Electronic tax

Haven’t received your tax refund yet? Know the possible reasons and how to deal with them

The new Income Tax Portal has accelerated the processing of returns, as a result of which more than 4.5 million returns have already been processed and tax refunds, if any, are mostly released.

After the initial technical issues after the launch of the new income tax e-filing portal – due to which the deadline for filing the income tax return (ITR) for the tax year (AY) 2021 -22 has been extended to December 31, 2021 for assessees whose income has not been subject to a tax audit – approximately 6.25 million taxpayers were able to successfully file their ITRs electronically.

Most importantly, the new portal has accelerated the processing of returns, whereby over 4.5 crores of returns have already been processed and tax refunds, if any, are mostly unlocked.

So, in case you have already filed your ITR and are waiting for the tax refund, you need to know the causes of the delay and how to deal with these causes.

ITR not verified

The filing of a tax return is complete only after verification of the ITR. Verification of an ITR can be done either electronically or by sending the signed copy of the ITR-V to the Centralized Processing Center (CPC) in Bangalore.

If you have not yet verified your return, you must do so within 120 days of the return filing date to ensure that the return is processed and the tax refund is released.

For electronic verification, you can do it via Aadhaar OTP or net banking or DSC (Digital Signature Certificate) or EVC (Electronic Verification Code).

If you wish to verify the return by sending the ITR-V to CPC, Bangalore, you must send the signed copy of the ITR-V by regular post or express post early enough to ensure that it reaches the CPC before the end. 120 days from the date of filing.

If you forget to sign the ITR-V or send a photocopy of the signed ITR-V, it will be considered invalid.

Bank account not validated

It is no longer enough to add or mention your bank details in the income tax portal and in your ITR to get the refund amount credited to the bank account mentioned as the default account. You must validate the bank account to which you want the tax refund to be credited.

An account can only be validated if the mobile phone number and email address listed as primary contact information in the income tax portal matches the mobile phone number and email address listed in Bank account.

So, if there is a discrepancy between the details provided as primary details in the income tax portal and the details provided in the bank, make the necessary changes and validate your bank account.

You can update the default bank account mentioned in the ITR with the validated bank account without revising your declaration.

Arrears adjustment

In the event that certain income tax liability claims from the Department of Income Tax for past tax years remain unresolved, refunds are released only upon adjustment of arrears. Thus, if the arrears exceed the amount of the tax refund for the current AY, you will not get any refund, unless the problems are resolved to the satisfaction of the income tax department.

For this, you should regularly check the messages and emails received on the number and ID provided in ITR for notices received from the IT department, so that you can respond to the notices sent in time.

Coordinates not updated

In the absence of verification of the opinions and of response within the time allowed to respond, it will be considered that you have nothing to explain and that you accept the decision of the IT department.

It is therefore important that you provide the mobile phone number and email id that you regularly use as primary contact details in the Income Tax Portal as well as in your ITR.