Synopsis: Many taxpayers have not yet received their income tax refunds even after two and a half months of filing their returns. Delays often arise due to issues like incorrect bank details, unverified ITR, defective return notices, or incorrect deduction claims.
Why Your Income Tax Refund Is Delayed: Key Reasons Explained
Income tax refunds generally reach taxpayers’ bank accounts within 3–4 weeks of filing the return. Smaller refunds are often processed faster, while larger refund amounts may take additional time. However, this year many taxpayers are experiencing delays even after a considerable period.
Experts suggest that most refund delays happen due to a few common procedural issues. Understanding these reasons can help taxpayers resolve the problem quickly.
1. Incorrect Bank Account or Bank Not Pre-Validated
Refunds are issued only to pre-validated bank accounts. If your bank account is not pre-validated or contains incorrect details, the Income Tax Department cannot process the refund.
You should check on the income tax e-filing portal whether:
- Your bank account is correctly entered
- The account is pre-validated
- The account is selected for receiving the refund
If the bank details are incorrect or not validated, update them and complete the validation process to ensure refund credit.
2. ITR Filed but Not Verified
After filing your ITR, you must verify it within 30 days. Until verification is completed, the Income Tax Department will not process the return.
Verification options include:
- E-verification through Aadhaar OTP, net banking, bank account, or demat account
- Offline verification by sending the signed ITR-V to CPC Bengaluru via speed post
If verification is missed or delayed, the return is treated as not filed, and no refund will be issued until corrective steps are taken.
3. Delay in Responding to Defective Return Notices
If your return contains errors or missing information, the Income Tax Department may issue a defective return notice. Taxpayers are usually given 15 days to correct the issues.
Failure to reply in time or failure to correct the defects may result in the return being treated as invalid, causing significant refund delays.
- Always check the “e-Proceedings” section on the portal
- Respond to notices within the stipulated time
4. Incorrect Claims for Deductions or Exemptions
The Income Tax Department cross-checks all deductions and exemptions claimed in an ITR. If they find discrepancies or incorrect claims, they may hold the processing of the return.
Common issues include:
- Mismatched data with Form 26AS or AIS
- Incorrect section claims
- Unsupported exemption amounts
If you realise any claim is incorrect, you can file a revised return to avoid delays.
📌 Key Takeaway
Income tax refund delays usually arise due to issues like bank account validation errors, unverified ITRs, unresolved defective notices, or incorrect deduction claims. Regularly checking the e-filing portal and correcting issues promptly helps ensure faster refund processing.
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