The year is about to end, but your income tax refund hasn’t yet reached your bank account. If so, there’s no need to despair, The Income Tax Department has rapidly begun issuing refunds to remaining taxpayers. CBDT chief Ravi Agarwal made the unprecedented announcement in November that everyone’s refunds would reach their bank accounts by December. The best news is that if you receive your refund in December, you’ll receive a larger amount than expected.
Why are taxpayers receiving higher refunds
If your refund hasn’t arrived yet, don’t worry, but be happy. The Income Tax Department is also charging interest on your refund. Therefore, if you receive your ITR refund in December, it will definitely be higher than you expected. Taxpayers who received refunds in the last few days have indeed received a larger amount than expected.
Why is the Income Tax Department giving you more money? According to Section 244A of the Income Tax Act, if the Income Tax Department delays issuing a refund, you are charged interest on it. This is why taxpayers receiving refunds in December are receiving more than expected. Under the law, if a refund is delayed, interest at the rate of 6% is added to the taxpayer’s refund.
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5 Major Reasons for Delayed ITR Refunds
Sometimes, ITR refunds are delayed not due to the department’s fault, but due to errors made by the taxpayer. Here are five major reasons for delays:
Sometimes, there is a mismatch between the form and data, preventing the Income Tax Department from processing your file further.
Some people, in a hurry, enter the wrong bank account number while filing their ITR, causing refunds to be delayed.
Some taxpayers have high-value refund claims in their files, which take time to process.
For some taxpayers, refunds are withheld due to past taxes or adjustments.
Refund delays are also often caused by technical issues.
Taxpayers are advised to keep their bank accounts verified and regularly check their refund status on the Income Tax Department portal.
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