Income Tax Refund Delayed? These 2 Major Reasons Could Be Why Your Money is Stuck! Here’s How to Fix It

Income Tax Refund: Thanks to advanced technology and faster processing systems, receiving your Income Tax Refund is now quicker than ever. Taxpayers can easily track the status of their refund and know when to expect the amount in their bank account. However, despite these improvements, delays can still occur for specific reasons. If you haven’t received your refund on time, it’s crucial to identify the cause and take swift action to resolve it.

Taxpayers can conveniently check their refund status by logging into the official e-filing portal of the Income Tax Department. For older refunds, the status can also be checked through the NSDL or TIN website. Regularly monitoring the portal will keep you updated on every stage of your refund process.

Major Reasons for Income Tax Refund Delays

While there could be several reasons for a delay, two issues are most commonly responsible for holding up your refund.

1. Outstanding Tax Demand

Often, the Income Tax Department may adjust your current refund amount against a pending tax liability from a previous assessment year. This means your refund is used to clear old dues.

• How to Check: To verify this, you must first log in to the e-filing portal. Navigate to the ‘Pending Actions’ section and click on ‘Response to Outstanding Demand’.
• What to Do: Here, you will see a list of any outstanding demands against your PAN. If you agree with the demand, you can use the ‘Pay Now’ option to clear the dues. If you disagree, you can challenge it by selecting the ‘Submit Response’ option and providing your justification. Failing to address an outstanding demand promptly can indefinitely stall your refund process.

2. Invalid or Unvalidated Bank Account

Your income tax refund is credited directly to your bank account. For this to happen seamlessly, your bank account must be pre-validated on the e-filing portal. Furthermore, it is mandatory to have your PAN linked with your bank account.

• How to Check: To confirm if your account is validated, log into the portal, go to your profile, and check the ‘My Bank Account’ section.
• What to Do: If the account is not validated, use the ‘Revalidate/Add Bank Account’ option to complete the process. If your refund is stuck due to this issue, you can also raise a ‘Refund Reissue’ request. This can be done by navigating to the ‘Services’ menu and clicking on the ‘Refund Reissue’ option.

What Steps Should You Take?

While the refund process is largely automated and efficient, taxpayers must remain proactive. Regularly checking the income tax portal, promptly resolving any outstanding demands, and ensuring all submitted information is accurate are vital steps. These actions can help you avoid unnecessary delays in receiving your refund. If you encounter a complex problem, seeking advice from a tax expert is always a wise decision.