Taxpayers in India are experiencing slow refunds owing to mismatched figures, incorrect bank details, and verification delays, prompting calls for greater diligence in filing and record-keeping.
Refunds under India’s income tax system can be slowed when the figures in a return do not line up with the tax office’s own records. The department checks ITR filings against Form 26AS, the Annual Information Statement and tax deducted at source data, and any gap can trigger further scrutiny before money is released. According to Analytics Insight, discrepancies may arise in salary, bank interest, capital gains, deductions or tax credits, while LiveMint said errors in Form 16 or other reported income can also complicate processing.
Bank details are another common stumbling block. The refund account must be active, correctly entered and pre-validated, with the PAN linked to it, or the transfer can fail. Analytics Insight said problems can arise from a name mismatch, an invalid IFSC code, the wrong account number, a closed account or missing PAN linkage, and taxpayers can check the reason under “My Bank Account”. TaxGST and TaxBuddy both reported that incorrect bank particulars and unverified accounts are frequent causes of delays.
Some returns are also pushed into extra verification even when the basic data appears complete. Large refund claims, complicated transactions or inconsistencies between the return and the department’s records may lead to manual checks and a slower outcome, according to Analytics Insight. Business Standard said last-minute filing, undisclosed income, wrong forms and inaccurate deduction claims can add to the backlog, while NDTV noted that failure to e-verify a return can also hold things up.
Past tax arrears can affect the amount refunded as well. Analytics Insight reported that an outstanding demand from an earlier assessment year may be adjusted against the current refund after the department follows the required procedure. LiveMint and NDTV both said taxpayers should compare their return carefully with Form 26AS, the Annual Information Statement and Form 16, and where a deductor has reported TDS incorrectly, that deductor may need to amend its filing before the refund can move ahead.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
