Key Reasons Why Tax Refunds Are Delayed?

Here’s the list of key reasons why income tax refunds are delayed:

1. Bank account not pre-validated

The key reason why taxpayers’ tax refunds are delayed is a technical mismatch. Tax income tax refunds are only issued to accounts that are pre-validated. Hence, the income tax department will not release your refund because your account is not prevalidated. This issue can be easily resolved online at the e-filing portal.

2. ITR not verified

The ITR filing process is only considered completed when you verify your return within 30 days of filing; otherwise, your return is considered incomplete. The verification process can be completed in two ways: online e-verification or signing the ITR-V form and sending it through speed post. If you fail to verify your return within the specified time limit, then processing stops completely.

3. Delay in responding to notices

Whenever the tax department finds any error in your return, it issues a defective return notice to the taxpayer, asking him/her to correct the stated mistake within 15 days. Taxpayers are also allowed to request an extended time limit if they feel so. If you ignore this notice, it can lead to a several-month delay in your tax refund.

4. Incorrect claims in deductions or exemptions

Always make sure you are availing yourself of correct and genuine deductions or exemptions in your tax return, because the tax department closely checks such claims and, if it finds anything incorrect, can pause your refund processing and can even lead to the imposition of heavy penalties. If, by chance, a mistake was made in filing and the mistake was not intentional, you can file a revised return in that case.

Always make sure you are not making any of the aforesaid mistakes if you want to receive your tax refunds timely.

Step-by-Step Procedure to Check Refund Status

Here is the step-by-step procedure to check income tax refund status online at the e-filing portal:

• Step 1: Visit the income tax e-filing portal at https://eportal.incometax.gov.in/iec/foservices/#/login.
• Step 2: Log in to your account using PAN/Aadhaar/Other ID and then enter your password on screen.
• Step 3: Navigate to the e-File tab, then select ‘Income Tax Returns,’ and click on ‘View Filed Returns.’
• Step 4: Choose the appropriate assessment year, i.e., AY 2025-26.
• Step 5: Select ‘View Details’ to see your return and refund status. The screen will display three options: ITR processing status, refund status (issued/failed/under processing), and date of refund issue and amount (if already released).