ITR filed, refund not received yet? Here's how you can keep a track and what to do when it's late

A total of 81.8 million income tax returns have been filed for the assessment year 2023-24 up to December 31, 2023, which was the last date for filing belated returns for the current assessment year. Up on e-verifying or manual verification by sending its acknowledgement to the CPC Bengaluru, the Income-tax department in its endeavour and depending on the complexity of the filed Returns, process expeditiously and refund excess taxes paid, if any, to the taxpayers within a day to 4-5 weeks.

As mentioned, some taxpayers have yet to get their refunds despite filing returns well within the due date. There is a considerable amount of delay in getting due tax refunds. Let us have a look at the reasons for inordinate delays, the resources available to taxpayers and the responsibilities of taxpayers.

How much tax do I have to pay? Calculate now

Prabhakar K S, founder and chief executive officer of tax advisory firm Shree Tax Chambers, answered the following questions for one's better understanding.

What happens if a taxpayer whose ITR is submitted has yet to receive the refund?

Once the ITR is e-verified or manually by the taxpayer, the Department process it and sends a Intimation-cum-Notice under Section 143 (1) of the Income Tax Act, 1961, to the taxpayer’s registered e-mail id to inform him that he is eligible for a refund and initiate crediting process to his pre-validated bank account, if found eligible. A taxpayer can access the said intimation e-filing portal using login credentials. In any case, if the refund is not received within 4-5 weeks or 2-3 months, the refund fails, though the department is pushed from its side, withheld to adjust against old tax demands; the refund will be lying with the Department until the taxpayer addresses certain issues.

What should a taxpayer do?

A taxpayer’s job is not done just by filing his return. He must check his e-mails and mobile and e-filing portal for any departmental communications he might have received regularly. There could be several reasons for being delayed, but most of them require taxpayers' end’s action to address them.    

• Forgotten to e-verify after filing the return;
• Filing return offline or physical mode, which will delay processing the Return further  
• Failed to send duly signed acknowledgement’s hard copy to CPC Bengaluru within 30 days of the return filing;
• Mismatch of TDS/TCS – Differences in Form 16/16A and Form 26AS;
• PAN became inoperative due to non-linking with Aadhaar;
• Mismatch of Name in PAN and pre-validated Bank account;
• Bank Account not pre-validated for refund, which is now mandatory;
• Wrong Bank details – Name, account number, IFSC;
• Providing a non-operative/dormant bank account while filing the return;

Apart from the above, there could be a delay from the Department side

Rejection of refund request due to additional tax required to be paid by the taxpayer;

Refund request still under Process - Due to complexities, the Department may take extra time to process the return;

Return may be marked for scrutiny to ensure its accuracy and compliance;

Requirement of additional documents and information from the taxpayer;

Initiating the process of adjusting the Refund against old tax demands;

Return marked as defective return

Will the government pay any penalty?

No penalty as such, however, the Department pays an interest of 0.5 per cent p.m. or 6 per cent p.a, which is paid from April 1 till the date of the credit of the refund. However, if there is a delay from the taxpayer’s side, then the period of such delay will not be considered while calculating the interest.  

How can one raise such a grievance?

A taxpayer can raise a grievance through the Department’s e-filing portal by using login credentials and also reach out to their Help Desk Numbers.  In case the Return is not yet processed or processed but the refund has not yet been issued, he can raise an issue in their ‘Grievances’ section by selecting CPC-ITR, which predominantly deals with ITR-V status, Intimations or Notices under section 143(1), Refund not received, Return processing and among others. Similarly, SBI for Refund failed; the Refund was credited to the wrong account, and the Refund was paid but not credited.

In case of failure of refund, a taxpayer post login to the e-filing portal navigates ‘My Account’ feature, clicks the ‘Service Request’ option and chooses ‘Refund Re-Issue’ request under ‘New Request’ by providing requisite details and e-verify therein.

In addition to the above, he can reach out to the CPC Help Desk numbers at 1800 103 0025, 1800 419 0025, 080-4612 2000 and 080-6146 4700 Monday through Friday between 08.00 am- 08.00 pm. Thus, to avoid undue delays and cumbersome follow-up processes, a taxpayer is advised to keep always updated on his e-filing portal’s-profile details, check departmental communications or e-mails, SMS and ensure prompt action on priority.