Common Reasons Why Your Income Tax Refund Is Delayed, And How To Avoid It

Many taxpayers have taken to social media to express frustration over delayed income tax refunds. Despite the timely filing of Income Tax Returns (ITRs) by millions each year, several individuals still face delays in receiving their refunds, sometimes even months after filing.

According to tax experts and department guidelines, such delays are not always due to slow processing. In many cases, small errors and overlooked compliance steps are the actual culprits.

Here are some common reasons why income tax refunds get delayed:

1. Mismatch in Data: If there are discrepancies between the details in your ITR, Form 26AS, or Annual Information Statement (AIS), the refund process may get stalled. Errors in the bank account number or IFSC code, or using a closed account, can also cause delays.

2. Failure to E-Verify: E-verification is mandatory within 30 days of filing the return. If this step is missed, the ITR is considered incomplete, and the refund will not be processed.

3. Bank Account Not Pre-Validated: The bank account provided must be pre-validated on the income tax portal. Any mismatch in name, PAN, date of birth, IFSC, or account number can result in refund failure.

4. Pending Tax Dues: If there are outstanding taxes from previous years, the department may adjust the current refund amount against those dues, leading to a reduced or no refund.

5. Return Under Scrutiny: Some ITRs are selected for detailed scrutiny or verification. In such cases, the refund is issued only after the completion of the process.

6. PAN-Aadhaar Linking Issues: If PAN is not linked with Aadhaar, or if the name and other personal details don't match between the ITR, bank account, and Aadhaar, the refund may be blocked. Refunds are not issued against inoperative PANs.

7. Last-Minute Filing: A large number of people file their returns close to the deadline, which increases the load on the portal and slows down processing.

8. Offline Return Filing: Returns filed through physical forms take longer to process due to manual verification, resulting in delayed refunds.

What Taxpayers Should Do To Ensure Faster Refunds:

• File returns early and e-verifies them immediately.
• Ensure accurate and updated bank account details.
• Pre-validate the bank account on the portal.
• Regularly check refund status and respond to any notices.
• If the refund has failed, request a reissue through the portal.

In most cases, delays in tax refunds are avoidable with proper documentation and timely compliance. Keeping details accurate and completing all steps as per guidelines can significantly reduce the waiting period for refunds.