How to check the status of your income tax refund
Income Tax Refunds 2024: The deadline for filing Income Tax Return (ITR) for the financial year 2023-24 (assessment year 2024-25) has ended on 31 July 2024. Income tax returns have been filed on behalf of more than 7 million people in the country. Now, most of the taxpayers in the country are waiting for their refund. Income tax refund is generated due to access to tax deduction at source i.e. TDS or advance payment of excess tax.
Taxpayers who have paid excess taxes throughout the year can claim their refund by filing their ITR. The refund is directly deposited into the bank account specified during the filing process. This year, many taxpayers in the country have reported delays in receiving their refunds. In such a situation, many types of questions arise. Let us also tell you what is the deadline for processing the refund? What could be the possible reasons for the delay in the refund? How to check the status of your refund?
ITR refund and processing period
Once the ITR is filed, the Income Tax Department usually starts processing the refund within a few weeks. However, recent advancements in automation and data analytics have significantly sped up the process and raised expectations for faster verification of tax returns, giving most taxpayers hope of receiving their refunds faster than in previous years. While most taxpayers are expected to get their refunds immediately, on the contrary, there is a chance that the ITR refund might be delayed due to a complicated return or an error in the ITR data.
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Main reasons for delays in the refund process
Understanding the reasons behind delays in income tax refunds can help taxpayers navigate the complexities of the filing process and ensure they get their refund promptly. Let us also tell you what the main reasons for delay in income tax refunds could be.
- Additional information required: The Income Tax Department may request additional information from taxpayers, halting the refund process until the assessment is completed.
- Mismatched calculation: Based on the calculations made, the department confirms the tax liability. If any error occurs, a notice detailing the amount of payment is issued. If any discrepancy is found, the taxpayer can file an updated return under section 139(4).
- Incorrect bank account details: Taxpayers must provide correct bank account numbers during the filing process to avoid delays in the refund process.
- Bank account verification: Refunds are processed only to previously verified bank accounts.
- Delay in processing time: There may also be processing delays due to the high volume of returns filed, and taxpayers must electronically verify their returns within 30 days of filing.
- Errors in Form 26AS: If the Tax Deducted at Source (TDS) details in the Income Tax Return do not match the information provided in Form 26AS, the refund may be delayed.
How to check the status of ITR refund
First, go to the Income Tax e-filing portal http://www.Incometax.gov.in. Once there, log in with your User ID, which is usually your PAN, along with your password. If you have not registered on the portal yet, you will need to complete the registration process before proceeding.
After logging in, find the “My Account” section on the home page. From the drop-down menu, select “Refund/Claim Status.” This will take you to the relevant page to check the status of your refund.
You will be taken to a page that will provide you with the current status of your refund. Here you will get information about the assessment year for which you filed your return. After that, it will also be known how the refund will be issued. You will get the reference number of the refund application you have submitted. Also, information ranging from “refund issued” to “refund not determined” or “refund failed” will be available.
