Income tax refund delayed? These mistakes could be the reason

Income tax refund delayed? These mistakes could be the reason&nbsp

New Delhi: The Central Board of Direct Taxes (CBDT) informed on Wednesday that it has issued refunds worth Rs 1,73,139 crore to more than 15.7 million taxpayers from 1 April 2020 to 11 January 2021. Income tax refunds of Rs 57,139 crore have been issued in 15,455,577 cases and corporate tax refunds of Rs 1,15,999 crore have been issued in 210,150 cases.

However, many taxpayers have been complaining on social media that they filed income tax returns (ITRs) around 4-5 months ago but are yet to get refunds. While some taxpayers are getting refunds within a week’s time, there are many who have not received theirs even after months. 

This time ITRs are processed faster and refunds are being issued within a week’s time to some people. Something which was not visible in the past. It is happening mostly in case of ITR 1 and ITR mainly due to the new technologically upgraded platform (CPC 2.0). Additionally, the income tax department has also introduced a new initiative called, “Jhatpat Processing” to smoothen the ITR filing experience for taxpayers. Under the “Jhatpat Processing”, the processing of ITR 1 and ITR4 has started.

However, if you haven’t still received your refund, here are the reasons:

1. Wrong bank account details: As per the new procedure laid out by the tax department, income tax refunds are being issued only electronically which means that refunds are credited directly to the bank accounts of the taxpayer. In case the bank account number filled in the tax form is incorrect, the refunds will be delayed till the information is corrected. In case you have made this mistake, you can correct the bank account details online on the income tax department’s portal. It is important that the bank account that you are providing is linked to the permanent account number (PAN).

2. Not prevalidating the bank account: In order to receive Income tax refund, the bank account has to be prevalidated. You can go to the income tax department’s website, log in using your PAN and password, and then go to profile settings. You can easily locate an option to prevalidate your bank account. If your bank is integrated with the e-filing portal, pre-validation will be done directly through electronic verification code (EVC) and net-banking route. You need to give your bank account number, IFSC code, mobile number and email ID linked to that account.

3. Not verified ITR: Some filers forget that the process of filing income tax returns is only completed when you verify your income tax return. In case you have forgotten to do this, the process will not be complete and your refunds will be delayed. Make sure your ITR is verified so that it can be processed quickly and you refund is credited as soon as possible.