As tax season wraps up, many taxpayers find themselves anxiously awaiting their income tax refunds. However, a large number of people are still waiting for their refunds despite having filed their income tax returns (ITRs) on time. This delay has left many confused and frustrated, wondering when their refunds will finally arrive.

Why the Delay?

According to officials from the Income Tax Department, there are no procedural hurdles from their side that should cause a delay. However, they acknowledge that in some cases, delays can occur due to investigations or errors in tax calculations. Additionally, if there are issues with the taxpayer’s bank account details or errors in account verification, the refund process can be further slowed.

Typical Refund Timeline

Generally, the refund process takes about one to one and a half months. However, if there are mistakes in the ITR, the Income Tax Department will notify the taxpayer via email or message. The officials also point out that there is no fixed time limit for refunds, especially in cases where taxpayers have made errors in their returns and are demanding a higher refund. In such cases, the investigation process becomes more time-consuming.

What to Do if Your Refund is Delayed

If you believe that you have filled out your ITR correctly but still haven’t received your refund, there are steps you can take to resolve the issue. You can check the status of your ITR and use the “Grievance” option on the e-filing portal to ask related questions. This feature is designed to provide taxpayers with satisfactory answers to their concerns.

It’s also worth noting that if you forget to complete e-verification after filing your ITR, your refund may get stuck.

Common Mistakes That Can Delay Your Refund

Several common mistakes can lead to delays in receiving your refund. These include:

• Incorrect Bank Details: If the bank account number, IFSC code, MICR code, or name of the account holder is incorrect, your refund may be delayed.
• Unverified Bank Account: If your bank account has not been verified on the e-filing portal beforehand, this can also cause a delay.
• Incomplete KYC: If the Know Your Customer (KYC) process is not completed, there may be issues in processing your refund.
• Incorrect Account Type: Filling in the wrong account type on your ITR can also create problems.

Rising Number of ITR Filings

This year saw a significant increase in the number of ITR filings, with over 7.28 crore returns filed by July 31—a 7.5% increase from the 6.77 crore returns filed by the same date in 2023. Interestingly, a large number of taxpayers have opted for the new tax system this year.

Final Thoughts

While delays in receiving tax refunds can be frustrating, understanding the potential causes can help you take proactive steps to resolve any issues. By ensuring that your ITR is accurate and all necessary verifications are complete, you can help ensure that your refund is processed as quickly as possible. If you do experience delays, don’t hesitate to use the resources provided by the Income Tax Department to get answers and take the necessary actions.