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Income Tax Refund Delays: Causes and Solutions

Mitali , Last updated: 27 September 2023  
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An income tax refund is a reimbursement of excess taxes paid to the government. When you pay more in income taxes throughout the year than you owe, you can claim a refund, which is the extra money returned to you by the tax authorities.

How to know the refund status?

To check your income tax refund status:

  • Visit the website: https://tin.tin.nsdl.com/oltas/refund-status-pan.html
  • Enter your PAN details (Permanent Account Number).
  • Choose the assessment year for which you want to check the refund status.
  • Enter the captcha code displayed on the screen.
  • Click on "Submit," and the status of your refund will be displayed.
Income Tax Refund Delays: Causes and Solutions

Causes and solution for tax refund delays

E-Verification Pending

  • This means that you have successfully submitted your income tax return, but you haven't completed the electronic verification process yet.
  • To complete the e-verification, you can use methods like Aadhar OTP, net banking, or sending a physical signed copy to the income tax department.

Refund Rejection

  • The Income Tax department has rejected your refund request because they have determined that you owe taxes based on their calculations.
  • They will compare the tax liability they calculated with the calculations you provided in your tax return.
  • If there are differences, you may receive a notice specifying the amount you need to pay.

Defective Return

  • Your return has been marked as "defective" under section 139(9) of the Income Tax Act.
  • This typically happens when your return is incomplete or improperly filled out.
  • You will need to rectify the defects and resubmit the return.
 

Unvalidated Bank Account

  • Your bank account is not pre-validated on the Income Tax Portal.
  • To receive refunds, it's essential to pre-validate your bank account on the income tax e-filing portal to ensure the money is credited to the correct account.

TDS/TCS Mismatch

  • There is a discrepancy between the TDS/TCS (Tax Deducted at Source/Tax Collected at Source) claimed in your return and the information in Form 16 or Form 26AS.
  • You need to reconcile these figures and correct any discrepancies before proceeding with your return.

No Refund or Demand

  • This status means that your Income Tax Return (ITR) has been duly processed, but neither a refund nor additional tax demand is applicable.
  • Your tax liability has been settled, and there is no further action required.

Refund Adjustment

  • Your refund, which was initially payable, has been adjusted against outstanding taxes from previous years.
  • The Income Tax department uses the refund to clear your existing tax liabilities.
 

Bank Account Name Error

  • The name on your bank account must match exactly with the name on your tax return.
  • If there is a mismatch, any tax refund will be returned to the Income Tax Department, and you will need to update your bank account information to receive the refund correctly.

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Published by

Mitali
(Finance Professional)
Category Income Tax   Report

1 Likes   21130 Views

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