Recently, while onboarding a new client, I discovered that there were four years of unclaimed refunds on his PAN in the income tax portal due to discrepancies in bank details. When I inquired about this, the client simply nodded and mentioned he was unaware of the situation. Therefore, it is important for individuals whose TDS consistently exceeds their tax payable to monitor their income tax refunds annually.
After filing your tax return, refunds are typically processed within a maximum of 90 days. However, if you have not received your tax refund within this timeframe, the following guide will assist you in tracking your refund.
Steps to Follow Up on Your Income Tax Refund:
1. Verify Refund Status:
- Online (Income Tax Website):
- Go to the Income Tax Department website: https://www.incometax.gov.in/iec/foportal
- Log in using your PAN and password.
- Click on "View Returns/ Forms."
- Select "Income Tax Returns" and the relevant assessment year.
- Check the status of your refund.
- Online (NSDL Website for Refunds Processed Before 01/04/2023):
- Call the Income Tax Department:
- Dial the toll-free number 1800 103 4455.
- Have your PAN and assessment year ready.
2. Identify the Reason for Delay:
Common reasons for income tax refund delays include:
- Incorrect Bank Account Details: Check your ITR for any errors in your bank account number, IFSC code, or account type.
- ITR Processing Errors: There might be errors in your ITR filing.
- Outstanding Taxes or Dues: Verify if you have any unpaid taxes or dues from previous years.
- Higher Refund Claim: The tax department might be scrutinizing your return if you claimed a significantly higher refund than usual.
- System or Processing Delays: Sometimes, there might be delays due to high volumes of returns or technical issues within the Income Tax Department's systems.
3. Take Action Based on the Reason:
- Incorrect Bank Details:
- E-filing Account: If the return is not yet processed, correct the bank details in your e-filing account and request for rectification.
- Pre-validated Bank Account: If you've linked a pre-validated bank account to your PAN and the return is processed, the refund will be credited to that account. You can change this account information later.
- ITR Processing Errors:
- Rectification: If the error is minor, file a rectification request online through the Income Tax website within the allowed time limit.
- Revised Return: If the error is substantial, file a revised return before the due date.
- Outstanding Taxes or Dues: Pay any outstanding taxes or dues immediately to avoid further delays.
- Higher Refund Claim or Scrutiny:
- Respond promptly: Be prepared to provide supporting documents if the tax department requests them.
- Seek professional help: If you're unsure about the process, consult a qualified tax advisor.
4. Escalate If Necessary:
- File a Grievance: If you haven't received your refund within a reasonable timeframe and have confirmed all details are correct, file a grievance on the Income Tax Department's e-Nivaran portal: https://www.incometax.gov.in/iec/foportal
- Contact the Assessing Officer: If the grievance doesn't resolve the issue, contact the Assessing Officer assigned to your case. You can find their details on the Income Tax website.
Important Notes:
- Keep track of deadlines: There are specific deadlines for filing revised returns, rectifications, and raising grievances.
- Save all communication: Maintain records of all communication with the Income Tax Department, including emails, letters, and screenshots of online submissions.
- Seek professional help: If you're facing difficulties or complexities, don't hesitate to seek assistance from a qualified Chartered Accountant or tax advisor.
As I always emphasize, filing taxes is not a DIY (Do It Yourself) project. It requires specialized skills and expertise. If you are expecting a significant refund and it is not being credited to your account, it is advisable to seek professional assistance.
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