Finance Buddy

More than 7.6 crore income-tax returns (ITRs) had been filed by September 25. According to the I-T department website, of these, 6.98 crore returns have been verified and 5.35 crore processed, leaving nearly 1.63 crore returns pending, which means refunds in these cases are yet to be issued. For many taxpayers, especially those expecting big refunds, the delay can feel long. What causes the delay? What are checks involved and what should taxpayers do if they don’t get refund in time? According to Sujit Bangar, founder, Taxbuddy.com, many people assume refunds would be credited immediately but that’s not how the law works. “There is actually no delay in processing refunds, whether large or small. The income-tax department follows the timelines prescribed under Section 143(1) of the income-tax act, which allows up to nine months from the end of the financial year in which the return is filed to process it. Many taxpayers are not aware of this provision and expect refunds immediatel...

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 significantl...