FY 23-24 Income Tax Refund Not Received Yet? Deadlines, Legal Provisions, and How to Track Your Refund

Introduction

Income tax refunds are a crucial financial aspect for taxpayers in India. Many individuals and businesses eagerly await their refunds after filing Income Tax Returns (ITR) for a given financial year. However, delays in processing refunds can lead to confusion and concern. This article explores the statutory timeline for income tax refunds in India, relevant sections of the Income Tax Act, reasons for delays, and steps to check and resolve refund-related issues efficiently.

Statutory Timeline for Income Tax Refunds in India

The Income Tax Department of India is required by law to process ITRs and issue refunds within nine months from the end of the financial year in which the return was filed.

As per Section 143(1) of the Income Tax Act, 1961, no intimation can be issued after nine months from the end of the financial year in which the return was filed. For instance, for the financial year (FY) 2023-24, which ended on March 31, 2024, the department should ideally process and issue refunds by December 31, 2025.

However, in most cases, refunds are issued much sooner—typically within 20 to 45 days after successful e-verification of the ITR.

Relevant Income Tax Act Provisions for Refunds

1. Processing of Income Tax Returns (Section 143(1))
   • The Income Tax Department processes the return and issues an intimation.
   • Refunds are issued only after the department completes this process.
2. Refund Claims (Section 237 & Section 239)
   • Section 237: If excess tax is paid, the taxpayer is entitled to a refund.
   • Section 239: Refund claims must be made in the prescribed form and within the prescribed period.
3. Interest on Delayed Refunds (Section 244A)
   • If the refund is delayed beyond the prescribed period, the taxpayer is entitled to interest on the delayed refund.
4. Condonation of Delay in Filing Refund Claims (Section 119(2)(b))
   • The Central Board of Direct Taxes (CBDT) can allow refund claims even after the due date if there is a valid reason.
5. E-Verification of Returns
   • The ITR must be e-verified within 30 days of filing to be considered valid.

Common Reasons for Income Tax Refund Delays

Even though the statutory timeline exists, several reasons can contribute to refund delays:

1. Incorrect Bank Details:
   • The refund is processed electronically. Incorrect bank account details, such as IFSC codes or account numbers, can lead to failed transfers.
2. Mismatch in Form 26AS or AIS:
   • Discrepancies between TDS (Tax Deducted at Source) details in Form 26AS, Annual Information Statement (AIS), and the filed ITR can delay processing.
3. Manual Scrutiny or Processing:
   • If the ITR is flagged for manual verification due to high-value transactions or tax deductions, processing may take longer.
4. Outstanding Tax Demand:
   • If there is an unresolved tax demand from previous years, refunds may be adjusted or withheld.
5. Late Filing of ITR:
   • Returns filed after the due date (usually July 31st for individuals) may take longer to process.
6. Errors in ITR Filing:
   • Any errors or omissions in the return can lead to additional processing time or rejection of the refund request.

How to Check Your Income Tax Refund Status

To check the status of your refund, follow these steps:

1. Through the Income Tax e-Filing Portal

• Visit Income Tax e-Filing Portal
• Login using your PAN, password, and OTP
• Go to ‘e-File’ → ‘Income Tax Returns’ → ‘View Filed Returns’
• Check the status of the latest filed return

2. Through NSDL’s Refund Tracking Portal

• Visit NSDL Refund Status Portal
• Enter your PAN and Assessment Year
• Click on ‘Submit’ to view the refund status

What to Do If Your Refund is Delayed?

1. Raise a Refund Reissue Request

If your refund was unsuccessful due to incorrect bank details, you need to raise a Refund Reissue Request:

• Login to the e-Filing Portal
• Click on ‘Services’ → ‘Refund Reissue Request’
• Enter the correct bank details and submit the request

2. Contact the Centralized Processing Centre (CPC)

For refund-related queries, you can contact CPC Bangalore:

• Toll-Free Numbers: 1800 103 0025 / 1800 419 0025
• Email: income_tax@cpc.incometax.gov.in

3. Submit a Grievance Online

If your refund is delayed beyond the expected time, file a grievance:

• Login to the Income Tax Portal
• Go to ‘Helpdesk’ → ‘Submit Grievance’
• Select Refund Issue and submit details

4. Contact Your Assessing Officer (AO)

If the issue persists, you may need to visit your jurisdiction’s Assessing Officer (AO) at the Income Tax Department.

Conclusion

Tax refunds are usually processed smoothly, but delays can happen due to various reasons. Understanding the statutory timelines, checking refund status, and taking proactive steps to resolve issues can help taxpayers receive their refunds on time. If you’re facing significant delays, raising a refund reissue request or contacting CPC can speed up the process.

Key Takeaways:

 Statutory deadline for FY 2023-24 refunds: December 31, 2025  Refunds are generally processed within 20-45 days after e-verification  Relevant Income Tax Sections: 143(1), 237, 239, 244A, 119(2)(b)  Check refund status via Income Tax Portal or NSDL Portal  Common delays include incorrect bank details, TDS mismatches, and manual scrutiny  Raise a refund reissue request or contact CPC if facing delays