Why Income Tax Refund is Delayed this Year?

Wondering

about ITR refund delay.

Income tax refunds can sometimes be delayed due to various reasons. 

What Factors Causes a Delayed Income Tax Refund?

Here's an overview of the common factors that might cause a delay in income tax refund:

• Incorrect details, such as mismatches in PAN, bank account numbers, or personal information, can lead to delays. Inconsistencies in the figures reported in the return compared to Form 16 or Form 26AS can also cause the return to be flagged for review.

• If the income tax department needs to manually verify certain details or documents, it can extend the processing time. This is often the case if there are discrepancies or if the return has been selected for detailed scrutiny.

• After filing the ITR, it must be verified either electronically or by sending a physical copy to the Centralized Processing Centre (CPC) in Bengaluru. Delays in completing this verification process can stall the refund.

• During peak filing periods, such as the end of the financial year, the department may receive a high volume of returns, which can slow down the processing speed.

• If there is a mismatch between the taxes paid (like TDS, advance tax, or self-assessment tax) and the taxes reported in the ITR, the refund process may be delayed until the issue is resolved.

• Refunds are processed electronically, and any issues with the bank account details provided (such as closed or inactive accounts) can delay the refund. Ensure that the bank account is pre-validated and linked with the PAN.

• Changes in tax policies or technical issues with the e-filing portal can also contribute to delays. The introduction of new systems or software updates might temporarily slow down the processing.

Regularly check the status of your ITR and refund on the Income Tax e-filing portal. This can provide insights into any issues that might need to be addressed. If there are any notices or queries from the Income Tax Department, respond promptly to avoid further delays.

If the delay is unexplained, contact the Income Tax Department’s helpline for assistance. This is all about

ITR refund delay.

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Worrying why income tax refund is delayed this year

. Here are some common reasons.

Why ITR Refund is Delayed this Year?

• To Present the Plans of the Department of IT, additional information is required

Action: For direct inquiries, go ahead and try to either call or send a letter to your assessing office. Fill in the blanks with the documents. 

• Taxes Evading

Action: In addition, a possibility of a wrong calculation can always occur. In case you get an intimation from the income tax department and if you find yourself with an amount of tax outstanding , it is imperative that you must act without delay. 

• The Detected Refund is more than actual

Action: The Income Tax department may book a notice in which they search for ascertaining that you have not performed the correct ITR records calculations. 

• Forgot the supporting reason

Action: You may sometimes discover the mistake after your documents go out. It is possible to amend your income tax return after the IT department receives it if you have not already done so.

• Bank Details are Changed

Action: People can take one of the alternatives such as withdrawing their money from one bank and placing it into another bank or closing one account and opening a new one. 

• The time lag in Processing (Final Solution)

Action: Income Tax Department may now take a bit of time to complete the return.

• Physical filing of Tax-Forms 

Action: Whilst filing electronic forms of your income tax return can prompt your refund to be delayed physically, file them online to get your refund right away. 

These can be the reasons why income tax refund is delayed this year

.

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