ITR: Possible mistakes due to which you haven't received your income tax refund

The Income Tax Department is currently in the midst of processing tax returns and issuing refunds. The deadline to file income tax return (ITR) for FY 2022-23 was July 31. The refund will either be deposited in the bank account of the taxpayer or sent via a cheque. People can check the status of their tax refund on the official e-filing portal of the department-  incometax.gov.in.

Usually, it takes about 20 to 45 days for the refund to be processed and deposited in one’s bank account. For some, the refund may be delayed as the Income Tax Department has not processed their ITR yet. In some cases, due to certain lapses on the taxpayer’s end, the money may not have been deposited. If prompt steps are not taken to address the mistake, the tax refund will not be deposited in the individual’s bank account.

Here are some errors made by taxpayers due to which their refunds might not have been processed.

Pending dues

The tax refund will not be processed if the individual has any pending dues from the previous financial years. The taxpayer will need to pay off all outstanding amounts so that the tax authorities can begin processing the refund.

Additional documents required

Income tax refund will be issued only if there is proof that the individual paid more tax than was due. If the individual has claimed certain deductions and not provided adequate proof for the same, the refund will not be processed. The tax department will send a notice to the individual requesting additional documents. Once the proof is submitted and verified, the refund will be generated.

Mismatch in TDS/TCS claim

The authorities will not process the refund if the tax deducted at source as shown in Form 26AS contains any particulars that do not match with other documents.

Wrong Bank Account

Pre-validating the bank account in which you will receive your refund is a must. If the process is not done, or if the wrong details are entered, the refund will not be issued.

If any of these reasons are present, taxpayers will have to provide additional documents, correct particulars or any other proof to verify that they are eligible for the refund. Once the process is handled, the tax department will issue the refund as soon as possible. With the government planning to reduce the refund processing time to 10 days soon, it will be easier for taxpayers to get their money.