You are currently viewing Reasons for ITR Refund Delays & How to Resolve It?

Reasons for ITR Refund Delays & How to Resolve It?

Loading

Last Updated on August 28, 2023 by Kanakkupillai

ITR Refund Delays

Filing an Income Tax Return (ITR) is an essential financial responsibility that taxpayers undertake annually. One of the primary benefits of filing an ITR is the possibility of receiving a refund if the taxes paid exceed the actual tax liability. While the ITR refund process has significantly improved over the years due to technological advancements and online filing procedures, there are instances where taxpayers might experience delays in receiving their refunds. Here, we will delve into the reasons behind potential ITR refund delays and provide comprehensive steps to resolve such issues.

Timely ITR Refunds: The Norm

Typically, the ITR refund process is designed to be efficient and prompt, with refunds being issued within a timeframe ranging from 7 to 120 days from the date of filing the return. This improved turnaround time results from technology integration and streamlined processes facilitated by the Centralised Processing Centre (CPC).

Reasons for ITR Refund Delays

  1. Bank Account Details Mismatch: A significant reason for ITR refund delays is discrepancies in bank account information. To ensure a seamless refund process, taxpayers must pre-validate their bank account details on the Income Tax website. Suppose there is a mismatch between the account number and the Indian Financial System Code (IFSC) provided during filing and the actual bank account details. In that case, the refund process may encounter delays.
  2. Inactive or Blocked Accounts: In some cases, refunds are not processed due to the account being inactive or facing holds or restrictions. Taxpayers must verify their bank account status and ensure it is active and operational.

Steps to Resolve ITR Refund Delay Issues

  1. Verification of Bank Account Details: Taxpayers must cross-verify the accuracy of the bank account number and IFSC code provided during the ITR filing process. Any inconsistencies should be immediately rectified.
  2. Contacting the Bank: If there are any doubts about the status of the bank account, taxpayers should directly contact their bank. Verifying the account’s active status and resolving any holds can prevent refund delays.
  3. Initiating Refund Re-issue Request: If an ITR refund has not reached the taxpayer due to account-related issues, they should initiate a refund re-issue request through the Income Tax filing portal. This process involves the following steps:
    • Log in to the official Income Tax website.
    • Access the ‘My Account’ tab.
    • Click on the ‘Service Request’ link.
    • Select ‘New Request’ under ‘Request Type’ and ‘Refund Re-issue’ under ‘Request Category’ from the dropdown menu.
    • Provide essential information such as PAN, assessment year, and refund amount.
    • Click ‘Submit’ under the ‘Response’ column. The pre-validated bank account and Electronic Verification Code (EVC) options will be displayed.
    • Choose the appropriate bank account and proceed.
    • Verify the bank account details and select the mode of e-verification.
    • Generate and enter the EVC to authenticate the request.
  4. Review and Processing by Income Tax Department: Upon submission of the refund re-issue request, the Income Tax Department will review the application and validate the details provided. Once verified, the department will expedite the process to issue the refund to the correct account.

Conclusion

Filing an Income Tax Return and receiving a refund can be seamless when accurate information is provided, and necessary precautions are taken. While technological advancements have considerably reduced ITR refund processing times, taxpayers must proactively verify their bank account details. In cases of potential delays, the steps outlined above can serve as an effective guide to resolving ITR refund issues promptly. Taxpayers can navigate the refund process with confidence and ease by ensuring accurate information and taking corrective measures when necessary.

Kanakkupillai

Kanakkupillai is your reliable partner for every step of your business journey in India. We offer reasonable and expert assistance to ensure legal compliance, covering business registration, tax compliance, accounting and bookkeeping, and intellectual property protection. Let us help you navigate the complex legal and regulatory requirements so you can focus on growing your business. Contact us today to learn more.