ITR Refund: Know how to check income tax refund status and what to do if it’s delayed

Taxpayers who have overpaid their taxes throughout the financial year can claim a refund by filing their ITR. It is typically credited directly to the bank account specified during the filing process.

This year, many taxpayers in India have reported delays in receiving their refunds, leading to frustration and concern. Understanding the timeline for processing refunds, the potential reasons for delays, and how to check the status of your refund can help ease this anxiety. Here’s all you need to know.

The duration for ITR refunds and processing:

Once an Income Tax Return (ITR) is filed, the Income Tax Department typically processes refunds within a few weeks. However, recent advancements in automation and data analytics have significantly expedited this process and allowed for quicker verification of tax returns, enabling most taxpayers to anticipate receiving their refunds much faster than in previous years.

While the majority of taxpayers will receive their refunds promptly, it’s crucial to be mindful of possible delays brought on by things like complicated returns or discrepancies in the data submitted.

The common reasons for delays in refund processing include:

Understanding the reasons behind delays in income tax refunds can help taxpayers navigate the complexities of the filing process and ensure they receive their refunds promptly. Here are some common factors that may contribute to such delays, along with guidance on how to address them.

• Additional information requirements: The Income Tax Department may request additional information from taxpayers, halting the refund process until the assessment is complete.
• Mismatched calculations: The Department verifies tax liability against the calculations provided; if discrepancies arise, a notification detailing the payment amount is provided. If errors are found, taxpayers can file a rectification return under Section 139(4).
• Incorrect bank account details: Taxpayers must ensure accurate bank account numbers during the filing process to avoid refund processing delays.
• Bank account validation: Refunds are processed only to pre-validated bank accounts.
• Processing time considerations: The volume of returns filed can lead to processing delays, and taxpayers must e-verify their returns within 30 days of filing.
• Discrepancies in Form 26AS: If Tax Deducted at Source (TDS) details in the income tax return do not match the information in Form 26AS, it could lead to refund delays.

Step-by-step guide on checking ITR refund status:

Checking the status of your income tax refund is a straightforward process that can be done through the official Income Tax e-filing portal or the NSDL website. Below is a step-by-step guide to help you navigate this process effectively.

Step 1: Visit the Income Tax e-filing portal.

Begin by accessing the official Income Tax e-filing portal at http://www.incometax.gov.in. Once there, log in using your user ID, which is typically your Permanent Account Number (PAN), along with your password. If you have not yet registered on the portal, you will need to complete the registration process before proceeding.

Step 2: Navigate to refund status

After successfully logging in, locate the ‘My Account’ section on the homepage. From the dropdown menu, select ‘Refund/Demand Status.’ This will direct you to the relevant page for checking your refund status.

Step 3: View the refund status

You will be taken to a page that displays the current status of your refund. Here you can find important details, including:

• Assessment Year: The year for which the return was filed.
• Mode of Payment: How the refund will be issued (e.g., bank transfer).
• Reference Number: A unique identifier for your refund request.
• Status of Your Refund: This could range from ‘Refund issued’ to ‘Refund not determined’ or ‘Refund failed.’ Each status provides insight into where your refund stands in the processing timeline.

Alternative Method: NSDL Portal

If you encounter difficulties accessing the e-filing portal or prefer an alternative method, you can check your refund status via the NSDL website.

Step 1: Visit the NSDL Portal

Navigate to the NSDL portal at tin.tin.nsdl.com.

Step 2: Enter details

On the NSDL page, input your PAN, select the appropriate assessment year, and enter the captcha code displayed. Click on ‘Proceed’ to view your refund status.

Tips to ensure smooth and timely processing of ITR refunds:

• Ensure accurate ITR details and correct bank account details for direct refund credit.
• Verify your ITR post-submission via Aadhaar OTP, Net Banking, or physical copy to the Centralised Processing Centre (CPC) in Bangalore.
• Check for notices from the Income Tax Department via registered email and e-filing portal.
• File a rectification request under Section 154 of the Income Tax Act if discrepancies or errors occur.
• Track refunds through bank account and bank statement for timely notification.

Additional tips:

If your refund is delayed beyond the typical processing timeframe, consider the following steps:

1. Contact the Income Tax Department: You can reach out to the Income Tax Department by calling their helpline at 1800-103-4455 or emailing them at ask@incometax.gov.in. They can assist with your refund status.
2. Visit your local income tax office: In cases where the delay persists, you may want to visit your local income tax office to inquire directly about the status of your refund. Bring any relevant documentation to facilitate the inquiry.
3. Submit a grievance: If you are unable to resolve the issue through the previous steps, consider lodging a grievance on the e-filing portal. Navigate to the ‘e-Nivaran’ section, where you can formally escalate your issue and seek a resolution.

Understanding the process and taking proactive steps, individuals can ensure they receive their refunds promptly. With the right preparation and awareness, the experience of filing taxes and receiving refunds can be a smooth and rewarding one.