ITR Refund Not Received? This One Mistake Could Be Costing You! Step-by-Step Guide

ITR Refund: After filing the Income Tax Return (ITR), many people eagerly wait for their refund. But it’s natural to worry if the refund doesn’t arrive on time. If you’ve had such an experience, this report is for you. The Income Tax Department has stated that to receive a refund, a very important task must be completed. And that is to verify your bank account. If you don’t do this, your due money could get stuck.

Why is Bank Account Verification Important?

According to the Income Tax Act, your refund money is directly credited to your bank account. But for this, your bank account must be linked and pre-validated on the Income Tax Department’s e-filing portal. If your account is not verified, or if the account you have linked is closed, then even if the refund is processed, the money will not reach you. As a result, your refund will be stuck.

How to Verify Your Bank Account?

You can easily verify your bank account online from home. Follow the steps below:

• Step 1: First, go to the official e-filing portal of the Income Tax Department (www.incometax.gov.in/iec/foportal/).
• Step 2: Log in with your User ID (PAN) and password.
• Step 3: After logging in, go to the ‘My Profile’ section.
• Step 4: There, click on the ‘My Bank Account’ option.
• Step 5: If you don’t have a bank account added, click on the ‘Add Bank Account’ option and provide your bank account number, IFSC code, account type (Savings or Current), etc.
• Step 6: After filling in all the information correctly, click on the ‘Validate’ option.

After this, the Income Tax Department will match the information you provided with the bank. If the validation is successful, you will receive a confirmation message on your mobile number and email ID.

How Long Does it Take to Get a Refund?

Usually, the refund money is credited to the bank account within 4 to 5 weeks of filing and e-verifying the ITR. However, sometimes the money arrives even earlier. If your refund is delayed, you can check its status by logging into the Income Tax Department’s portal.

Is Interest Paid on Delayed Refunds?

According to Section 244A of the Income Tax Act, 1961, if the Income Tax Department delays your refund, they are obliged to pay you interest on the due amount. Interest is paid at a rate of 0.5% per month (6% annually). However, if your refund amount is less than 10% of the total tax payable, this interest is not applicable. Remember, the interest received on the refund is taxable.

So, if you haven’t verified your bank account yet, don’t delay any further and complete this task today. This will ensure that your ITR refund reaches your account on time and without any hassle.