After having your ITR Filing complete, receiving your refund is the phase that everyone looks forward to the most. However, our wait is frequently prolonged! There are multiple reasons for not receiving the refund. If you are one of those who have done their ITR Filing before the due date and have not received their refunds yet, fret not! In this bite, we are covering the top 8 reasons for not getting a refund from the Income Tax Department.
Before we jump onto the reasons, it is important to check a few things at your end! Firstly, you must first verify that the Income Tax Department has processed your ITR. You will receive your refund only after your ITR has been processed and confirmed by the tax authorities. Please note that you will only receive a refund if the tax department determines that you are eligible for refund after processing your income tax return.
Now, if your income tax return has been processed and your refund has been verified but is still pending, you should check the refund status. You may come across several statuses detailing why the refund has not been received. Let’s have a look at the major ones.
Check your Refund Status here
Top 8 Reasons for Not Receiving Income Tax Refund
Reason 1: Bank Account Not Validated
The income tax refund could be delayed if your bank account’s pre-validation was not done , or if your PAN is not linked with your bank account.
Reason 2: Account Number Provided is Incorrect or name mis-match
It may be possible that the bank account number given by you at the time of filing your income tax return is wrong or name mis-match. If this is the case with you, you will be required to make a Refund Reissue request with the correct account details.
Reason 3: Return is Pending with the Assessing Officer
In this case, your Refund is still being processed by the Income Tax Department. You don’t have to take any steps if this is the case as the refund will automatically get credited to your account in a few days after the return is processed.
Reason 4: You have Filed Incorrect ITR
Often it is observed that the refund is not generated because of the defective return under section 139 (9). If you have filed an incomplete or incorrect return, your refund will not be credited to your account. Check for further information by logging into your Income Tax account and taking the steps suggested by them.
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Reason 5 : You have Outstanding Demand
Your income tax refund can also be delayed if you have any outstanding demand pending from the previous financial year.
If there is any outstanding demand pending, then your income tax refund will be adjusted against that demand. The same will be informed to you via intimation notice issued under section 143(1).(copy pasted) Thus, once your ITR is processed please ensure that you received an intimation order. You should check and confirm that Income tax refund is pending or not.
Reason 6: Return Submitted but Not Verified
ITR e-verification is an important step in completing your tax return filing process. If you have missed verifying your ITR then you should verify it immediately to get your Income Tax Refund.
Reason 7: No Refund Due
One of the most common reasons for not receiving a refund is that there is no due refund. This means that after processing your return the tax department is of the view that there are no dues left. You should check the details about your refund in the intimation received u/s 143(1).
Reason 8: Refund Sent to the Banker
It may also be possible that your refund has already been processed by the ITD but it is yet pending with the bank. Once the bank processes, you will get your refund amount in the bank account provided at the time of ITR filing.
As Refunds are one thing that we all look forward to the most and are often disappointed when not received on time, it is important to know all about Refunds. Check out Guide to know everything about tax refunds https://tax2win.in/income-tax-refund-status
ITR-V is a one-page acknowledgment/receipt of the income tax return filed by you. It needs to be signed and sent to the Income Tax Department Office in Bengaluru. These days, an electronic verification option has also been given to make ITR verification convenient for taxpayers.