The income tax (I-T) return filing season got over more than two months ago, and most taxpayers have received their income tax refunds where they were due. Typically, the Income Tax (I-T) Department takes anywhere between four and five weeks to issue the refund, which means most taxpayers, if not all, have already received their refunds.
Notably, CBDT Chairman Ravi Agrawal said on Monday that the I-T Department is conducting an analysis of wrongful deductions claimed in certain cases. And this is why income tax returns are getting delayed this time around. He also said that the department is in the process of analysing some refund claims that were identified as high-value or were red-flagged by the system due to certain deductions.
Most of the taxpayers whose refunds are due are greater than ₹50,000.
“Almost half of my clients whose refunds are greater than ₹50,000 have yet not received their refunds. Most others have already received this,” says CA Chirag Chauhan, a Mumbai-based chartered accountant and founder of CA Chauhan & Company.
Frequently Asked Questions (FAQs):
Will you get interest on refund of income tax?
Yes, interest on delay in refund is given at the rate of 6% per annum. This interest is calculated from 1 April onwards till the date of refund.
“Interest @ 0.5% per month is applicable on late payment of income tax refund as per section 244A of Income Tax Act. Interest earned from Government on late payment on refund is considered as income taxable under Income Tax,” says CA Pratibha Goyal, partner, PD Gupta & Company.
How can you track the I-T refund?
These are some of the steps to follow in order to track the I-T refund:
>> Visit the e-filing portal homepage
>> You need to enter your user ID and password
>> Now you can go to the e-file tab. You can file income tax returns and view filed returns.
>> Here, you will be able to check the entire life cycle of filed ITR. This includes whether the refund has been fully issued, partially adjusted or whether the refund failed.
What could be the reason for the delay in the I-T refund?
These are some of the common reasons for delay in issuing income tax refund:
1. Bank account is not pre-validated. It is mandatory to pre-validate your bank account.
2. The name given in the bank account does not match with PAN card details.
3. Your IFSC code is invalid.
4. If the bank account which you mentioned in your tax return has been closed.
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