10 Reasons Why You Have Not Received Your Income Tax Refund

10 Reasons Why You Have Not Received Your Income Tax Refund

Widely News   October 09, 2019

10 Reasons Why You Have Not Received Your Income Tax Refund

Every taxpayer in India awaits the time when he/she gets the tax refund. The government of India proceeds the refunds after you have filed the tax returns. As per the IRS (Indian Revenue Service) norms, it generally takes about 21 working days to issue the refund after it is processed.

If you do not receive the refunds beyond the stipulated time, the delay could be because of various reasons. Before you hit the panic button, it advisable that you check your income tax refund status online. You can also call the check the status of your refund by calling the IRS hotline. Typically, the delay in the tax refund happens because of the following reasons:

1. Incorrect information

While filing your returns if you have committed any mistake or if the IRS finds a numerical error, it can significantly slow down the refund process. When an error is detected, the return is earmarked for review, which means that the IRS employee will personally go through the file and identify the mistake. This can extend the refund process by a few days or weeks.

2. Victim of tax fraud

While you check income tax refund status online, check if you have become a victim of tax fraud; your tax refund might be delayed because of identity theft. If someone else uses your social security number or if the tax prepare alters the direct deposit information, you can become the victim of a fraud and getting refund will be delayed until the situation is resolved.

3. Form 8379

If you have filed a joint tax return with your spouse and if all or a part of the tax refund was applied the spousal support debts, your own refund can be delayed. In such a case, you need to fill Form 8379 for injured spouse allocation. This process usually takes about 60 to 90 days to process.

4. Spousal demise

A common income tax refund enquiry is related to the death of a spouse. If your spouse was due for returns, but if they passed away before filing the tax refund, you would need to submit IRS Form 1310 (Statement of a Person Claiming Refund Due to a Deceased Taxpayer) to avoid delay in your refund.

5. Communication address not update

This is another common reason why several people experience a delay in receiving their tax refund. If the communication address provided is wrong, you need to update the same on the income tax website before you claim the refund back.

6. False Bank Account Information

Today, most people prefer getting their tax refund deposited directly into their bank account than getting the paper cheques as it takes longer to process the refunds. However, to ensure that you get online income tax refund without delay, you must enter the bank information correctly. Even a simple mistake like spelling error in the name or entering incorrect bank account number can delay the refund by a few weeks or even months.

7. The IT department needs additional information

If the IT department while assessing your tax refund claim finds that your claim for the refund is questionable, then they might request you to provide supporting documents to support the claim. In such cases, the refund on tax returns will be delayed until you provide the necessary documents.

8. Defective returns filed

Your income tax refund process can be delayed if the IT department treats your income tax returns file as a defective return. In case of delay of the tax refund, you can check income tax refund status online on the income tax website.

9. Amendments made to the returns file

In some cases, you may want to make changes in the tax returns after it is filed. The amendment may be necessary because you realised that made a spelling error or you have missed out on claiming a deduction. In such cases, the processing time can be extended by 12 to 16 weeks before the refund is initiated.

10. Refund adjusted with outstanding demand of the previous year

If your online income tax refund status shows, refund claim rejected it could because the refund tax refund for the current year would have been adjusted with the outstanding demand of the previous years.

So, now that you know the various reasons why tax refunds could be delayed, check your status online and take appropriate measures to claim the refund.

how to track income tax refund

How to track income tax refund status and get refund on time Income Tax Refund 2019

How to track income tax refund status and get refund on time Income Tax Refund 2019

Widely News   October 01, 2019

How to track income tax refund status and get refund on time Income Tax Refund 2019

A taxpayer is eligible to receive an income tax refund when excess taxes have been paid by him either through tax deduction on payments made to him or direct tax payments as advance or self assessment tax.

A taxpayer is eligible to receive an income tax refund when excess taxes have been paid by him either through tax deduction on payments made to him or direct tax payments as advance or self assessment tax. A refund may arise under various scenarios – lesser taxable income than earlier envisaged, additional deductions/ exemptions that may not have been projected earlier etc.

In recent times, the Income Tax Department (ITD) has implemented several measures to process refunds on an ‘auto’ mode though the CPC. The process is being streamlined and there has been focus towards further improvements to make refunds hassle-free for taxpayers. However, there could be several instances where an individual faces challenges in getting refunds.

It’s important to follow some simple steps to claim the refund of excess taxes paid:

The first step is to file income tax return for the AY and e-verify the same immediately. Once the tax return is filed and e-verified by the taxpayer, the return of income would be taken up for further processing by the ITD and an intimation would be sent intimating if the return is accepted as filed and the refund due for the year.

Tracking income tax refund status:

In case of delay in issue of refund or if the taxpayer has not received the refund claimed on the tax return within a reasonable period of time, he/she could check the status of the same by following any of the below options:

1. Taxpayer may visit https://tin.tin.nsdl.com/oltas/refundstatuslogin.html. The PAN number and the AY for which the refund is due needs to be filled and submitted to find out the refund status, or

2. Taxpayer may log in to his/her income tax account in the income tax portal and click on My accounts> Refund/Demand Status and enter the relevant AY for which refund status to be checked.

A taxpayer has to keep note of the following points while analysing the refund status:

1. Outstanding Income tax demands: The ITD, while processing the tax return, would check the details of outstanding tax demand pertaining to the taxpayer for any of the earlier years. In case of any outstanding tax demand reflecting against the taxpayer’s PAN, a communication would be sent to take necessary actions to get the tax demand nullified. If no action has been taken by the taxpayer on such tax demands, the refund due for the AY would be adjusted with the outstanding tax demands of earlier years. In order to minimise the time involved in refund processing by the ITD, it is advisable for the taxpayer to verify the outstanding tax demands for earlier years in advance and take necessary action without waiting for the communication to be received from ITD so that the refund can be issued quickly. This process is enabled by the ITD through the details made available year by year on the IT portal.

2. Pre-validation of bank account: As per the new process of refund issue, it is required for a taxpayer to pre-validate his/her bank account in his/her account in the income tax portal to get the refund amount directly credited to the designated bank account. Hence, the taxpayer has to ensure that pre-validation of bank account is completed at the time the return is filed or before the processing of the return by the CPC.

3. Transfer of return of income to Jurisdictional tax officer: Sometimes it so happens that the tax return filed for the year is transferred to the tax officer who has jurisdiction over the PAN of the taxpayer from CPC, Bengaluru for verification of claims made in the income tax return. In such cases, meeting of tax officer and follow-up on refund is required to speed up the refund issue process. It is vital to keep all details at hand to substantiate claims made in the return so that prompt action may be taken in response to queries raised by the officer.

4. Filing of grievance petition: A taxpayer can also file a Grievance Petition (GP) in his/her account on the income tax portal to seek resolution from CPC, Bengaluru or the jurisdictional tax officer (in case of transfer of return to jurisdictional tax officer) on the refund issue.

There are technical issues that are faced by taxpayers in certain cases, where the matter may need to be raised with the CPC for necessary action. For instance, in case of a foreign national who has repatriated to his home country, post validation of the bank account, a taxpayer is required to complete an online refund reissue request to receive the refund into a pre-validated India account. This process requires an e-verification either through Aadhaar OTP or Digital Signature. These options are not feasible in case of repatriated foreign nationals as they do not hold an Aadhaar card/India mobile number or DSC. Suitable solutions to address such challenges will need to be provided by the ITD.

A proactive approach by the taxpayer in filing tax returns on time and taking necessary actions, as mentioned above, would help in processing refunds on time.