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    Monday, December 11, 2023

      Why You haven’t Received Your Income Tax Refund for FY23 | Check Reasons and Solutions for ITR Refund Delays

      Many taxpayers plan investments or family vacations around their expect tax refunds. So, you might not have receive your tax refund for fiscal year 2022-23 for many reasons. 

      A common reason for not receiving tax refunds promptly is incorrect or incomplete information in the Income Tax Return (ITR) form.

      Any discrepancy in banking details, residential address, or email ID could cause a delay in your tax refund.

      So, ensuring the accuracy of the information provide is crucial when filing your ITR. 

      Adv Ashish Mishra, Founder, Daily Tax, said :

      “Reasons for delay in ITR processing could be incorrect bank details mentioned by the taxpayer on account of which the refund is not received. Sometimes, the taxpayer inadvertently misses validating the return uploaded on the portal. A return that is not validated will not be processed, and hence, taxpayers should double-check this. It is also possible that the tax officer requires some additional documents supporting the taxpayer’s claims in the return. In such cases, the tax officer would send intimations requesting the taxpayer to provide these. Once these are verified by the tax officer and approved, the return would get processed.” 

      Other reason for a delay tax refund is failing to verify your ITR.

      According to the Income Tax Department in India, taxpayers must verify their returns using either an Electronic Verification Code (EVC) or an Aadhaar-based One-Time Password (OTP) after submitting the paperwork.

      If an ITR is not verified within 120 days of filing, it is deem invalid, which can prevent the issuance of the tax refund. 

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      Adv Ashish Mishra, said :

      “The time taken for processing refunds has reduced over the last few years. As per the latest available data, out of the 3 lakh and odd crores of refunds issued during FY 22-23, 60% have been issued within 60 days of filing of return of income. In the remaining cases, the time frame could vary on a case-to-case basis depending upon the facts.”  

      However, You should be aware of the following points : 

      • Filing of returns is complete only when the verification process is complete, either e-verification or otherwise. Only then will the refund be process. 
      • If any past tax demands are still outstanding, the assessing officer has the power to adjust the refund due to the assessee against the past due after due intimation. 
      • Further, suppose there are any open assessments or reassessment proceedings. In that case, the assessing officer has the power, subject to certain conditions, to withhold the refund until such assessment or reassessment is complete. 
      • In other cases, the refund processing gets delay due to reasons such as the difference between the TDS credit claim in the return and in Form 26AS, data mismatch between AIS and the return, etc. 
      • The assessees are advise to regularly check the emails or e-filing log-ins for any intimation or notice from the department. In other cases, after waiting for a reasonable period, the assessees can raise a grievance for non-receipt of refund. 

      So, what can you do if you haven’t receive your tax refund?

      Keep an eye on your register email ID and mobile number for any communications from the Income Tax Department.

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      You can also check the status of your refund by logging in to the e-filing portal of the Income Tax Department. 

      As many factors may delay your tax refund for FY2022-23, ensuring that your ITR is correctly fill and promptly verified should expedite your refund process.

      The deadline for filing income tax returns was set for 31st July, 2023, after which penalties are applicable.

      There’s a window for filing with penalties until 31st December 2023.

      Individuals with an annual income below Rs 5 lakh will face a fine of Rs 1,000, while those with higher incomes will incur a higher penalty.

      When you’ve filed your income tax return, it’s crucial to complete the process of e-verification.

      Failing to do so will render your ITR invalid, necessitating a second filing.

      This is vital for receiving any refunds.

      Refund Issues

      • Eligibility : Some taxpayers don’t receive refunds as they’re not eligible. If you’re eligible and the tax website confirms it during filing, you should expect a refund.
      • Accurate bank details : Your bank account information should be both accurate and pre-validated. Pre-validation is essential; otherwise, you won’t receive a refund. Also, ensure your PAN card is link to the bank, with matching details, including the IFSC code.

      Important Steps for Refund

      • Eligibility confirmation : Ensure you meet the eligibility criteria for receiving a refund.
      • Accurate bank information : Make sure your bank details are accurate and pre-validated.
      • PAN and bank linkage : Your PAN details must align with your bank account details, including the IFSC code.
      • Verification timely : Complete the ITR verification process within 30 days; otherwise, your ITR won’t be consider complete.
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      If you’re still awaiting your ITR refund and a significant time has pass since filing, it might be stuck due to various reasons. Before delving into the reasons, check your refund status.

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