Easy Office
LCI Learning

Income Tax Refund Delays: Causes and Solutions

Mitali , Last updated: 27 September 2023  

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.

Click here for Eligibility, Reissue & Process

Join CCI Pro

Published by

(Finance Professional)
Category Income Tax   Report

1 Likes   21130 Views


Related Articles