What is a refund of income tax returns?
You receive the additional amount paid as a tax refund if you paid more taxes than you were obliged to pay in advance tax, TDS, or TCS. It's similar to getting your money back for overspending.
Advance tax, TDS, or TCS > Total Tax Amount = Tax Refund
Balance Tax Due > Final Tax Amount > TDS, TCS, or advance tax [1]
For example, a taxpayer is entitled to a Rs. 2,000 refund from the Income Tax Department if they paid Rs. 10,000 in taxes for the fiscal year 2023–2024, but their real tax burden was only Rs. 8,000.
The income tax department will begin processing the tax return as soon as it is filed and verified. It will take around four to five weeks for the refund to be credited to the taxpayer's bank account following the processing of their tax return. [1]
What are the causes of the refund delay and how should it be handled?
Refund request denied:
You owe them taxes, according to the IT department. The tax liability will be calculated by the department and compared to the figures you submitted in your tax return. You may receive a notification from the department outlining the amount you must pay if they discover any discrepancies and it turns out you still owe taxes. [1]
In the event that this occurs, review all of your records and confirm the taxes you owe and the anticipated refund. [1]
You can file a rectification return under Section 139(4) to provide an explanation of your situation if the numbers you entered on your tax return are correct. [1]
In the event that your tax return was inaccurate, you must pay the department's outstanding claim within the window of time specified in the notification. [1]
Incorrect bank account number:
Verify the bank information you provided when submitting your taxes. [1]
Not having a pre-validated bank account:
Only bank accounts that have been pre-validated are credited with refunds. On the income tax e-filing portal, be sure to pre-validate your bank account. [1]
Inaccurate bank account name:
The name on your tax return and the name on your bank account must match exactly. Your tax refund will not be credited to your bank account if the names do not match. [1]
The bank account information you gave the IT department when you filed your returns has changed:
If the refund was not credited to your bank account, you can file a grievance through the income tax portal. In some circumstances, the income tax department may ask you to submit a refund reissue request. [1]
A refund request is being processed:
The IT department may be taking longer to handle your request, which would explain the delay. Processing your return could take a while because of the large volume of returns. [1]
1. Within 30 days after the date of filing your income tax return, confirm that you have e-verified it. [1]
2. Verify the validity of the IFSC code as well. It is possible that the IFSC code has changed as a result of a bank merger. Update it and pre-validate your bank information if you haven't already. [1]
Return Under Scrutiny
To verify accuracy and compliance, the Income Tax Department chooses a few returns to examine. The refund process may be a little slower until they complete the evaluation if your return is selected for review. [1]
Form 26AS discrepancy
A summary of all the taxes you have paid under your PAN number is provided on Form 26AS. There may be a delay in receiving your refund if the TDS information on Form 26AS differs from that on your tax return. [1]
Returns are filed offline rather than online.
It takes time to process paper filing forms. Await the papers to be reconciled by the IT department. [1]
What should you do if your refund hasn't arrived yet?
To have your refund reissued, please contact the IT department. Make sure to include your PAN, the assessment year for which the refund was granted, and the precise amount of the return when contacting the IT department. You can get in touch with the IT department via their e-filing portal, phone, or mail. [1]
Conclusion
If your income tax refund is delayed, don’t panic. Various reasons, such as incorrect bank details, pending tax dues, or processing backlogs, could be causing the delay. To avoid issues, always double-check your tax filings, pre-validate your bank account, and ensure all details match accurately.
FAQs
Why is there a delay in the income tax refund?
If you filed your income tax return, and have not yet received your refund, make sure you have completed the e-verification process. If it's not, confirm the return. Even after the income tax return is filed and e-verified, the refund is not credited to your account. Use the e-filing system to file a grievance, comprehend the reason behind it, and respond suitably. [1]
I have not received my income tax refund. What should I do to escalate this?
If you haven't gotten your refund within a reasonable time frame after filing your income tax return, make sure you have verified it both online and offline. Unless they are e-verified and incomplete, ITRs are not processed. [1]
When can we expect to receive our income tax refund?
After the CPC Department of Income Tax processes the ITR, refunds are given out 20–45 days later. [1]
How can I find out the status of my income tax refund?
Go to "Income Tax Returns," "e-File," and finally "View Filed Returns." Go to the relevant assessment year and check the ITR status to see the refund status. . [1]
What might be the cause of a failed refund?
One or more of the following factors may be the cause of a refund credit failure:
- Inaccurate bank information (name mismatch, account number, MICR code, IFSC code, etc.)
- Other than a current account or savings bank account, account details are provided.
- Accounts at PAN-Bank are not connected.
- Inconsistency between the bank account and PAN names [1]
What is the condonation of delay?
The procedure of asking the Income Tax Department to grant you permission to submit your ITR (beyond the deadline for filing) or verify your ITR (after 120 days of filing) while providing justification for your delay is known as a "condonation of delay."
Only when the condonation request has been accepted by the appropriate Income Tax Authority will the Income Tax Department consider the ITR to be legitimate and begin processing it. [1]
Can someone else make a refund reissue request or request a delay forgiveness on my behalf?
On behalf of the assessed, an authorized signatory, representative , or an ERI may request a refund reissue or a delay forgiveness. [1]
What is the return under scrutiny?
To verify correctness and compliance, the IT Department chooses a few returns to examine. The refund process may be a little slower until they complete the evaluation if your return is selected for review. [1]
What steps can you take to ensure your refund is processed smoothly?
E-verify your tax return within 30 days, pre-validate your bank account, ensure the IFSC code is correct, match your bank account name with your tax return, and confirm all details before filing. [1]
What happens if your bank account details are incorrect on your tax return?
Your refund will not be credited. You may need to file a grievance or submit a refund reissue request through the income tax portal. [1]
References:
[1] https://cleartax.in/s/what-to-do-income-tax-refund-is-delayed
An ISO 9001:2015 
