ITR Refund: Good news for taxpayers. If you filed your Income Tax Return (ITR) this year, there’s some good news for you. This year, the tax department’s refund issuance speed has been faster than ever. Refunds that previously arrived in bank accounts after months of waiting are now being received by many taxpayers within just seven to ten working days.
However, in cases where the data is mismatched or the tax calculations are complicated, the refund may still take 4 to 5 weeks or even a month to arrive. Let’s explore four mistakes that could cause your refund to be blocked.
Why is the refund coming so quickly?
The Income Tax Department’s backend system has undergone significant modernization and advancement in recent years, thanks to technology driving the prompt processing of refunds:
1. Automated data matching: The system now automatically cross-references the returns you file with your AIS and TDS information.
2. Real-time data integration: The tax system fetches real-time information directly from various sources like banks, companies, and brokers. If the data aligns perfectly with government records, refunds are swiftly approved.
It is crucial to e-verify your return promptly to initiate the refund process. Here are four common mistakes that can lead to refund delays:
1. Discrepancy in AIS and TDS data.
2. Providing incorrect bank account details.
3. Errors in reporting capital gains or foreign income.
4. Triggering the risk management framework due to suspicious claims or potential tax evasion concerns.
If you are still waiting for your refund, take the following steps
– Visit the official e-filing portal of the Income Tax Department to check your refund status.
– Monitor your registered email for any notices or correspondence about data inconsistencies.
– To correct bank account errors, update your details on the portal and request a refund reissue, which typically takes 7 to 10 days for processing.
Reasons for refund failure?
Refund delays are often caused by minor and technical errors that we overlook when filling out forms. The most common mistake is the lack of bank account pre-validation. According to the Income Tax Department’s new rules, refunds are now only sent to bank accounts that are pre-verified on the e-filing portal. Furthermore, if there’s even a slight mismatch between the spelling of the name on your PAN card and your bank account, the department will not transfer the funds for security reasons. Bank mergers often change IFSC codes, and taxpayers often enter the old code, causing the transaction to fail. Similarly, if you’ve provided information about an account that was recently closed, your refund will not be credited to you.
Easy way to raise refund re-issue request
If you have received a refund failure from the Income Tax Department, you must submit a refund reissue request on the department’s official portal. To do this, first visit the Income Tax Department’s official e-filing portal and log in with your credentials. After logging in, you will see a “Services” menu at the top of the home page. Within this menu, click on the “Refund Reissue” option. Clicking this option will open a new page, where you will select the “Create Refund Reissue Request” button. Your screen will then display a list of all assessment years for which refunds have failed due to a technical issue.