ITR Filing: Here's What To Do If Your Income Tax Refund Gets Delayed

For many taxpayers, filing an income tax return (ITR) is not just a legal responsibility but also a way to claim refunds against excess tax paid. The anticipation of receiving that refund, especially if it's a significant amount, can be high. But delays in getting your tax refund credited to your account can cause confusion and anxiety.

Generally, the Income Tax Department processes refunds in four to five weeks after filing of the ITR. However, the refunds could be delayed due to multiple factors, including discrepancies in your ITR filing.  

If you’ve filed your ITR and are still waiting for your refund, here’s what you need to know and the steps you can take.

1) Check The Status Of Your Income Tax Refund

If you’re waiting for your tax refund and wondering about its status, there are three ways to track it:

Through Income Tax Portal

·      Go to the Income Tax e-filing portal at https://www.incometax.gov.in/iec/foportal/ and log in using your credentials.

·      Navigate to ‘e-File’ > ‘Income Tax Returns’ > ‘View Filed Returns’

·      You’ll find a list of your filed returns. Select the relevant return as per the financial year to check the refund status.

·      Click on ‘View Details’ to see the current status of your income tax refund.

Through NSDL (TIN) Portal

·      Visit the NSDL refund tracking portal at https://tin.tin.nsdl.com/oltas/refund-status-pan.html.

·      Enter your PAN, select the Assessment Year for which the refund is due, and fill in the captcha code.

·      Click ‘Proceed’ under the ‘Taxpayer Refund (PAN)’ option.

·      You will be redirected to a page showing the latest status of your refund.

Through TRACES (Form 26AS)

·  Log in to the Income Tax portal - https://www.incometax.gov.in/iec/foportal/

·  Click ‘e-File’ > ‘Income Tax Returns’ > ‘View Form 26AS’.

·  You’ll be taken to the TRACES (TDS Reconciliation Analysis and Correction Enabling System) page.

·  At the bottom, click on ‘View Tax Credit (Form 26AS/Annual Tax Statement)’.

·  Choose the Assessment Year and select ‘Text’ as the view option.

·  You will be able to view detailed entries, including any refunds that have been paid.

2) Ensure ITR Is Verified

Many taxpayers forget to verify their ITR after submission. The return must be verified, either electronically (e-verification through Aadhaar OTP, net banking, etc.) or by sending a signed ITR-V form to the CPC in Bengaluru. An unverified return is considered invalid and will not be processed for a refund.

3) Check Bank Details

Sometimes, refunds are delayed because of incorrect bank account information. Log in to the income tax portal and verify that your bank account is pre-validated and linked to your PAN. If your refund was issued but failed, it could be due to a mismatch or an inactive account.

4) Wait For Processing Timeline

The Income Tax Department usually processes refunds within 20 to 45 days after ITR verification. But, during peak filing season or if your return involves high-value transactions, scrutiny, or complex cases, processing may take longer. In such situations, patience is essential.

5) Respond To Notices Promptly

If the department has raised any queries or sent notices, your refund may be on hold until the issue is resolved. Keep checking your registered email and the income tax portal for any updates or pending actions and respond promptly.

6) Contact The CPC

If a considerable time has passed after filing ITR and there’s still no refund, contact the Centralised Processing Centre (CPC) helpline numbers. You can find the numbers at https://www.incometax.gov.in/iec/foportal/contact-us

A delayed refund can be frustrating, but knowing the right steps can help resolve the issue efficiently. If needed, don’t hesitate to reach out to the tax department or a qualified tax advisor for help.