While filing your tax returns, the thing every taxpayer looks forward to is the income tax refund due to additional tax deductions. But receiving your precious refund can be delayed due to several reasons. Some of the causes of late compensation can be rectified so that it doesn’t happen again. So, here are 7 reasons why you might be experiencing a delay in receiving your income tax refund.
It could happen that you have recently moved to a new place and you forget to update it with the Income Tax Department. In this case, your tax refund would be delayed if the address has been filled incorrectly or if it has changed.
Change in Bank Account Number
Just like your address, you may also forget to update your new bank account number. This is the most common reason why taxpayers experience a delay in receiving a tax refund. Hence, it is of utmost importance to have your account number updated if you ever close a bank account or stop using it.
Manual Filing of Taxes
If you prefer filing your taxes manually, then it would take some time for you to receive the refund when compared to others who filed it online. As the acknowledgement receipt for the verification is sent to Bangalore, you can experience a delay. Which is why it is advised to file taxes online for taxpayers with an income above INR 5 lakh.
Missing Certain Deductions
You always have to correctly fill all the income tax deductions and claim them while filing your income tax refund (ITR). But sometimes you may miss filing certain investments under Section 80C, Section 80D, etc. leading to a mismatch of taxes. Due to this your refund can be delayed.
Filing Taxes Late
There is no shame in admitting that you can forget to file your taxes or delay filing it. Also, if you have filed your ITR on the last day, you might receive your income tax refund a bit later. Due to numerous tax filings at the end of March, the Income Tax Department might take some extra time to process your request.
Not Opting for Online Verification
Many taxpayers now prefer online verification as it is quick and efficient. But if you still choose to send a copy of ITR-V manually for verification, processing your request of refund may be delayed. To avoid this, you can choose the Electronic Verification Code (EVC) for verifying your Income Tax Returns online.
Getting Caught in Tax Fraud
It may happen that you get stuck in a tax fraud due to identity theft. This can lead to further enquiry and a delay in the processing of your refund.
Requirement of Additional Details
After you have filed the request for a refund, the Income Tax Department might require some additional documents and details to verify the refund claim. This back and forth can cause some delay to your refund processing.