Income Tax News: Still Waiting For Refund? A Guide to Track And Resolve Delays

Income Tax News: Up until December 31, 2023, the deadline for filing tardy returns for the current assessment year, 81.8 million income tax returns were filed for the assessment year 2023–2024. Upon e-verification or manual verification, the Income tax department sends an acceptance to the CPC Bengaluru.

Processing Time for Tax Refunds

Depending on the complexity of the filed returns, the department works quickly to process the return and refund any excess taxes paid to the taxpayers in a timeframe of one to four weeks. Refunds have not yet been received by some taxpayers, despite filing their forms well in advance of the deadline. The amount of time it takes to receive overdue tax refunds is enormous.

Let us have a look at the reasons for disproportionate delays, the resources accessible to taxpayers and the obligations of taxpayers. For your better understanding, Prabhakar K S, founder and CEO of tax consultancy firm Shree Tax Chambers, provided answers to the following queries.

Post-ITR Verification Processing

After the taxpayer electronically verifies or manually completes the ITR, the Department processes it, and if the taxpayer is found eligible for a refund, it sends an Intimation-cum-Notice to his registered email address in accordance with Section 143 (1) of the Income Tax Act, 1961, informing him that he is eligible and starting the process of crediting his pre-validated bank account.

Using their login credentials, taxpayers can access the aforementioned notification e-filing service. The refund will be withheld by the department to offset past-due tax demands; however, if it is not received within 4-5 weeks or 2-3 months, it fails and remains with the department until the taxpayer takes care of specific difficulties.

Post-Filing Responsibilities

Filing a return is not the end of a taxpayer's work. He needs to constantly review his email, mobile device, and electronic filing system to make sure he hasn't missed any departmental correspondence. Delays might have a number of causes, but the majority of them call for action on the part of taxpayers.

• Neglected to e-verify following return submission;
• Returns submitted offline or in physical form will cause a delay in the return's processing.
• Failed to provide CPC Bengaluru with a hard copy of the legally signed acknowledgement within 30 days of the return filing;
• TDS/TCS mismatch: discrepancies between Forms 16/16A and 26AS; PAN stopped working since it wasn't linked to Aadhaar;
• Name in PAN and pre-validated bank account are not the same;
• Bank account not pre-validated for reimbursement, as required by law;
• Incorrect bank account number, name, and IFSC information
• Supplying a dormant or non-operational bank account while submitting the tax return

Interest on Delayed Refunds

There isn't a penalty in and of itself, but the Department does pay interest starting on April 1 and continuing until the refund is credited, at the rate of 0.5 percent per month or 6 percent per year. If the taxpayer experiences a delay, the duration of that delay will not be taken into account for determining interest.

Online Grievance Filing

Using their login credentials, taxpayers can use the Department's e-filing system to file a grievance. They can also call their Help Desk Numbers for assistance. He can file a complaint in their "Grievances" section by choosing CPC-ITR, which primarily handles ITR-V status, Intimations or Notices under section 143(1), Refund not received, Return processing, and other issues, if the Return has not yet been processed or has been processed but the refund has not yet been issued. Similar to this, SBI's attempt to refund money was unsuccessful; the money was paid but not credited, and it was credited to the incorrect account.

Refund Denial Resolution

In the event that a taxpayer's refund is denied, they should log in to the electronic filing portal, use the "My Account" feature, select "Service Request," and then select "Refund Re-Issue" under "New Request" after entering the necessary information and e-verifying it.

CPC Help Desk Assistance

In addition to the numbers listed above, he can contact the CPC Help Desk between the hours of 8:00 am and 8:00 pm, Monday through Friday, at 1800 103 0025, 1800 419 0025, 080-4612 2000, and 080-6146 4700. Thus, a taxpayer is encouraged to always stay current on his e-filing site profile details, check departmental communications or e-mails, SMS, and ensure fast action on priority in order to avoid unwarranted delays and laborious follow-up procedures.

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