Income Tax Refund: Why Income Tax Department Hasn’t Sent Your Refund Yet

Some people haven’t received their income tax refund yet because the tax department found mistakes in their tax return. This happens when the information in the return do not match the details available with the department.

Another major reason for refund delay is that the ITR has not been verified. If the return is not verified, it will be considered as invalid, and the refund will not be processed until verification is completed.

Reason for Refund Delay

The following are some of the major reasons for income tax refund delays:

Inaccurate Bank Account Details

Sometimes refunds don’t come because the bank account details are inaccurate or outdated. You can only get the refund in a bank account that is connected to your PAN and approved on the portal. If the account is inactive or closed then you won’t be able to get refund.

Mismatch in Income

The tax department cross-verify your tax return with details available in Form 26AS, AIS, and TIS. The department check all information reported by banks, employers, mutual funds, and other institutions. If the income shown in these records does not match what you have declared, the department may hold your refund and send you a notice asking you to explain the difference.

Section 143 (1) Intimation

Sometimes, you may get a notice under Section 143(1). It is just an initial check by the tax department to let you know whether your return is accepted as it is or if any changes have been made. If the message shows a lower refund or says you need to pay extra tax, it is usually because of calculation errors, deductions not allowed, or a mismatch in TDS details.

For Clarification

Sometimes, the tax notice you get is just asking for more information or clarification. This can happen if you reported huge transactions, claimed large deductions, or earned money from capital gains or abroad.

Outstanding Tax Demands

Sometimes, tax refunds can be delayed if there are unpaid tax dues from earlier years. Even a small pending amount can be adjusted against your current refund. When this happens, the tax department usually informs you that your refund has been used to clear old dues. You should log in to the income tax portal and check whether the pending demand is correct. If it is wrong or you have already paid it, you need to submit a reply online to avoid unnecessary adjustment.

What Should Taxpayers Do?

Taxpayers must follow the below-mentioned steps:

Step 1: Log in to the income tax e-filing portal.

Step 2: Verify the communication under the “e-Proceedings” and “Pending Actions” tabs.

Step 3: Download the notice or intimation, read it carefully, and match it with your return, Form 26AS, and AIS.

Step 4: If the department’s calculation is right, accept it. If it’s wrong, explain why with supporting documents.

It is also important to keep an eye on your refund on your own. Even if you don’t get a notice, refunds can take a while, especially when lots of people are filing. If your status shows ‘Refund issued’ but you haven’t received the money, check with your bank.

Ignoring tax notices can cause big problems. But if you reply quickly and correctly, things usually get sorted out faster, and you can get your refund sooner.