Introduction
ITR Refund is a process through which taxpayers receive a refund of excess income tax paid to the government. However, for some taxpayers, the ITR refund process can be delayed due to various reasons. In this article, we will discuss why income tax refunds get delayed for certain individuals and what steps can be taken to resolve the issue.
Process of filing ITR
One of the reasons why taxpayers may experience a delay in receiving their ITR refund is an ongoing ITR filing process. The Income Tax Department takes some time to process the ITR, and if it has been a long time since the filing and the refund has not been received, taxpayers should check their refund status on the official website.
ITR Refund Eligibility
Another factor to consider is whether the taxpayer is eligible for a refund or not. Income Tax Refunds are only issued if the Income Tax Department processes the refund and deems the taxpayer eligible for it. Typically, the refund is submitted within four weeks after the Income Tax Department confirms the taxpayer’s eligibility.
Wrong bank account
If incorrect bank details were provided while filing the return, the ITR refund will not be credited to the taxpayer’s account. It is crucial to ensure that the name registered in the bank account matches the PAN card details. The refund will be credited to the bank account mentioned in the ITR.
E-verification of ITR
E-verification of ITR is mandatory in the process of filing ITR and receiving a refund. The ITR refund will only be issued if the ITR payment is e-verified. Taxpayers must complete the e-verification process within 30 days of filing their ITR.
Arrears of last financial year
If the taxpayer has any arrears from the last financial year, it may cause a delay in filing the ITR return. In such cases, the refund will be used to cover the outstanding balance. Taxpayers will be duly informed of this through an information notice.
Scrutiny of ITR returns
Some ITR filings undergo scrutiny by the Income Tax Department to ensure accuracy and compliance. If a taxpayer’s refund is under scrutiny, it may take additional time to get credited to the ITR refund account.
Incorrect information in Form 26AS
Form 26AS is a consolidated statement of all taxes paid on the taxpayer’s PAN. If there is any discrepancy between the TDS details in the return and the TDS details in Form 26AS, it may cause a delay in the refund process.
Technical difficulty
In addition to the aforementioned reasons, any technical glitch in the Income Tax Portal can also lead to a delay in the refund. In such cases, taxpayers can contact the ITD helpline for more information and assistance.
It is important for taxpayers to understand the possible reasons behind a delayed ITR refund and take appropriate steps to resolve the issue. Consulting a financial advisor can provide guidance on navigating the refund process and minimizing any potential financial losses.
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