Income tax refund delay occurs due to various factors which may include issues with verification, errors or incorrect information in the tax return, discrepancies in bank details, or high amount of refunds being processed.
Income tax refund refers to the amount which is initiated by the income tax department when the amount of tax paid by taxpayer exceeds actual tax liability (via TDS, TCS, Advance Tax, or Self-Assessment Tax) .
Over 90 Lakh Income Tax Refunds Still Unprocessed
Many taxpayers after filing the income tax returns are still waiting for their refunds nearly from a month.
The income tax refund delay by the Central Board of Direct Taxes led to the surge in searches.
Total ITRs filed is over 7.51 crore and 7.37 crore are verified, only 6.47 crore ITRs were processed for refunds upto 1st week of September 2024, leaving over 90 lakh still pending i.e., 12.21% of the verified ITRs are remain unprocessed.
Common Reason for Income Tax Refund Delay
Bank Pre-Validation Failed
Bank pre-validation failed may be because of the name on your PAN card doesn’t match your bank account name, or due to changes in your bank branch or mergers.
Delay in Processing
Your ITR has not been processed due to it was not e-verified, or the tax department is delayed in processing.
Claimed Extra Deductions
May be you have claimed deductions apart from what’s in Form 16, so your ITR processing needs additional confirmation.
Mismatch in Form 26AS and ITR
Form 26AS and ITR filling mismatch for which leads to defective notice.
Refund Adjusted
Refund adjusted for previous year outstanding tax demand.
What to do if tax refund is delayed beyond the usual 4-5 weeks?
If your tax refund is delayed beyond the usual 4-5 weeks, you can request a refund re-issue.
How to raise ‘Refund Re-issue’ request?
To raise a refund re-issue request:
- Log in to the income tax e-filing portal.
- Go to the “Services” tab and click on “Refund Reissue.”
- Select the Assessment Year for the failed refund and click “Continue.”
- Review and validate your bank details.
- Submit the request.
Once the request is submitted the Income Tax Department will review and process your request to ensure the refund is credited correctly.
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FAQs
This is a technical error. But ensure that the bank account is linked with your PAN, validate the bank account and nominate for refund to re-initiate the refund for CPC.
You can simply nominate any other validate bank account and raise a refund re-issue request. In case bank account does not get validated within 30 days, it will be moved to non validate status. Taxpayers can then re-validate it.