The ITR must be electronically verified through Aadhar number OTP, EVC generated through bank account or physically verified by posting the signed ITR-V (acknowledgement) to Centralised Processing Centre (CPC) within 120 days of filing the return.
By Suresh Chaudhari
A case for income tax refund arises when a taxpayer pays higher tax through advance tax, self-assessment tax or tax deducted at source, than his total tax liability. The taxpayer can claim the income tax refund by filing the income tax returns (ITR) form. The ITR must be electronically verified through Aadhar number OTP, EVC generated through bank account or physically verified by posting the signed ITR-V (acknowledgement) to Centralised Processing Centre (CPC) within 120 days of filing the return.
A taxpayer must check the status of the income tax refund to get an idea about when he will get it. The taxpayer must ensure that he has not made any mistake while filing the ITR form.
Here’s a step-by-step guide to check the status of your income tax refund and the reasons for the delay.
Income tax department’s e-filing portal
Using your Permanent Account Number (PAN) as your user ID and password under the ‘registered user’ section, you can log into your account on the e-filing portal (www.incometaxindiaefiling.gov.in).
Once logged in, go to the ‘View e-Filed Returns/Forms’ section. Select income tax returns and the relevant assessment year.
A new page ‘My Return’ will open and show the status of your filed return such as ITR filed, verified, ITR processing, issue of refund or status of refund. Under the ‘status’ menu, you can check the mode of payment, refund amount, date of clearance and so on.
National Securities Depository Ltd (NSDL) website
Alternatively, you can check the refund status on NSDL’s website (https://tin.tin.nsdl.com/oltas refundstatuslogin.html). Enter your PAN and select the relevant assessment year to get details.
Delay in receiving the refund
There may be a couple of reasons for the delay in receiving the tax refund. The income tax department, between April 8 and July 11, issued refunds worth Rs 24,603 crore to 19.79 lakh taxpayers, it stated in a notification on July 17. Due to the Covid-19-related financial crisis, the department has quickened the refund issuance process to provide liquidity to taxpayers. But many of you may be still waiting for your refund.
Around a month’s time after the processing of ITR, tax refunds are generally issued. “Normally, refunds are processed within 20 to 45 days from the completion of processing of ITR by the Centralised Processing Centre. The taxpayer eligible for a refund claim up to r 5 lakh gets direct bank credit within five to seven business days from the issuance of a refund”.
If you have filed your income tax return within a specific period of time and are still waiting for your tax refund, here are the reasons for the delay.
Clarification or query
The tax department raises any clarification or query regarding income tax return filing. This may be one of the cases for the delay. “Refunds are usually withheld by the department on account of ongoing assessments for the relevant assessment year or on account of a mismatch in the ITR filed and the details available with the department”.
If you have received a query from the tax department on your mail, then respond to it quickly. Simple mistakes such as writing incorrect bank account details in the ITR form could also be the reason for the delay in refund. So, if you have mentioned an incorrect account number in the ITR form then, you can change it online itself.
The author is a chartered accountant. Source: Tax Guru