5 Mistakes Delaying your Income Tax Refund

5 Mistakes delaying your Income Tax Refund


When you are e-filing income tax return, make sure to watch out for common mistakes to avoid getting delayed or denial of income tax refund.

Common mistakes an income tax payee could do to avoid delay in refund of Income tax:

Non e-filing of income tax return

Taxpayers must note that their refund will not come directly without filing income tax return. The income tax department (ITD) has made it mandatory since June 2015 to e-file income tax return (ITR) for people who are looking for the income tax refund. So, please keep in mind that you need to file return online for any income tax refund, you may have.

Choosing the incorrect income tax return form

It is suggested to wisely choose the correct income tax return form to file income tax return as choosing the incorrect return form could cause non-processing of income tax return by CPC. This non-process of income tax return could result in delay in income tax refund status (if any).

Mismatch of Taxes paid in Form 16 with Form 26AS

In most of the cases, refund is delayed or even denied when their TDS paid details mentioned in Form 16 do not match with the Tax Credit statement i.e. Form 26AS. The ITD consider Form 26AS as final. Therefore, if the tax credit is incorrect in Form 26AS, this would result in taxpayer not getting her/his refund or sometimes get a tax liability notice from the ITD.

Mismatch in TDS paid in Form 16 with Form 26AS could be due to non-deposit of TDS deducted by the government. Your employer or bank which deducted the TDS might have entered incorrect PAN (permanent account number) details while depositing the TDS to Government. Make sure there is no differences arising when comparing details of Form 16 with Form 26AS. Make sure to enter correct TAN (Tax Deduction and Collection Account Number) of deductor and TDS deducted in your income tax return. If PAN is not mentioned then the TDS is deducted at a higher rate of 20 per cent resulting in tax credit mismatch.

Providing incorrect bank account details

Taxpayers providing wrong bank account details while filling their income tax return will not be able to get their refund (if any). Make sure you provide correct bank account details such as bank account no, IFSC code, MICR code, etc. so that income tax refund could arrive on time. Income tax refund via cheque is now outdated and not applies today. File Income tax refund and it would be directly credited into your bank account.

Not E-verifying ITR-V or not sending it to CPC Bangalore

One main reason for delay in Income tax return is not E-verifying ITR-V or not sending it to CPC Bangalore. When you verify ITR electronically, you get a one time password (OTP) on the mobile number associated with your Aadhar number. Then you need to authenticate Aadhar number by entering the one time password at official website of the ITD. You can also e-verify Income tax return via Bank ATM or through mobile and e-mail verification or via net banking. If you e-verify your income tax return, there is no need to send ITR-V to CPC Bangalore then.

If you are not able to e-verify return, you need to send the completely filled ITR-V form duly signed to CPC, Bangalore within 120 days of e-filing income tax return via ordinary post or speed post failing, your e-filed ITR will not be processed resulting in no refunds(if any).

So, these were the 5 Mistakes that delay your Income Tax Refund.