Six Common Reason of Late Tax Refunds and How to Solve Them

If you’ve already filed your Income Tax Return (ITR) but haven’t seen your refund yet, don’t worry you’re not alone. Many people face the same situation. Usually, refunds are sent within a few weeks after the return is processed, but sometimes technical issues or small errors can slow things down.

What are the main reasons for delay in ITR refund?

Followings are the major reasons for delay in refund:

1. ITR not verified: If you don’t verify your return online, it won’t be processed. Verification is mandatory and you have to complete it within the specified time.

2. Inaccurate bank account details: If the bank details are wrong or the bank account isn’t verified. The department may double-check and this process may slow down your refund.

3. Mismatch in tax details: If the tax details you fill in your tax return don’t matchForm26AS or AIS, the department may double-check your return. This may slow down your tax refund.

4. Failure to link PAN with Aadhaar: If your PAN and Aadhaar are not linked, the government may block your tax refund.

5. Outstanding tax dues: if you owe taxes from earlier years, the tax department adjusts your current refund to pay those dues instead of sending the refund to you.

6. Manual Verification or investigation: Some returns are randomly selected for additional review, which may delay processing.

What’s the usual timeframe for a refund?

Usually people get their tax refund within four to six weeks of their return is processed but if your return needs extra checks or verification, it can take longer.

How to check your refund status?

Following are the steps to check your refund:

Step 1: Log in to the Income Tax e-filing portal.

Step 2: Go to the ‘Redund/Demand Status’.

Step 3: Or visit the TIN NSDL refund status page using your PAN and assessment year.

Step 4: Lastly, it will show your refund status.

What to do if your refund is late?

Here what to do if your refund is delayed:

• Verify your tax return online as soon as possible.
• Make sure your bank details are correct and linked for refunds.
• If the delay is significant, complain on the e-filing portal
• Respond to any notices received from the tax department