16 Mistakes to Avoid Delay in Getting Income Tax Refunds

Delay in verification of your ITR

Your job does not end only with filing your income tax return. Verification is an important part of ITR filing. Without verifying your ITR, the income tax department will not start processing your Refund. It is mandatory to verify your return within 30 days after filing. If you fail to do so, your ITR will be considered not filed.

Start filing ITR early for faster refunds

There is no doubt that filing late can delay your refunds. If you wish to seek a faster refund, you are suggested to file your return soon after 1st April but before the deadline to avoid filing belated return.

Waiting for the deadline extension

We all came across the news for date extensions due to heavy traffic on the efiling portal in the last few days. We request you to stop being one among those waiting for a date extension and always filling in the last dates. As a result of the huge amount of filing being done at that time, your refund may be delayed.

Filing Incomplete return

Refunds can be received faster if you try to leave no incompleteness in the return at the time of filing. An incomplete return means important information is missed to report in the ITR, for example, the selection of the correct nature of services, etc.

Revising Your Return

If you have decided to revise your already filed return, just remember that it will be processed after the revision. This means that revising your return can lead to additional time in receiving your refunds.

Error in calculation of taxes or details

Computation of tax liability is not an easy thing to do. It can lead to some errors if not done with precision. Any errors made while calculating taxes can cause delayed refunds or no refunds at all. In case of wrong computation, you will either need to revise your return or reply to income tax department notices. In both cases, the process will take some time, and your refund will eventually be delayed. Why make mistakes when you can file a 100% accurate return with our online CAs? Hire an online CA here.

TDS mismatch

One of the main reasons contributing to delayed refunds is a mismatch in TDS. The TDS you mentioned while filing your taxes does not match the amount shown in Form 26AS. If Form 26AS and your filed ITR do not show the same amount, the department seeks clarification. No refunds can be issued until everything matches in the tax department records.

Wrong bank details

These days refunds are being received through ECS (electronic clearing system). This has fasten the refund process as time involved in issuing cheques and further presenting them to banks has been surpassed. But, it has on the other hand increased the problems in case you mention wrong bank credentials while filing ITR, the refund will not be credited into the bank. And you will be required to update the details with IT department.

Not verifying ITR online

The Income Tax Department has made verifying your return online very easy. However, if you are not tech-savvy and still prefer the conventional method of verifying your return by post, this won’t affect the validity of your return. But it can surely add more days to the process. To receive your refund faster, we suggest verifying your return online. This way, the time involved in posting the acknowledgment, sending and receiving the post, and its processing can be eliminated.

Wrong selection of ITR form

Selection of appropriate ITR forms while filing returns yourself is a crucial thing. Wrong selection of the ITR form can lead to delays in the processing of returns and refunds at CPC. So, just give some extra time at the time of choosing the correct ITR form to avoid hardships later. You can also file your ITR with Tax2win, an AI-powered portal that streamlines the e-filing process. It automatically selects the correct ITR form for you, extracts and pre-fills data from Form 16 and AIS, and simplifies the overall e-filing experience.

No/ delayed response to notice

Many times Income Tax Department issues notices seeking clarifications. No response or delayed response to any notice received from the income tax department can further add more time in receiving your refunds. Connect now if you need expert assistance replying to Income Tax Notices.

Making false claims

If you mention anything that you know to be untrue can lead to a delay in your refunds, like claiming higher deductions, disclosing lower income, etc. While Filing ITR one must pay extra attention that only legitimate and true claims are being made at the time of filing. Tax planning should not be construed as tax evasion. This act will lead to unnecessary litigation leading to delay even in your legitimate refunds.

Delay in submitting additional documents required by IT department

The department, while finalizing your return, can ask for additional documents as it may deem fit. Non-submission or delay in submission of such documents will further delay the processing of your refunds.

Incorrect tax deposited details

On the computation of taxes, you found that tax was payable. You duly deposited the tax payable but made a mistake while disclosing it in your yearly income tax return. Such mistakes will take unnecessary time in corrections and confirmations from the department. This will again result in increased time in issuing your refund by the tax authorities.

Refund adjusted against previous year demand

Filing your income tax return can result in either a refund or an outstanding tax demand. If you're due a refund but also owe taxes from a previous year, the Income Tax Department can use your current refund to settle the old balance. They'll send you a notice beforehand, giving you 30 days to respond. You can accept the adjustment, contest it if you think it's wrong, or clarify if you've already paid the past-due amount. If you don't respond within the timeframe, it will further delay the refund process.

Tax tip : If you wish to get increased refund, file your return within the due date.The return filed within due date earns more interest but if you file your return after due date, interest will be calculated from date of filing of ITR only.

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If you need assistance with e-filing your Income Tax Return, our online CAs are here to help. They are experts in 100% accurate ITR filing and maximizing your refund. Book an eCA now!