Income Tax Refund: Big new for taxpayers. Many taxpayers still haven’t received their refunds. Refunds typically arrive in taxpayers’ bank accounts within 3-4 weeks of filing their income tax returns. Returns involving smaller amounts are processed more quickly, while refunds involving larger amounts take a little longer. However, refunds can also get stuck due to certain reasons. Let’s explore these reasons in detail.

1. Wrong bank account or bank account not valid

Pre-validation of your bank account is essential for receiving an Income Tax refund . You need to check whether your bank account is pre-validated by visiting the Income Tax Department’s e-portal. The Income Tax Department only sends refunds to pre-validated bank accounts.

2. ITR not verified

After filing your income tax return, it must be verified. It can be e-verified online. There’s also the option to verify it offline. This requires signing the ITR-V and sending it by speedpost to the Centralized Processing Unit (CPC) in Bengaluru. The return must be verified within 30 days of filing. Unverified returns are not processed by the Income Tax Department.

3. Delay in responding to defective return notices

The Income Tax Department issues a notice to taxpayers for any defects in their returns. They are instructed to rectify the defects within 15 days. If a taxpayer requires more time, they can request one from the Income Tax Department. Failure to respond to the notice in a timely manner may result in the return being processed, potentially delaying their refund.

4. Falsely claiming deductions or exemptions

The Income Tax Department scrutinizes claims for deductions and exemptions. If the department determines that a taxpayer’s claims for deductions or exemptions are incorrect, it may not process the return, resulting in a refund being held up. If a taxpayer believes they have claimed an incorrect deduction, they can file a revised return.