ITR Filing Guide: 5 Common Mistakes That Can Delay Your Income Tax Refund:

Taxpayers expecting an income tax refund this tax-filing season have to do more than file their Income Tax Return (ITR) before the deadline. Even after the return has been filed, small errors like an unvalidated bank account, incorrect tax details, or unpaid tax demand can hold up the refund.

The income tax refund is given when the tax paid in the financial year through Tax Deducted at Source (TDS), advance tax or self-assessment tax is more than the actual tax liability. The Income Tax Department, however, will process the refund only when the ITR is successfully verified and all the details match with its records.

5 things to do before you file your ITR

1. Bank account pre-validation

The bank account to be credited should be pre-validated in the Income Tax e-filing portal. Verify if the account is active and account number, IFSC code and account holder name are correct. Refunds are only available for validated bank accounts.

2. Check for pending tax demand

Check if there are any pending tax demands from previous assessment years before filing the ITR. As per Section 245 of the Income-tax Act, the Income Tax Department can adjust your refund of the current year against any demand which is pending once you receive notice.

3. Verify whether your PAN is linked with Aadhaar

If your PAN is not linked to Aadhaar, it can become inoperative and create problems in getting your refund. The PAN-Aadhaar link must be checked before filing the return.

4. Reconcile Form 26AS, TDS & AIS

Before filing ITR, it is advisable to reconcile the TDS details in Form 26AS and the Annual Information Statement (AIS) with Form 16, bank interest certificates and other income records. Any mismatch could lead to delay in processing your refund.

5. E-verify your ITR within 30 days

Filing the return is not enough. You must e-verify it within 30 days. Until the return is verified, it is considered incomplete and the refund process will not begin. Taxpayers can verify their ITR through Aadhaar OTP, net banking, a pre-validated bank account or other approved methods.

What if my refund is late?

Post-verification of the ITR, the taxpayers can check the status of their refund on the e-filing portal of the Income Tax department. If the refund fails because of incorrect bank details, they can update and revalidate the bank account and submit a refund reissue request.

If the department adjusts the refund against an old tax demand under Section 245, taxpayers should inspect the notice carefully and reply within the time given if they disagree with the demand. Under section 244A of the Income-tax Act interest on delayed refunds is also payable to eligible taxpayers.