunds¹.

Even if you’re below the taxable limit, filing ITR is mandatory if you meet any of these conditions:

1. Your total income exceeds the basic exemption limit (₹3,00,000) in one financial year (per the new regime).
2. You have deposited ₹1 crore or more in one or more current bank accounts (excluding post office current accounts) and ₹50 lakh or more in one/more savings bank accounts.
3. You have spent over ₹2 lakh on foreign travel or more than ₹1 lakh on electricity in the previous  year.
4. If you have had TDS or TCS over ₹25,000 (₹50,000 for senior citizens)
5. Business turnover of over ₹60 lakhs or professional income of over ₹10 lakhs.
    

Delay in ITR refund? Here’s what you can do
 

If your ITR refund is delayed, here’s what you can do:

1. Login to your account on the e-tax filing portal.
2. Find the e-filed returns or itr forms option from the drop-down menu and select.
3. Select the assessment year for which your ITR refund is delayed. Know that financial years and assessment years are different. For the financial year 2021-2022, you will have to select the assessment year 2022-2023.
4. Hit submit, and the portal will show the status of your refund and whether it has failed for any reason.
    

Reasons for delay in RTI refund
 

A delay in ITR refund is quite common, and there is no need to worry. However, if there is an unreasonable delay it can be due to reasons like:
 

1. You owe taxes
 

You may have made a calculation error and you still owe taxes or are eligible for a higher refund than calculated. You can cross-check your tax liabilities and make the changes, accordingly. Make sure to pay any outstanding tax dues.
 

2. Incomplete information provided
 

A delay in ITR refunds can occur because the Income Tax department requires additional information from you. You can contact the assessing officer via post or telephone.
 

3. Change in bank account details²
 

Change in bank account details can be a reason for the delay. If your bank account has changed, here’s what you can do:

• Login to your account on the e-tax filing portal and select the ‘service request’.
• Click on the link and find ‘request type’. Under this, you have to find ‘new request’ and select the request type as ‘refund issue’.
• You will see a list of reasons for the delay. From this, select the bank account
• Fill in the correct details and complete the process by performing e-verification by clicking on the button of “pre-validate”.
   

4. Delay in sending ITR-V
 

Know that you have to send ITR-V within 30 days of completing the e-filing process. If it is not verified within the timelines, it would be considered invalid, and all consequences of late filing would be applicable³.
 

Conclusion
 

Filing an ITR is mandatory for citizens of India who are on the taxpayer’s list. The Indian tax assessment and collection structure is created to streamline the process. So, if your ITR refund is getting delayed or you have any queries regarding the income tax filings, there is a redressal portal in place for you.
 

FAQs
 

1. Why is my income tax return delayed?
 

Delays in income tax refunds are quite common, given the assessment procedure and long list of taxpayers. However, if there is an unreasonable delay, you can log in to your account on the e-tax filing portal and get the status and reason for the delay.
 

2. What happens if my ITR refund goes to my old account?
 

A change in bank account details needs to be updated from your account by visiting the e-tax filing portal. You can raise a new request and select the request as a bank account to validate your bank account details.
 

3. Who can claim a TDS refund?
 

Any individual or businesses¹ can claim a TDS refund if the amount under TDS is more than what they were liable to pay. This can be done by visiting the e-tax filing portal.