ITR Refund Delay: Still didn't get your income tax refund? Here's what you should do

ITR Refund Delay: Over the past week, many taxpayers have complained on social media that they have still not received their income tax refunds even after five months of filing their ITRs. To clarify, the income tax department has been scrutinising ITRs with rigour this time, and has sent notices to many taxpayers after finding a mismatch in their filing. Here is what you need to know about income tax refund delay.

Why are income tax refunds getting delayed?

Income tax refunds usually get delayed because often times the returns are not fully processed, or the I-T Department finds mismatches or non-compliance in your tax filing.

One of the most common reasons why your ITR refund may be delayed is because taxpayers often forget to verify their ITRs after filing it. Filing the ITR is only the first step, taxpayers need to verify their ITR through Aadhaar OTP, net banking, EVC, or by sending a signed ITR-V to CPC Bengaluru. An unverified return is considered invalid and no refund is issued.

This year, however, the income tax department has intensified crackdown on taxpayers who may have mistakenly shown mismatches in their filing. If there is a mismatch in your income with your Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS), the income tax department flags it and as a result the refund is delayed.

Refunds can also be delayed due to outstanding tax demand or if the taxman issues a notice under Section 143 (1) under the Income Tax Act, 1961. Incorrect bank account details can also result in a delay in income tax refund.

What should taxpayers do?

The first thing that taxpayers must know that there is no need to panic if your income tax refund is delayed. You should first log in to the income tax e-filing portal and check if you have any notices under the “Pending Actions" tab.

Download the intimation and match it with your return carefully as well as with your Form 26AS, and AIS. If the income tax department is correct, accept it. If not, raise the issue with the department with valid supporting documents.

You must also track your income tax refund separately. Here is how to do it —

• Go to the income tax India website
• Log in using your USER ID (PAN number), the password, and the captcha code.
• Go to the ‘View Returns / Forms’
• Click on ‘Select An Option’ and then click on ‘Income tax Returns’ from the drop-down menu.
• Fill in the assessment year and then submit.
• Click on the relevant ITR acknowledgment number to check your ITR refund status.