ITR Refund Stuck? What to Do if Status is ‘Processed’ But No Money Received

ITR Refund: Many taxpayers eagerly await their income tax refund after filing their Income Tax Return (ITR). However, a common issue they face is the ITR status showing as ‘Processed’, but the refund amount is not credited to their bank account. This situation can be worrying for many. In this article, we will discuss in detail the steps to take in such a scenario and the potential reasons behind the delay.

ITR Status is ‘Processed’ But Money Hasn’t Arrived: What Should You Do?

If your ITR status shows ‘Processed’ but you haven’t received the refund, there’s no need to panic. You can resolve this issue by following a few simple steps.

Here are the steps:

• Log in to the e-Filing Portal: First, you need to log in to the official Income Tax Department’s e-filing portal (incometax.gov.in).
• Check Refund/Demand Status: After logging in, navigate to the ‘Refund/Demand Status’ section. Here, you will find detailed information about the current status of your refund.
• Verify Bank Account Details: Often, refunds get stuck due to an incorrect bank account number or IFSC code. Therefore, thoroughly verify that the bank account details you provided are correct.
• Reconcile Form 26AS and TDS: Check for any discrepancies between the TDS (Tax Deducted at Source) mentioned in your ITR and the information in your Form 26AS. Delays in refunds can often occur due to such mismatches.
• Request a Refund Reissue: If your bank details are incorrect or the refund is held up for any other reason, you can raise a ‘Refund Reissue’ request through the e-filing portal.
• Contact NSDL/Bank: If the refund status indicates that the amount has been dispatched but you haven’t received it, you should contact your bank branch or the NSDL.

Why Do Refunds Get Delayed?

There can be several reasons for a delay in receiving your tax refund. Some of the common causes include:

• Incorrect Information: Any error in your personal details or bank account information can lead to a delay in your refund.
• TDS Mismatch: If the TDS details you provided do not match the data with the Income Tax Department, the refund processing will take longer.
• Additional Scrutiny: If your refund amount is significantly high or if there are any suspicious claims in your ITR, the tax department may subject it to additional scrutiny, causing a delay.
• Technical Glitches: At times, technical issues on the e-filing portal can also lead to delays in refund processing.

This guide should help you in getting your stuck income tax refund. Remember, filing your ITR with accurate information and regularly checking the status can help you avoid such problems.