This comes under Section 143(1) of the Income-Tax Act, 1961, according to an ET report. For FY 2023-24, the income tax return should have been filed by the deadline of July 31, 2024.
After processing the income tax refunds, the State Bank of India directly deposits the refund in the account provided by the taxpayer at the time of filing the ITR. Which is why it is important to verify the bank account number and IFS code provided by the taxpayer. Along with this, it is also crucial to confirm the bank account on the new income tax e-filing portal and link the PAN with the bank account.
How long does it take to get an Income Tax Refund?
The Income Tax Department typically needs four to five weeks to complete the refund processing. Make sure you validate the tax return online for the refund to be processed. In case you don’t receive your tax refund in that time frame, keep an eye for any correspondence you may have received from the income tax department to see if you are eligible for a refund. To monitor your tax refund status, visit the e-filing page.
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How to track ITR tax-refund status ?
Taxpayers can track their refund status on:
- The new income tax portal
- The
NSDL website
How to check the status of your ITR refund on the e-filing portal?
You can easily track your refund status on the e-filing portal by following these steps:
Step 1: Go to www.incometax.gov.in and sign in with your password and PAN/Aadhaar number as user IDs.
Step 2: Select the ‘e-file’ option after logging in. Choose “Income tax returns” under the “e-file” option, and then click “View Filed returns.”
Step 3: The most recent ITR for FY 2023–2024 will be for AY 2024–2025. Choose the ‘View Details’ menu item.
Once chosen, the filed refund status will be displayed. The date of tax refund issuance, the amount reimbursed, and the date of clearance for any outstanding refunds for this AY will also be displayed.
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Understanding Tax refund status message
Status 1: When refund is issued
After processing your income tax return, your account is credited with a refund.
Status 2: When refund is partially adjusted
The department may deduct the amount of the current year’s refund from any unpaid demands from prior years. They will notify you of the adjustment by a notification sent to you under section 245 prior to doing so, though.
To indicate whether you concur with the department’s decision, you must reply to the notice. In the event that a fast response is not received, the department will process the return by balancing the demand.
Status 3: After a complete refund is adjusted
In case there is any outstanding amount from previous years, the department will deduct that amount from your current year’s refund. However, before making this adjustment, they will issue a notice under section 245, informing you about the offset of your refund against the outstanding amount from previous years.
Status 4: When refund is failed
The I-T department has approved the refund; however, payment was withheld since the bank details were not prevalidated.
Reasons for tax refund failure
Numerous factors might lead to a credit or refund failure.
- If your PAN is inactive, your refund will be unsuccessful, and you will receive a warning message prompting you to link your PAN with your Aadhaar.
- Inaccurate Bank Information (Mismatching names, account numbers, MICR codes, IFSC codes, etc.)
- KYC for account holders is waiting.
- The account information provided does not pertain to a current or savings bank account.
- The account description is not accurate, whether the account you listed in your ITR has been closed.
- In case the bank account is not pre-validated, mandatorily pre-validate your bank account.