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Pay 10,000/month for 10 years, Get 1,65,805/Year* for next 15 years.
ARN. No. KLI/23-24/E-BB/1201
Features
Ref. No. KLI/22-23/E-BB/999
Want to reduce the delays in income tax refunds? Go through this blog to know more about this.
Every year, taxpayers eagerly await their income tax refunds as it offers financial relief and an opportunity to achieve various financial goals. However, delays in receiving income tax refunds have become a common concern for many taxpayers.
Income tax returns are a must-file for all taxpayers. While these refunds are eagerly awaited, they can be delayed for several reasons. This blog aims to explain the causes of delayed income tax refund status and suggest ways to reduce them.
Income Tax Return (ITR) is a formal document filed by individuals, businesses, or other entities with the Income Tax Department of India to report their income and taxes paid. The requirement to file an ITR depends on the total income earned during the financial year, the type of income, and other factors. After filing the ITR, you will receive the refund if you are under the exemption limits as per the policies of the Income Tax Act.
If you want to know the ITR refund status, you can check it online through the Income Tax Department’s website.
As per the government-decided schedule, the last date for filing ITRs falls on July 31st, while late submissions can be made till December 30th of the assessment year. However, even with filing an income tax return on time, you might face some delays in the returns. There are various reasons for this; take a look at a few of them.
The processing time will be significantly delayed if errors or discrepancies exist in the filed tax return. Incorrectly entered information, missing documents, or discrepancies in reported income may lead to further scrutiny and additional time for verification.
Tax authorities implement stringent measures to prevent identity theft and fraudulent refund claims. In cases where suspicious activities are detected, refunds may be withheld pending thorough investigations, leading to delays for legitimate taxpayers.
Complex tax returns, such as those involving multiple sources of income, capital gains, foreign assets, etc., require more extensive scrutiny. As a result, these returns may take longer to process, leading to delays in receiving the refund.
Sometimes, tax returns need to be processed manually, especially when there are technical issues with the electronic filing system. Manual processing can be time-consuming and contribute to refund delays.
Income tax refund delays can be reduced by following some easy habits. Let us discuss these pointers briefly to know how we can lower the delays in tax refund processing:
Taxpayers can significantly expedite the refund process by filing their tax returns electronically. E-filing minimizes errors and allows for faster processing. Opting for direct deposit ensures that the refund is directly credited to the taxpayer’s bank account, reducing the need for manual processing and mailing checks.
To avoid delays caused by errors and incomplete information, taxpayers should take the time to review their tax returns thoroughly. Utilize tax preparation software that helps catch potential mistakes and prompts for missing information before submitting the return.
Filing an ITR early can increase the chances of receiving a refund promptly. By submitting tax returns before the deadline, taxpayers can avoid the backlog accumulating closer to the due date.
Understanding the reasons for delayed income tax refunds can help taxpayers stay patient during the refund process. While some delays are due to unavoidable circumstances, ensuring accuracy and completeness while filing tax returns can contribute to a smoother and faster refund process. If you have concerns about your refund status, feel free to contact the relevant tax authority for clarification.
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The refund process duration can vary based on factors such as the complexity of the tax return, verification requirements, and errors or discrepancies in the filed return.
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While submitting relevant documents accurately can help avoid delays, the processing time depends on the tax authority’s workload and efficiency.
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Several factors could cause a smaller refund, including changes in tax laws, deductions claimed, or outstanding tax liabilities, which may have been deducted from the refund amount.
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Tax authorities usually notify taxpayers if there are issues with their returns. It’s essential to keep track of communications from the tax department to address any concerns promptly.
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If you believe the delay is unreasonable or unjustified, you can contact the tax authority to seek clarification and understand the reason behind the delay.
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
Pay 10,000/month for 10 years, Get 1,65,805/Year* for next 15 years.
ARN. No. KLI/23-24/E-BB/1201
Features
Ref. No. KLI/22-23/E-BB/999
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
