Income Tax Refund: Haven't received your income tax refund yet? These 5 reasons could be responsible..

Income Tax Refund: After filing their Income Tax Return (ITR), most taxpayers eagerly await their refund. While many receive it quickly, others face a long wait. If you have filed your return but haven't received your refund yet, there could be several reasons for the delay. Let’s look at the reasons why a refund might get held up.

1. ITR not yet processed

After a return is filed, the Income Tax Department reviews it. The refund is issued only after the ITR is processed. If the portal displays the status 'Return Under Processing,' it means the department is currently examining your return.

2. Issues with the bank account

Refunds are credited directly to the bank account. If your bank account is not pre-validated, not linked to your PAN, or contains incorrect details, the refund may get stuck. Therefore, it is advisable to check the status of your bank account on the e-filing portal.

3. Errors in the ITR

Refund delays can occur if incorrect details—such as the bank account number, IFSC, income figures, TDS information, or other data—are entered in the return. In such cases, you might need to file a 'Revised Return.'

4. Discrepancies between TDS and AIS

If the TDS details provided in your ITR do not match the data in Form 26AS or the Annual Information Statement (AIS), the Income Tax Department may conduct further scrutiny. This can prolong the time it takes to receive the refund.

5. Return selected for scrutiny

The department selects certain ITRs for scrutiny or additional verification. In such instances, the refund is issued only after the verification process is complete. If you receive a notice from the department, it is crucial to respond to it in a timely manner.

How to check refund status?

Log in to the Income Tax e-filing portal.
Go to the 'e-File' menu and click on 'Income Tax Returns.'
Select the 'View Filed Returns' option.
Select the ITR for the relevant Assessment Year. You can view the current status of your return and refund here.
If the refund has been issued, the transaction reference and payment details will also be available here.

Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.