Why Your Income Tax Refund Might Be Delayed – Common Mistakes To Avoid
Income tax refunds happen when the tax you paid to the government exceeds what you are required to pay.
The Income Tax Return, or ITR, is a form that shows your gross taxable income for a certain fiscal year. Taxpayers use the form to formally disclose their income, deductions, exemptions and taxes paid. As a result, it determines your net income tax liability for a given fiscal year. By the Income Tax Act 1961, taxpayers will have to file their return by the 31st of July of the assessment year to claim the refund.
Income tax refunds happen when the tax you paid to the government exceeds what you are required to pay. The government collects taxes through TDS, which is an advance tax paid at the time of submitting returns.
In some situations, an income tax refund may be sent if the tax liability is lowered by claiming deductions, exemptions, loss set-offs, or tax credits while completing the return.
But how many days does it take to get your refund from the Income Tax Department?
The tax office begins processing refunds only after the taxpayer has e-verified the return. It usually takes 4-5 weeks to be credited to the taxpayer's account. However, according to Finance Minister Nirmala Sitharaman, the average time it takes to issue income tax refunds has been lowered to 10 days, following the introduction of automation and process improvements by the Income Tax Department.
The actual time it takes to receive a refund varies due to several factors. Refunds are sometimes processed within a few days, while others can take several weeks, depending on the case-specific factors. During rare situations, the Government can also take up to 9 nine months to process Refunds.
Wrong Bank Details: Refunds are issued by direct bank transfer. Wrong account numbers or IFSC codes might lead to failed transactions.
Failure to respond to IT department queries or emails may result in refund delays or withholding.
If the refund is not received within this time frame, the taxpayer must check for ITR anomalies and check their email for any notifications from the IT department regarding the return.
Notably, the deadline for filing Income Tax Returns (ITRs) for the assessment year 2025-26 has been extended to September 15.
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