The Income Tax Department has announced that it has issued Income Tax Return (ITR) refunds totalling over Rs 2,13,823 crore to over 2.24 crore taxpayers between April 1st, 2020 and March 22nd, 2021. Some taxpayers were taken aback by the Income Tax Department's claim because they are still waiting for their ITR refund. If you haven't received your refund because of a discrepancy in your ITR, the first thing you should do is check your email for any notification from the IT department regarding the refund. You can also check this by logging into your account on the income tax department's e-filing portal. The income tax refund, if eligible, is one of the things that every taxpayer who files income tax returns on a regular basis looks forward to. However, tax refunds are not always received on time and maybe delayed for a variety of reasons. You should probably check the status of your refund online and figure out why it took so long.
What is Income Tax Refund?
When you pay more in taxes than you owe, you will receive a refund including interest. Advance tax, self-assessment tax, tax deducted at source, foreign tax credit, and so on are all possibilities.
In many cases, you may have noticed that the refund amount you received is relatively better than the refund amount claimed on your tax return. Interest on a tax refund is represented by this difference. If the refund is 10% or more of the tax paid, the income tax department is required to pay this.
It's possible that the department won't pay you all of your refunds. If you owe taxes from a previous year and are due to a refund in a subsequent year, the income tax department may adjust your refund accordingly.
Here are some of the most common reasons for your return being delayed.
This is one of the most common causes of refund delays. Following a change in jobs or salary accounts, many taxpayers forget to update their account numbers with the IRS. There may be a delay in processing your income tax refund if the income tax department is not updated with the most recent bank account information.
There may be a delay if you fail to include any deductions, such as those provided under sections 80c and 80D of the Income Tax Act, or any other sections under which you wish to claim a deduction, and you may not be eligible for the same.
Not verifying online
It will take time to receive funds if you send a manual copy of your ITR-V to CPC Bangalore. Electronic Verification Code (EVC) can be used to quickly verify tax returns. There are different ways through which you can verify your tax return.
Finally, unusual circumstances such as attempting to commit tax fraud, evading taxes, or committing any other criminally punishable offence may result in a delayed refund and additional prosecution.
How to Check the Status of Income Tax Refund?
Step 1: Visit the income tax e-filing portal
Step 2: Log in with user ID, password, and date of birth/date of incorporation
Step 3: Click on the 'My Account' tab
Step 4: Select the 'Refund/Demand Status' option
The status of your returns will be displayed, along with details such as the assessment year, payment method, and, if applicable, the reason for refund failure.
How to check the refund status on NSDL?
Step 1: Click on the refund status link on NSDL's website
Step 2: Enter your PAN
Step 3: Select the relevant assessment year
Step 4: Enter Captcha Code.
How to file a complaint on Income Tax Refund online directly?
Step 1: Log in at direct link - https://www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/ORM.html
Step 2: Enter your name, PAN details, Assessment Year, etc.
Step 3: Write your query in the description box
Step 4: You can select the social media type and enter the ID
Step 5: Enter CAPTCHA
Step 6: Click on the 'Submit' button
Your ITR refund grievance will get registered online.
Things to Consider
- To process your refund request, the IT department may require additional documentation.
- The department may send you a notice stating the amount of unpaid taxes. In this case, double-check all of your paperwork and recalculate your tax liability and refund due. If the figures you entered on the returns form are accurate, submit a rectification to back up your claim.
- If the department believes your refund request is incorrect, you will receive a notice from them explaining why they believe it is incorrect.
- If your returns have not yet been processed by the IT department, you can go ahead and revise them to include the missing deductions.
- If your bank account information has changed, inform your assessing officer of the new account number and MICR code.