Many taxpayers often look forward to their tax refunds for the fiscal year 2022-23 to plan investments or family vacations. However, several reasons could result in the delay of your tax refund.
One common cause of delayed tax refunds is inaccurate or incomplete information in the Income Tax Return (ITR) form. Discrepancies in banking details, residential address, or email ID can lead to processing delays. Hence, it is essential to provide accurate information during ITR filing.
Top 100 Tax and Economics books to buy
Aarti Raote, a Partner at Deloitte India, pointed out, “Delays in ITR processing could arise due to incorrect bank details provided by the taxpayer. Sometimes, the taxpayer may forget to validate the return uploaded on the portal. An unvalidated return will not be processed, so it’s crucial for taxpayers to double-check this. Tax officers might also request additional documents to support the claims in the return. Once verified and approved, the return will be processed.”
Another significant reason for delays is the failure to verify the ITR. The Income Tax Department mandates that taxpayers verify returns using an Electronic Verification Code (EVC) or an Aadhaar-based One-Time Password (OTP) after submission. Failing to verify within 120 days deems the ITR invalid, preventing the issuance of the refund.
Divakar Vijayasarathy, the Founder and CEO of DVS Advisors, noted, “Refund processing time has reduced. Out of the total refunds issued in FY 22-23, 60% were issued within 60 days of filing the return. The remaining cases vary based on circumstances.”
Important points for taxpayers:
- Filing is complete after successful verification, either e-verification or otherwise, before the refund is processed.
- Outstanding past tax demands may lead to refund adjustment after due intimation.
- Open assessments or reassessment proceedings can withhold refunds until completion.
Additionally, refund processing delays can occur due to differences between TDS credit claimed in the return and Form 26AS, data mismatches, etc.
Taxpayers are advised to regularly check emails or e-filing log-ins for departmental communications. In cases of non-receipt, they can raise grievances. To track refunds, monitor registered email IDs, and use the e-filing portal.
Conclusion
In conclusion, multiple factors may delay tax refunds for FY2022-23. Ensuring accurate ITR filing and timely verification can expedite the refund process.
