Tax Refund: Tax refunds can be legally delayed for up to nine months. Know why refunds get stuck and what steps taxpayers should take in such a situation.
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Tax Refund: The deadline for filing Income Tax Return (ITR) is 15 September. The government had already extended the deadline of 31 July to 15 September. According to experts, there is not much chance of it being extended now. However, many taxpayers have already filed returns and their concern is about the refund.
Tax refund takes up to nine months
According to tax experts, most refunds are received within 4–6 weeks, but the Income Tax Department has a legal time of nine months. This time is counted from the end of the financial year. In how many days you will get the refund depends largely on the complexity of the return and the mistakes in it.
Which returns are processed quickly?
Experts say that ITR-1 is usually processed quickly. On the other hand, complex returns like ITR-2, ITR-3 and ITR-4 take more time to process. The speed of processing has improved in recent years, but delays are still seen in cases related to business income.
TDS mismatch becomes a big problem
The most common reason for delay in refund is TDS mismatch. Many times the TDS shown in Form 26AS and the information given in ITR do not match. In such a situation, the refund is received late and taxpayers may also get a notice from the Income Tax Department.
- If there is any mistake in the ITR form, the refund process slows down.
- When there is a mismatch between TDS details and the information given in ITR, the refund may get stuck.
- Taxpayers whose income is from business or other complex sources get their refund late.
- Filing too many returns at the last moment increases the pressure on the system and the refund is delayed.
- In many cases, the tax department has to do additional investigation, which delays the refund.
What happens under Section 143(1)?
The Income Tax Department examines the returns under Section 143(1) through the Centralized Processing Center (CPC). It verifies the calculation errors, tax calculation and accuracy of tax payment. If you get an intimation related to refund, then you have to login to the portal and file a rectification.
What to do if there is a delay in getting the refund?
If your income tax refund has not been received on time, then first of all go to the income tax portal and check the status of your return. If ‘processing’ is shown there, then you will have to wait.
But if there is any mistake or mismatch, then read the intimation received under Section 143(1) carefully and file the correction i.e. rectification. If needed, you can file a grievance online or can also contact the helpline.
