Every taxpayer in India eagerly awaits their tax refund, which is issued by the government after filing tax returns. According to IRS norms, refunds are generally processed within 21 working days. If a refund is delayed, taxpayers are advised to check their income tax refund status online or by calling the IRS hotline. Delays can occur due to various reasons.
1. Incorrect information
While filing your returns if you have committed any mistake or if the IRS finds a numerical error, it can significantly slow down the refund process. When an error is detected, the return is earmarked for review, which means that the IRS employee will personally go through the file and identify the mistake. This can extend the refund process by a few days or weeks.
2. Victim of tax fraud
While you check income tax refund status online, check if you have become a victim of tax fraud; your tax refund might be delayed because of identity theft. If someone else uses your social security number or if the tax preparer alters the direct deposit information, you can become the victim of a fraud and getting refund will be delayed until the situation is resolved.
3. Form 8379
If you have filed a joint tax return with your spouse and if all or a part of the tax refund was applied the spousal support debts, your own refund can be delayed. In such a case, you need to fill Form 8379 for injured spouse allocation. This process usually takes about 60 to 90 days to process.
4. Spousal demise
A common income tax refund enquiry is related to the death of a spouse. If your spouse was due for returns, but if they passed away before filing the tax refund, you would need to submit IRS Form 1310 (Statement of a Person Claiming Refund Due to a Deceased Taxpayer) to avoid delay in your refund.
5. Communication address not update
This is another common reason why several people experience a delay in receiving their tax refund. If the communication address provided is wrong, you need to update the same on the income tax website before you claim the refund back.
6. False Bank Account Information
Today, most people prefer getting their tax refund deposited directly into their bank account than getting the paper cheques as it takes longer to process the refunds. However, to ensure that you get online income tax refund without delay, you must enter the bank information correctly. Even a simple mistake like spelling error in the name or entering incorrect bank account number can delay the refund by a few weeks or even months.
7. The IT department needs additional information
If the IT department while assessing your tax refund claim finds that your claim for the refund is questionable, then they might request you to provide supporting documents to support the claim. In such cases, the refund on tax returns will be delayed until you provide the necessary documents.
8. Defective returns filed
Your income tax refund process can be delayed if the IT department treats your income tax returns file as a defective return. In case of delay of the tax refund, you can check income tax refund status online on the income tax website.
9. Amendments made to the returns file
In some cases, you may want to make changes in the tax returns after it is filed. The amendment may be necessary because you realised that made a spelling error or you have missed out on claiming a deduction. In such cases, the processing time can be extended by 12 to 16 weeks before the refund is initiated.
10. Refund adjusted with outstanding demand of the previous year
If your online income tax refund status shows, refund claim rejected it could because the refund tax refund for the current year would have been adjusted with the outstanding demand of the previous years.
So, now that you know the various reasons why tax refunds could be delayed, check your status online and take appropriate measures to claim the refund.
more reason and action plan
Reasons why the refund is delayed and how to handle it?
There can be many reasons for your refund not reaching you. Here is a table of reasons and the action plans you need to follow in each of those cases.
| Reasons why the refund not received | Action Plans |
| Refund request rejected. As per the IT department, you owe them taxes. | The department will compute the tax liability and compare it to the calculations you provided in your tax return. If they find any differences and it turns out you still owe taxes, you might get a notice from the department stating the amount you need to pay. If this happens, take a look at all your documents and double-check the taxes you owe and the refund you’re supposed to get. – If the numbers you entered in your tax return are right, you can file a rectification return under Section 139(4) to explain your case. – If your tax return was incorrect, you should pay the outstanding demand that the department is asking for within the timeframe given in the notice. |
| Wrong Bank Account number | Reconfirm the bank details you have entered while filing your taxes |
| Bank Account not pre-validated | Refunds are credited only to a pre-validated bank account. make sure to pre-validate your bank account on the income tax e-filing portal. Check the steps here. |
| Incorrect name in Bank Account: | The name on your bank account needs to be exactly the same as the name on your tax return. If the names don’t match, your tax refund will not get credited to your bank account. |
| Bank account details provided to the IT department while filing returns have changed. | If the refund could not get credited to the bank account then to resolve the issue, raise the grievance in the income tax portal. In certain cases, the income tax department may ask you to raise a refund reissue request. Otherwise, it may ask you to attach the latest bank details along with other required information to e-mail at orm@cpc.incometax.gov.in. Attach the below-required information:- • Scanned copy of PAN • Contact Details (Name, DOB/DOI, Contact Number) • Scanned copy of any one Government identity such as Passport/Voter Card/Driving License/Aadhaar card • Screenshot of the error message • Helpdesk Ticket Number (grievance acknowledgement number. |
| Refund request under process. The delay could be the IT department is taking time to process your request. | Due to huge volume of returns, it may take some time to process your return. You can check the status of you refund here. 1. Make sure that you have e-verified your return within 30 days from the date of filing your return. 2. Also, check whether the IFSC code is valid. A bank might have undergone a merger and there has been a change in the IFSC code. In case you have failed to update the same, update it and pre-validate your bank details. |
| Return Under Scrutiny | The Income Tax Department selects some returns for scrutiny to ensure accuracy and compliance. If your return gets picked for scrutiny, it could slightly slow down the refund process until they finish the assessment. |
| Mismatch in Form 26AS | Form 26AS is a summary of all the taxes you’ve paid under your PAN number. If the TDS information in your tax return doesn’t match with what’s in Form 26AS, it might lead to a delay in getting your refund. |
| Filing returns through offline and not online. | Processing physical filing forms takes time. Wait for the IT department to reconcile the paperwork. |
Raise Service Request FAQ
1. What is refund reissue request?
If you have received an intimation from Income Tax Department or Refund Banker (SBI) that the processing of refund has failed, you can submit a Refund Reissue Request on the e-Filing portal. With refund reissue request service, taxpayer can raise request in e-Filing portal for re-issuance of refund.
