ITR Refund Delayed? No Need to Worry – Expect a Bigger Payout With Interest This December
As the financial year comes to an end, thousands of taxpayers across india are still waiting for their Income Tax Refunds to be credited to their accounts. If your refund hasn’t arrived yet, there’s no need to panic. In fact, delays may lead to additional interest being credited along with your refund, making your payout larger than initially calculated.Why ITR Refunds Get Delayed1. Verification Process:o The Income Tax Department verifies the submitted ITR forms for accuracy, cross-checking income, deductions, and tax paid.2. Discrepancies in Filing:o Refunds may be delayed if there are mismatches in Form 26AS, incorrect bank details, or errors in income reporting.3. High Volume During Tax Season:o During peak filing periods, the department handles millions of returns, leading to processing delays.4. Pending Assessments:o If your ITR is selected for scrutiny or if additional clarification is required, the refund may take longer.Good News: Interest on Delayed Refunds· Under Section 244A of the Income Tax Act, the government pays interest on delayed refunds.· Rate of Interest: 0.5% per month (6% per annum) for the period between filing the return and receiving the refund.· Example: If your refund of ₹50,000 is delayed by 4 months, you may get an extra ₹1,000 as interest.How to Track Your Refund1. Income Tax e-Filing Portal:o Log in to https://www.incometax.gov.in and check Refund/Demand Status.2. NSDL or bank Portal:o You can track your refund using PAN, assessment year, and acknowledgment number.3. SMS Alerts:o Ensure your bank mobile number is linked to your PAN for real-time updates.Tips to Avoid Refund Delays· Double-check Form 26AS for tax payments and TDS credits.· Provide accurate bank account details while filing ITR.· File ITR well before the deadline to avoid last-minute delays.· Respond promptly if the Income Tax Department requests additional documents.ConclusionA delayed Income Tax refund is not necessarily a problem. Taxpayers can benefit from additional interest under Section 244A, making the eventual payout larger than expected. By tracking the status online and ensuring accurate filing, you can receive your refund smoothly and even enjoy a small bonus for the waiting period. Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.