Income Tax Refund Not Received? Know Reasons and Solutions
Have you filed your income tax return and are still waiting for your refund? Many taxpayers experience delays and often get confused about what to do. Even though the refunds are being issued faster than in previous years, there are still several factors that can slow the refund process, such as incorrect details in the return, verification issues, or delays from the Income Tax Department’s side. However, you can easily check the status of your refund online through the official Income Tax portal.
Key Reasons for Income Tax Refund Delay
Here are some main reasons for the delay in processing your income tax refunds:
Bank Account Not Validated or PAN Not Linked
For your refund to be credited without any issue, your bank account must be linked to your PAN and validated on the Income Tax portal. Without a validated bank account, even if your refund is approved, it will not be released into your bank account. You can check the status of your bank account under the “Profile” section by selecting “My Bank Account“. If your account is not validated, you should revalidate or add a valid account.
Refund Adjusted Against Outstanding Tax Demand
Sometimes, the Income Tax Department adjusts your refund against previous unpaid tax dues. This is known as adjustment against outstanding demand. You can check this by logging into the e-Filing portal and visiting the “Pending Actions” section, then selecting “Response to Outstanding Demand“. If any demand is mentioned against your PAN, you will be given the option to either pay the amount or submit a response if you disagree.
Incorrect or Mismatched Bank Details
Many times, refunds are delayed because the bank details provided in the return are incorrect or are not up-to-date. A wrong account number, an invalid IFSC code, etc., can result in failure in crediting the refund. Taxpayers should always carefully check their bank information while filing the return and ensure the account is active and correct.
Return Not Verified
Filing your income tax return is only one part of the process. The ITR filing is incomplete until you verify the return after the submission. If your return is unverified, it is treated as if it were never filed, and refund processing will not start.
PAN-Aadhaar Not Linked
If your PAN is not linked to your Aadhaar card, it may be treated as inoperative, which will delay the refund process. Therefore, make sure your PAN and Aadhaar are linked.
Returns Selected for Scrutiny
If the Income Tax Department suspects a return or finds a mismatch like high deductions, then your returns may be transferred for manual scrutiny by an assessing officer for the scrutiny, which delays the refund process.
The first step is to check the status online. The Income Tax Department provides two ways to track your refund: one is by using the Income Tax e-Filing portal, and the other is the NSDL/TIN portal, depending on the assessment year.
How to Check Income Tax Refund on Income Tax Portal
The Income Tax e-Filing Portal can be used to track the refund status for recent assessment years.
- Step 1: Go to the official Income Tax e-Filing Portal.
- Step 2: Log in using your PAN, password, and the captcha code.
- Step 3: Go to e-File, then go to Income Tax Returns and click on View Filed Returns.
- Step 4: Find the relevant Assessment Year and check the status of return processing.
If it says “Return processed with refund“, it can be cross-verified in the intimation notice issued to the email of the taxpayer or is also available on the portal.
Step 5: To see if the refund has been released, go to Services, and click on Know Your Refund Status on the portal and enter the required Assessment Year.
How to Check Refund Using NSDL/TIN Portal.
Taxpayers cannot use these steps for the refund due determined on or before March 31, 2023. For such refunds, you are required to use the NSDL/TIN Portal.
- Step 1: Visit the NSDL/TIN Refund Status Portal
- Step 2: Enter your PAN and Assessment Year.
- Step 3: Click Submit to view your refund status.
