When it comes to filing your Income Tax Return (ITR), careful attention is necessary to ensure a smooth refund process.
While income tax is deducted monthly via TDS, the final tax liability is determined during ITR filing.
If your tax liability is lower than the total TDS deducted, you will be eligible for a refund. However, if your liability exceeds the TDS, you will need to pay the difference.
Top Tips to Avoid Delays in Income Tax Refunds
To prevent delays or complications in receiving your income tax refund, it is crucial to keep the following points in mind:
Complete and Accurate Information in ITR Filing
Ensure that all necessary information is accurately filled in your ITR. Failure to provide essential details may lead to processing issues and delays in refund disbursement.
This is particularly relevant for offline ITR filings, where inadvertent omissions or mistakes are more common, such as forgetting to include PAN or sign the tax form.
Verify Bank Account Details
Double-check that your bank account details are correct. Any mismatch between your bank information and PAN card, such as discrepancies in name or other personal information, can cause delays in refund processing.
Additionally, if any suspicious or incorrect information is detected by tax authorities in your return, the refund disbursement may be withheld until the issue is resolved.
Special Credit Claims and Refund Delays
Certain types of credit claims can also result in delayed refunds, as authorities meticulously verify the accuracy of these claims.
Typically, refunds for such claims may take 2-6 months for processing. However, in some cases, the refund may be issued within 15 days if no discrepancies are found.
Checking Your Refund Status
To track the status of your refund, follow these simple steps:
- Visit the e-filing portal.
- Scroll down to locate the “Know Your Refund Status” option within the instant link section.
- Click on the option and provide your PAN number, assessment year, and mobile number.
- Enter the received OTP (One-Time Password).
- Your refund status will be displayed upon entering the OTP.
By adhering to these guidelines and ensuring accurate and complete information during the ITR filing process, you can maximize the chances of receiving your income tax refund promptly.
