Waiting For Your Income Tax Refund: Here’s By When It Gets Credited
The department of tax in India is liable to pay the tax refund in case the assessee for the given year has paid a tax higher than his or her actual liability. Also, there can be reasons such as higher deduction of TDS or self-advance or self-assessment tax liability which can result in tax refund for a taxpayer.
And so as the due date for filing ITR for FY 2019-20, Assessment year 2020-21, is fast approaching and is December 31, 2020 for accounts that are not to be audited, you may be wanting to know when your claimed refund shall be processed and credited into your bank account, after you have filed the ITR for the respective year.
As per the tax consulting firm, it has been observed that in certain cases refund are even credited within few days of filing the ITR, while in other cases where some discrepancies are known and the return is taken for assessment, the processing of the refund shall take longer.
Also, this year, due to the Covid 19 pandemic, the results could be delayed by some time. So, certainly there is no timeline for the credit of income tax refund and this may vary on a case to case basis.
Further it has been observed that IT refund for the ITR filed for FY 2019-20 are being processed first than for last year’s ITR.
Other reasons that result in the delay of ITR refund:
Mention of wrong bank account number or other bank account details such as IFSC code etc.
Requirement of certain additional documentation
Interestingly for each month after the due date of filing of return, taxpayers are paid interest at the rate of 6 percent.
Also, the delay could be from two end:
1. From the IT department’s end where the department is taking time to process the ITR and refund
2. It can be also from the bank’ end.
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