2. How can I keep away from delay in submission of ITR-V?
You need to verify your Income Tax Returns within 120 days / 30 of filing. You can verify your returns by:
- You can e-Verify your return using e-Filing OTP / Aadhaar OTP / Bank Account EVC / Demat Account EVC / Net-banking / Digital Signature Certificate; or
- Sending a physical copy of duly signed ITR-V to CPC, Bengaluru
Important Note:
Please note vide Notification No. 5/2022 dated 29.07.2022, w.e.f. 01/08/2022 the time-limit for e-verification or submission of ITR-V shall be 30 days from the date of filing the return of income.
However, where the return is filed on or before 31.07.2022 the earlier time limit of 120 days would continue to apply.
3. How will I know if my service requests have been approved?
You can see the status of the service requests in your dashboard. Navigate to the particular record where you can view the status of the approval.
4. What can be the reasons for refund failure?
Failure of credit of refund can be due to one or more reasons as listed below:
- Incorrect Bank Details (Account no, MICR Code, IFSC Code, Name mismatch etc.)
- Account holder KYC is pending
- Account details given are other than Current Account or Saving Bank Account
- Account Description is incorrect
5. What is the effect of not verifying ITR within 120 / 30 days on my ITR uploaded on e-Filing portal?
If you do not verify in time, your return is treated as not filed and it will attract all the consequences of not filing ITR under the Income Tax Act, 1961. However, you may request condonation of delay in verification by giving appropriate reason. Only after submission of such request, you will be able to verify your return. However, the return will be treated valid only if the condonation request has been approved by the competent Income Tax Authority.
6. What is condonation of delay? If condonation is granted, what will be the follow up action on my part?
Condonation of delay is the process of requesting the Income Tax Department for allowing you to verify your ITR (after 120 days of filing your ITR) or submit your ITR (after the last date of filing) by citing the reasons of delay on your part.
The ITR will be treated valid and processed by Income Tax Department only once the condonation request has been approved by the competent Income Tax Authority.
7. Can anyone else submit request for condonation of delay / raise refund reissue request on my behalf?
Authorized signatory / Representative assessee / ERIs can submit requests for condonation of delay / raise a refund reissue request on behalf of the assessee.
8. Are there any restrictions for the files to be uploaded on the portal?
A maximum of 5 files can be uploaded. Additionally, the size for each file should not exceed a limit of 5MB.
9. Can ERIs raise a request for condonation of delay / raise refund reissue request?
Yes. ERIs can raise a request for condonation of delay / raise refund reissue request.
10. Can I raise a refund reissue request if my Bank Account is not pre-validated?
No. You can only proceed if your selected Bank Account is pre-validated.
If your selected Bank Account is not Validated, you can pre-validate the Bank Account online through the e-Filing portal. Go to My Bank Account User Manual to learn more.
Alternatively, you can validate it offline through the ECS mandate Form. Follow the steps below to validate your Bank Account offline:
- Download ECS mandate form.
- Take print out of the form and fill the necessary details.
- Get the form signed with bank seal from official Bank.
- Upload the scanned copy of signed form.
11. Is it certain that my condonation request will be accepted?
It is not certain that your request for condonation of delay will be approved. The ITR will be treated as invalid till the request is approved. Condonation of delay is at the discretion of the competent Income Tax Authority.
12. Is there a time limit to file condonation request?
As per the directions from CBDT vide Circular No. 9/2015 dt. 9-6-2015, no condonation request will be entertained beyond six years from the end of assessment year for which the request is raised. It should be noted that delays related to only genuine hardships are considered for approving any request for condonation of delay.
Understanding Income Tax Refunds
An income tax refund is the excess amount of taxes paid through TDS, TCS, or advance tax compared to the actual tax liability. This results in the taxpayer receiving a refund for overpayment.
Here’s a simplified explanation:
- If TDS, TCS, or advance tax > Final Tax Amount, it results in a Tax Refund.
- On the other hand, if Final Tax Amount > TDS, TCS, or advance tax, it leads to a Balance Tax Payable.
For example, if a taxpayer has paid Rs. 10,000 in taxes for the financial year 2023-2024, but their actual tax liability is only Rs. 8,000, they are eligible for a refund of Rs. 2,000 from the Income Tax Department. Once the income tax return is filed and verified, the income tax department will initiate the processing of the tax return. After processing, it generally takes around four to five weeks for the refund to be credited to the taxpayer’s bank account.
How to check your refund status on Income Tax Portal?
If you have not received the refund yet, check the refund status by logging in to income tax e-filing portal. Follow the below steps to view the refund status:-
Step 1: Visit the income tax e-filing portal and log in to your account using the log in credentials.
Step 2: Click on ‘e-File’>‘Income Tax Returns’>’View Filed Returns’.
Step 3: Go to the relevant assessment year for which you want to check the refund and check the ITR status. In the given screenshot below, you can check the refund status of the assessment year 2024-25. To view the details, you can click on ‘View details’.
Step 4: The status of your refund will be displayed in a new window along with the information.
If your ITR is processed but refund is not issued, it will show status ‘Processed with refund due’. It normally takes 20 to 45 days after the ITR processing to receive the refund amount.
You can also visit the tin-nsdl website (https://tin.tin.nsdl.com/oltas/refundstatuslogin.html) to check the income tax refund status. The refund status will be displayed after you enter the PAN, relevant assessment year and the captcha code in the above link.
What is the status if income tax refund is received?
The status will be ‘refund issued’ when the refund is received. And you can find all the refund details, such as mode of payment, refund amount, and the clearance date, as shown below.
