4 Reasons To Know Why Your Tax Refund Could Be Delayed

In case if you have paid more tax to the IT department than your tax liability , it is by filing tax returns that you let the IT department know about the excess payment. After verifying your details, the tax department then processes your refund.It can take 30-45 days for the IT department to process the refunds. So, if you have filed your returns before July 31, you should receive your refund by September. However, refunds are often delayed due to several reasons.Here are a few reasons that might be responsible for the delay-

Taxpayers are not only required to file their tax returns but also verify it. Your ITR will not be considered valid if you do not complete the verification. To make things easier, the IT department allows the taxpayers to verify their ITR in multiple ways such as-

• Aadhar-based OTP
• Generating EVC (Electronic Verification Code) via bank account
• Generating EVC via net-banking
• Generating EVC through Bank ATM
• Verifying ITR through Demat account
• Sending a physical copy of ITR-V/Acknowledgment receipt

Your refund might get delayed if there are any errors in your income or tax amount. For instance, if the TDS details on your Form 26AS do not match with the details on your Form 16, the IT department will not be able to verify your income and tax amount correctly.Also, if any adjustments are proposed under Section 143(1)(a) or if you receive a defective notice under Section 139(9) from the department, your refund will only be processed once you make the adjustments or rectify the mistakes.

The refund amount is usually directly deposited into your bank account. But what if you have made a mistake in your bank account details at the time of filing your ITR? Here are some common bank account details errors.

• An error related to your account number, IFSC code, etc.
• You have not pre-validated the bank account.
• The bank details mentioned are not linked to your PAN.

The IT department will not be able to process your returns in such cases.

In 2019, when the government extended the returns filing deadline to August 31, out of the 5.65 crore taxpayers who filed ITR, more than 1.45 crore of them filed it between August 27 and August 31.This creates a backlog for the IT department and delays the processing of refunds. So, if you have filed your ITR very close to the deadline or on July 31, processing of your tax refund could take longer than the average 30-45 days.

If you are eligible to receive a refund from the IT department, ensure that you e-verify the returns after filing. After successful filing, make sure that you regularly check your email account and your e-filing account for any communication from the tax department.Alternatively, you can also log in to the e-filing portal to check the status of your refund. After logging in, visit 'My Account' and then click on 'Refund/Demand Status'. You will be provided detailed information on your return, including the reason for delay or failure if any.If you are unable to get any status update, you can then submit your grievance online with the help of an e-Nivaran form. But make sure that you only submit a grievance form after waiting for 45-60 from the returns filing date and thoroughly checking your email account and e-filing account for any communication from the tax department.Ready to make the most of your money? Start your tax planning journey now!

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.