ITR Refund Update: The year is about to end, but many people haven’t yet received their income tax refunds. If your refund is stuck, there’s no need to worry. The Income Tax Department has resumed issuing pending refunds. In the past two days, thousands of people have received their pending refunds in their bank accounts. CBDT Chairman Ravi Agarwal has already announced that all taxpayers will receive their refunds by December.
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Receiving More Refunds Than Expected
Even if your refund hasn’t arrived yet, there’s no need to panic, as all taxpayers will receive their refunds this month. The Income Tax Department also adds interest to refunds issued late. Therefore, those who received refunds in December received more than they expected.
Why are refunds being issued more?
The Income Tax Department charges interest on delayed refunds. Under Section 244A of the Income Tax Act, if a refund is not issued on time, the taxpayer receives an additional amount along with 6% annual interest. This is why those who received refunds in December received more than the stipulated amount.
Why are ITR refunds delayed?
There can be many reasons for refund delays. Sometimes, your form or data mismatches, halting the process. Some people enter incorrect bank account numbers when filing their ITR, which causes refunds to be delayed. In many cases, the refund amount is large, which causes the department to take time to verify it. Refunds can also be delayed due to old tax dues or adjustments. Technical issues also contribute to refund delays.