ITR refund delays: Key reasons taxpayers should be aware of
Refunds are usually sent smoothly after income tax return filing, but the majority of taxpayers witness untimely delays. Below are the leading reasons why your ITR refund is delayed and how to deal with them.
Refund delays explained Filming your tax return is half the process—receiving the refund into your account is what everyone awaiting a refund eagerly looks forward to. Even though most refunds are processed soon, delays do occur. Ranging from verification issues to information mismatches, several reasons can delay it. Understanding these causes can assist you in rectifying errors beforehand and receiving your refund deposited without wasting time.
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Processing delays at the department Amongst the most common reasons is the plain time being consumed by the Income Tax Department to check returns. Lakhs of returns are received during the peak season, which does cause delay in verification and refunds being made. This is generally temporary and refunds are made within a few weeks.
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Incorrect bank account details Incorrect or stale bank information is a leading cause. The refund will not be credited if the account number, IFSC code, or related account is incorrect. Taxpayers must pre-validate their bank account on the income tax portal so that the refund is credited successfully.
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Outstanding tax demand or mismatch If you have dues pending in the past or difference between tax credit claimed and TDS deposited, refunds can be adjusted against such dues. The department provides an intimation under Section 245 in such cases. You must check Form 26AS and AIS to ensure all credits are shown appropriately.
Late verification of returns Even after filing the ITR, refunds are credited only after verification. If you don't verify within the time frame specified, the return gets rejected. Aadhaar OTP or net banking facilitates quicker verification compared to sending a physical ITR-V.
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Scrutiny or additional checks At times the department may pick your return for detailed scrutiny or additional testing. This is usually performed when there is a large refund claim, suspect reporting of income, or high-value transactions. These take more time since the department may ask for clarifications or documents.
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Technical glitches Occasionally, technical issues on the income tax site or from the bank's end might cause refunds to fail. In such a situation, taxpayers may be required to re-authenticate their bank account or file a complaint on the site to make the refund succeed.
