Introduction
The income tax refund is an extra tax that you have paid in the form of TDS, TCS, or advance tax, then you get the tax refund for the additional amount. In simpler words, it’s getting a refund for overpaying. Once the verification of the income tax return is done, the income tax department starts the income tax return process, and after that, it generally takes around four to five weeks for the refund to be credited to the taxpayer’s bank account.
However, sometimes waiting for the income tax refund feels like waiting for water to boil when you are hungry – it seems like it takes forever – slow and frustrating. You have filed a tax return on time and completed all the necessary paperwork, and yet, your refund has not been credited to your bank account. It’s quite frustrating, right?
This blog will help you to understand the possible reasons for the delay of income tax refund and what you can do about it.
Possible Reasons For The Delay of Income Tax Refund
1. Errors in Your Tax Return
One of the reasons for the delay in tax refund is the common errors that you have might made while adding your bank account details, PAN number, or mismatched data in your Form 16 and the information you have submitted in your return. Even a small typing mistake can cause a delay in refund.
It is always recommended to double-check your data before submitting a tax return or you can also take the help of a professional to avoid any errors.
2. Verification Pending
The most important step after filing an income tax return is to verify it within a specific time. If the verification is not done in the specific period then it can cause a refund delay. The verification can be done through the e-verification process or by simply sending a signed copy of the ITR-V to the CPC (Centralized Processing Centre).
Make sure that you complete the verification just after filing the tax return. As soon as you complete your verification, the quicker it takes to credit the refund amount in your bank account.
3. Processing Time
Generally, after the e-verification, the income tax department takes around 20-45 days to process the return. Sometimes, these refunds get delayed due to the high rise in the tax returns.
4. Discrepancies in TDS or Advance Tax
If TDS or advance tax details don’t match with the information available with the Income Tax Department, then it can lead to a delay in tax refund. This discrepancy is generally caused due to the mistakes made by the employer or banks at the time of filing their TDS returns.
To avoid this problem, cross-check your Form 26AS (Tax credit statement) with the details mentioned in your tax return.
5. Incomplete Return
If your return is incomplete or missing essential information, the Income Tax Department may need to contact you for clarification, which can cause delays. This often happens if you forget to declare certain incomes or fail to provide necessary supporting documents. To avoid this mistake, always double-check your return carefully before submitting it.
6. Bank Account Issues
Sometimes there can be a delay in your refund due to bank account issues. Therefore, to receive an income tax refund, your bank account should be linked with your PAN card. Moreover, it should also be pre-validated on the Income Tax e-filing portal.
Therefore, always make sure that your bank account is properly linked to your PAN card and is pre-validated on the Income Tax portal. Also, if you make changes to your account details, then make sure to update immediately to avoid any delays.
8. Outstanding Tax Dues
If you have any outstanding tax dues from previous years, the Income Tax Department may adjust your current refund against those dues, leading to delays.
To avoid this problem, clear all your tax dues for the previous years, and if there is any error then take action immediately and resolve it.
Conclusion: How to Avoid Refund Delays
To summarize, to avoid delays always double-check your information while filing a tax return before submitting it. Moreover, complete the verification process in the specified time and submit all the required documents.
If you are still facing any problems or experiencing delays, don’t hesitate to consult a tax professional at ApkiReturn to resolve any issues.
We are a team of qualified Chartered Accountants, Company Secretaries, and Lawyers with more than 20 years of experience, and provide prompt and efficient services to meet clients’ needs.
Contact us at +91 766 515 6000 to book consultants with our experts.
