Minor mistakes while filing ITR can lead to delays in tax refunds. Taxpayers must ensure their bank account details are updated and validated correctly, and complete the e-verification of their return on time. These three steps can help receive refunds quickly and securely.
ITR Filing: Taxpayers need to be cautious to receive refunds on time when filing Income Tax Returns (ITR) for 2025. Firstly, bank account details on the e-filing portal must be correct and validated. Additionally, it is essential to immediately e-verify the return through Aadhaar OTP, net banking, demat, or bank account. Refunds can be delayed due to incorrect or incomplete information, return scrutiny, outstanding past taxes, or discrepancies in records. Correct filing, validation, and e-verification can avoid weeks of unnecessary delays.
Correct Bank Account Details are Essential
The most crucial aspect is that bank account information must be updated correctly on the portal to receive refunds. If the account is incorrect or not validated, the refund will not be processed. To update bank details, taxpayers need to log in to the Income Tax e-filing portal.
- After logging in, go to 'Profile' and select the 'My Bank Account' option.
- Next, click on 'Add Bank Account' and enter the account number, IFSC code, bank name, and account type.
- After filling in the details, validate it for refunds. Refunds are only processed to validated accounts.
Users can also track the status of their refund on the portal. This process ensures that there are no errors in the bank details.
E-Verification is Mandatory
E-verification is essential after filing the return. If the return is not e-verified, it is considered incomplete, and the refund will not be issued. E-verification can be done through several methods. It can be done instantly via Aadhaar OTP, net banking, demat account, or bank account.
Experts state that many taxpayers make the mistake of not e-verifying after filing. This stops the refund and causes delays.
Common Reasons for Refund Delays
According to Avnish Arora, Executive Director of Direct Tax at Forvis Mazars India, refunds are now processed faster than before. Taxpayers often receive refunds within a few days or weeks. However, there are some key reasons for delays:
- Incorrect or unvalidated bank account details.
- Discrepancies between the filed return and AIS or Form 26AS.
- The return coming under scrutiny.
- Prior tax dues or adjustments from previous years.
Arora adds that if there is a delay in the refund, taxpayers are also entitled to interest under Section 244A of the Income Tax Act. However, the most important thing is to file the return correctly.
Three Essential Steps to Receive Refunds on Time
- File the return accurately.
- Validate the bank account correctly.
- Complete e-verification on time.
By adopting these three steps, taxpayers can avoid unnecessary delays.
Precautions During Filing
Taxpayers should file their returns after comparing the figures in Form 26AS and their bank statements. This will prevent issues arising from data discrepancies. Additionally, account numbers and IFSC codes should be entered correctly on the portal.
During e-verification, enter the OTP for Aadhaar, net banking, or demat account correctly. Sometimes, entering the wrong OTP can lead to the return being considered incomplete.
