Timely filing of your income tax return generally leads to quicker refunds. However, various factors can sometimes delay the process. Understanding the reasons behind these delays and the actions you can take can help you resolve issues efficiently. Here’s what you need to know if your income tax refund is delayed.

What is an Income Tax Refund?

An income tax refund arises when you have paid more tax than your actual tax liability through TDS, TCS, or advance tax. In essence, it’s a reimbursement for the excess amount you’ve paid.

Calculation Formula:

• If TDS, TCS, or advance tax > Final Tax Amount: You get a tax refund.
• If Final Tax Amount > TDS, TCS, or advance tax: You owe additional tax.

For example, if your total tax payment for FY 2023-24 is ₹10,000, but your actual tax liability is ₹8,000, you are entitled to a refund of ₹2,000. After filing and verifying your return, the tax department will process it and typically issue the refund within four to five weeks.

Common Reasons for Refund Delays and How to Resolve Them

Reason for Delay	Action Plan
Refund Request Rejected	The tax department will compare your tax calculations with theirs. If discrepancies are found and you owe additional taxes, you’ll receive a notice. Review your documents, correct any errors, or file a rectification return under Section 139(4) if needed. If the tax return was incorrect, pay the outstanding amount as per the notice.
Incorrect Bank Account Number	Verify and correct the bank details you provided during tax filing.
Bank Account Not Pre-Validated	Refunds are only credited to pre-validated bank accounts. Ensure your bank account is pre-validated on the income tax e-filing portal. Follow the steps for pre-validation [here].
Mismatch in Bank Account Name	The name on your bank account must match the name on your tax return exactly. If there’s a discrepancy, update your details to ensure successful credit of the refund.
Bank Account Details Changed	If your bank account details have changed, raise a grievance on the income tax portal. You may also need to submit updated bank details via email to orm@cpc.incometax.gov.in with the required documents.
Refund Request Under Process	Delays may occur due to high volume of returns. Check your refund status on the income tax portal. Ensure that your return was e-verified within 30 days and verify the IFSC code for your bank account.
Return Under Scrutiny	If selected for scrutiny, the refund process might be delayed until the assessment is completed.
Mismatch in Form 26AS	Ensure that the TDS information in your tax return matches Form 26AS. Discrepancies, if any, can delay your refund processing process.
Physical Filing Instead of Online	Physical returns take longer to process. If you have filed a physical return, wait for the IT department to complete the reconciliation.

What to Do if You Still Haven’t Received Your Refund

If your refund hasn’t arrived, you can request a reissue by following these steps:

1. Visit the income tax e-filing portal and log in to your account.
2. Navigate to “My Account” and select “Refund Reissue”.
3. Click “Create Refund Reissue Request” and fill in the necessary details, including your PAN, assessment year, and refund amount.
4. e-Verify the request and submit it.

How to Check Your Refund Status

To check your refund status, follow these steps:

1. Log in to the income tax e-filing portal.
2. Go to ‘e-File’ > ‘Income Tax Returns’ > ‘View Filed Returns’.

3. Select the relevant assessment year and check the ITR status. Click on ‘View details’ to see the refund status.

4. If your ITR has been processed but the refund has not been issued, it will show as ‘Processed with refund due’.

 Refunds typically take 20 to 45 days after processing to be credited in your Bank account. You can also check the status on the TIN-NSDL website here by entering your PAN, assessment year, and captcha code.

What Does the Status Indicate Once the Refund is Received?

When your refund is successfully issued, the status will be updated to ‘Refund Issued’. This will provide details such as the mode of payment, refund amount, and clearance date.

By staying informed and taking timely action, you can manage any delays in receiving your income tax refund effectively.

FAQ’s

My income tax refund is not processed. How do I escalate this?
If you have filed your income tax return and have not received your refund within a reasonable time frame, first ensure that you have completed the e-verification process. If your ITR-V has been verified, and you still haven’t received your refund, you can escalate the issue by contacting the Central Processing Centre (CPC) through their helpline numbers: 1800 103 0025, 1800 419 0025, or 080-61464700, available Monday to Friday from 8:00 am to 8:00 pm. You may also file a grievance through the e-filing portal for further assistance.

How do I check the status of my income tax refund?
To check the status of your income tax refund, log in to your e-filing account. Navigate to ‘e-File’ > ‘Income Tax Returns’ > ‘View Filed Returns’. Select the relevant assessment year to view the status of your ITR. The status will indicate if your refund is processed or if there are any issues.

What is the condonation of delay?
Condonation of delay is a process where you request the Income Tax Department to accept a late submission or verification of your ITR. This applies if you missed the deadline for filing or verifying your return. The ITR will be considered valid only after the condonation request is approved by the competent Income Tax Authority.

What does it mean if my return is under scrutiny?
A return being under scrutiny means the Income Tax Department has selected it for a detailed review to ensure accuracy and compliance with tax laws. This process can delay the issuance of your refund as the department conducts a thorough examination of your return.

What should I do if there is a mismatch in Form 26AS?
If there is a discrepancy between the TDS details in your tax return and Form 26AS, it can delay your refund. Review both documents carefully to identify and rectify the mismatches. You may need to contact your employer or the deductor to correct any errors in Form 26AS.

What if my bank account details have changed after filing my return?
If your bank account details have changed after filing your return, you should update your bank details in the e-filing portal and raise a grievance if necessary. The Income Tax Department might ask you to provide updated bank details along with other required information to process your refund.

Can I get my refund if I filed my return offline?
Yes, you can still receive your refund if you filed your return offline. However, processing physical returns takes longer than e-filing. Make sure your return is complete and accurate to avoid further delays.

What should I do if I receive a notice from the Income Tax Department regarding my refund?
If you receive a notice from the Income Tax Department, review it carefully to understand the reason for the notice. It may require you to provide additional information or correct errors in your return. Respond promptly to ensure your refund is processed without further delay.

How long does it usually take to receive a refund after processing?
Typically, it takes about 20 to 45 days to receive your refund after the Income Tax Department has processed your ITR. If there are no issues, this time frame allows for the finalization and crediting of the refund to your bank account.