Haven’t Received Your ITR Refund Yet? Here’s How Long It Should Take and What to Do If It’s Delayed
The deadline for filing Income Tax Returns (ITR) for the financial year 2023-24 ended on July 31, 2024, with over 7.28 crore taxpayers filing their returns within the stipulated time frame. This figure represents a 7.5% increase compared to the previous year.
As of August 23, the Income Tax Department had processed 5.34 crore of these returns. While some taxpayers received their refunds just days after filing, others are still awaiting their refunds. Currently, over 2 crore verified ITRs remain unprocessed.
In today’s financial news, we will discuss the reasons behind the delay in receiving refunds and guide you on the following aspects:
- How long does the ITR processing take?
- What to do if your refund is delayed?
How Long Does ITR Processing Take?
Financial expert Deeksha Shukla explains that the Income Tax Department typically takes 15 to 45 days to process an ITR after the date of e-verification. If offline verification is done, this timeline may be extended.
The Income Tax Return (ITR) should be processed within nine months after the end of the financial year in which it was filed. For ITRs filed for the financial year 2023-24, this means that refunds should be received by December 31, 2025, or earlier.
If the processing is taking longer than usual, it could indicate that the Income Tax Department is reviewing your return in detail. In cases of significant delays, taxpayers can lodge a complaint on the Income Tax portal.
Additionally, if the refund is not received during this period, taxpayers should regularly check their ITR status notifications and keep an eye on any email communications from the Income Tax Department regarding the refund.
Why Are ITR Refunds Delayed?
One common reason for delays in ITR refunds is the thorough verification process conducted by the Income Tax Department. During this process, several factors are closely examined, such as:
- What is your taxable income?
- How many deductions or exemptions have you claimed?
- Are these details already included in Form 16?
- Have you used the correct form for filing?
- Does the Income Tax Department need additional information related to the financial year?
- Are there any discrepancies in your tax assessment?
Refund delays can also occur if there are mismatches in the bank account number or name-related details. Additionally, if there are discrepancies between the TDS details in your return and those in Form 26AS, it can lead to delays.
Moreover, delays might happen due to backlogs at the Centralized Processing Center (CPC). Therefore, it’s advisable for taxpayers to file their returns before the deadline to help prevent such backlogs.
Taxpayers are eligible to receive interest on delayed income tax refunds. If the income tax return is filed within the specified timeframe, taxpayers are entitled to interest at a rate of 0.5% per month from April 1, 2024, until the refund date. However, this interest is only provided if the refund amount exceeds 10% of the actual tax liability.
What Should Taxpayers Do If Their Tax Refund Is Delayed?
If your income tax refund is delayed, the first step is to check the status on the Income Tax Department’s e-filing portal. This will provide you with the current status of your return processing and help you understand the reason for the delay.
How Can I Track My ITR Processing Status?
To ensure accurate tax liability calculations and to receive a refund if you have paid more tax than required, it’s important to file your ITR regularly and within the deadline.
Regularly checking the status of your income tax refund and promptly resolving any issues can save you time. Tracking and managing your tax refund online is now easier than ever. Below is a guide on how you can track your ITR processing status:
- Visit the e-Filing Portal: Go to the Income Tax Department’s e-filing portal.
- Login: Use your credentials to log in to your account.
- Check Refund Status: Navigate to the “View Returns/Forms” section and select “Income Tax Returns” to view the status of your ITR.
By following these steps, you can stay informed about the progress of your ITR processing and take necessary actions if required.
Who Needs to File an Income Tax Return and How to Check Refund Status
The government mandates that individuals earning more than ₹2.5 lakh annually must file a tax return. If your income exceeds this amount annually, you are required to file your ITR before July 31st every year. This deadline applies to those who are not subject to a tax audit.
You can easily check the status of your income tax refund online. The portal allows you to view details such as the assessment year, current status, reasons for any refund failures, and the method of payment. This ensures that you stay informed about your tax filing and refund process.
