After Filing ITR, How Long Does It Take To Get A Refund And What Are The Reasons That Lead To A Delay?

According to the Income Tax Department's Refund Status User Manual, there is a deadline for receiving the refund after the tax return is filed and the e-verification procedure is finished. Many taxpayers typically receive their refunds within a month, and in many cases, they are provided just days after filing their returns, thanks to the Income Tax Department's significant progress in expediting the refund processing process.

After filing your tax return, refunds are usually processed within 4-5 weeks of e-verification if the return is error-free. CA Shefali Mundra, Tax Expert at ClearTax said, however, delays are common and often caused by:

• Incorrect or unlinked bank account details
• Mismatch between TDS, Form 26AS, AIS or the filed return
• Errors in return filing or missing documentation
• Refund claims flagged for additional scrutiny
• Processing backlog during peak filing season

"Although there are no specific deadlines for receiving refunds, the process is significantly faster nowadays. In the past, it used to take 90 days after the ITR got processed, but now if you submit your returns within the deadlines, verify them swiftly, and your bank account is linked and active, the refund can come in just a few weeks or even within a day. So the earlier you submit your return, the better," commented Sujit Bangar, Founder Taxbuddy.com.

Hence, it's very important to file all details accurately while filing an income tax return. For example, the correct bank account details are needed to get a refund on time.

Common Mistakes Causing ITR Refund Delay

As per the Refund Status User Manual issued by the Income Tax Department, once the tax return is filed and the e-verification process is completed, it ideally should take about 4 to 5 weeks for the refund to be processed and credited to the bank account. According to CA (Dr.) Suresh Surana, however, the refund may be delayed or fail due to several reasons, including:

• Errors or inconsistencies in the filed ITR that require correction, as communicated by the Income Tax Department through an official intimation.
• PAN not linked with Aadhaar, making your PAN inoperative and causing refund failure.
• E-verification process not completed
• Bank account issues, such as:
• Name mismatch between the bank account and the PAN details.
• Closure of the bank account mentioned in the ITR.

Get Your Income Tax Refund in Days! But Avoid These Costly Mistakes

The Income Tax Department has made notable strides in speeding up refund processing-many taxpayers now receive refunds within a month, and in some instances, refunds are issued just days after filing returns.

However, delays still occur when returns are flagged for stricter scrutiny, if there are mismatches between the details in the filed return and records like the AIS or Form 26AS, or due to simple errors such as incorrect bank account information.

Additionally, when assessments from previous case delays occur, remember that the law entitles taxpayers to interest on late refunds under Section 244A, providing a measure of relief in the event of prolonged waiting years of pending tax dues exist, the department may offset these against the current year's refund, resulting in some delays, says Mr. Avnish Arora, Executive Director, Direct Tax, Forvis Mazars India.

Therefore, the key is accurate filing, because while the system has become faster, any error can hold up the refund. In case delays happen, remember that the law provides taxpayers with interest on late refunds under Section 244A, providing a measure of relief in the event of prolonged waiting.

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