How to Keep Track of Your ITR Refund

ITR filling is one of the most challenging tasks for most individuals. From which documents to arrange for filing, which forms to fill, to finally going through the process of filing your ITR, tracking it - the entire procedure can be tedious and challenging for many. 

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But once this challenging part is dealt with, then comes the waiting period - where you understand the amount of money you can expect as returns for the financial year.

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This refund can be a couple of thousands for you or even more than a lakh, but irrespective of the amount, sometimes the excitement to receive the returns is far more than the amount you're expecting to be credited! 

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The only thing that makes waiting worse is seeing your colleagues or friends receive their ITR refund before you. And, you might wonder - I filed my taxes pretty early; why am I on the waiting list? Well, it turns out that there's more than one reason your refund is taking its own sweet time to hit your account. 

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Let's take a look at some of the most obvious ones. 

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Reasons Why Your Refund May Get Delayed

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The income tax department has automated its tax filing and verification processes in the last few years. As a result, the refund process has become faster and more efficient.

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‍Income tax refund typically takes 20-45 days after the ITR is processed, assuming you filed your income tax return and verified it on time. But, nowadays, owing to the automated process, those eligible for tax refund receive it in their bank accounts within seven days.

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But, recently, in AY2022-23 and FY 2021-22, many people have been raising complaints of delayed refunds. There could be a variety of factors that cause a delay in receiving an income tax refund. Here are some of them:

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• Incorrect input: Many human-made mistakes can be found when filing taxes online. As a result, many tax returns get rejected automatically. This happens if you owe money to the IRS. In this scenario, review your documentation, recompute your tax due, and refund.

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• Bank account ineligible: The income tax department's systems are often updated. Check to see if your bank account is transferable. If your tax refund has not been credited to your bank account, file a complaint with the income tax portal. In some situations, the income tax department may recommend that you file a refund reissue request.

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• Delay in processing requests: Sometimes, ITR processing takes time. If the department manually processes your income tax files, it may take multiple months to get a refund.

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• You have not e-verified your filed returns: Only filing returns is not the end of the return filing process. You must verify it to be considered for processing. If you filed your income tax return but did not get your refund within a reasonable period, first check to see if you've verified your form online or offline. 

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If your ITR V is validated, you can contact the department between Monday and Friday at 1800 103 0025 (or) 1800 419 0025 (or) 080-61464700. You can also file your complaint using the e-filing portal.

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How to Track Your Income Tax Refund

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There are two places you can go online to track your refund:

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(a) the income tax portal

(b) the NSDL website 

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H3: Through Income Tax E-filing Portal

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This is the primary portal that is used for filing. You can also use this to check the status of your refund at any time. You can also claim your refund through the following details.

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• Visit Income Tax Website, and enter your PAN or Aadhaar number as your user ID and password to access your income tax filing account. The 'e-file' button can be accessed after logging in.

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• Select "Income Tax Returns" from the e-file menu to view previously filed tax documents. Verify the most recent tax return.

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• To view the specifics of your latest records, your ITR for FY 2021-22, click on the "View Details" button. When you choose it, it will reveal your ITR filing and processing status date-wise.

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• If you owe an income tax refund for the current fiscal year, you'll be able to see when you may expect to receive it, how much refund you are eligible for, your payment method, and your current status.

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Using NSDL Website

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Alternatively, taxpayers can check their ITR refund status 10 days after filing from the National Securities Depository Limited's (NSDL) e-governance website. Here's how you can do it.

• Visit the NSDL website
• Enter your PAN
• Select the relevant Assessment Year (AY 2022–2023)
• Enter the Captcha code.
• Click on the 'Submit' button. Your ITR refund status will appear automatically on the screen.

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Conclusion

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After filling out your income tax return, if you are eligible for a refund that you might have paid in excess, it will automatically calculate and appear on the portal. Income tax refunds per the April 15, 2022 cutoff should have been paid out by now.

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You can also claim for individual tax returns, which can be audited until October 31, 2022. People who have filed their ITRs for the AY 2022–23 and whose refunds do not require auditing will also be paid out.

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Remember, the refund processing time could get longer if the IRS determines your return needs additional investigation. The IRS states that you may have to wait up to four months for a refund if your tax return requires further processing.

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Suppose any business owner fails to report any losses (whether speculative, short-term, or long-term capital) on their tax return for a given fiscal year. In that case, they will not be able to deduct those losses from their future taxable income. If the assessee does not submit the first return, he will not be able to offer a corrected return, no matter how urgent the situation may be. 

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Failure to file tax returns on time carries a fine of ₹5,000 under the Income Tax Act. Filing a tax return is not mandatory, but not doing so can have serious consequences, especially if a revised return needs to be filed later or you are planning to visit foreign countries for business, study, or pleasure.