Question 1

How long does it take to receive an income tax refund in India?

Accepted Answer

Typically, refunds are processed within 4-6 weeks after ITR processing is complete. However, the total timeline varies: E-verified returns (Aadhaar OTP/Net Banking) get priority and can receive refunds in 2-3 months. Physical verification (ITR-V sent to CPC Bangalore) adds 120+ days. If there are discrepancies in Form 26AS or AIS, or if your case is selected for scrutiny, it may take 6-12 months. File early (April-June) for faster processing as the system is less congested.

Question 2

Why is my tax refund delayed or not received?

Accepted Answer

Common reasons include: (1) Bank account not pre-validated on the Income Tax portal, (2) Mismatch between TDS claimed in ITR and Form 26AS, (3) Outstanding tax demand from previous years adjusted against refund, (4) ITR not e-verified within 30 days, (5) Incorrect bank details in ITR, (6) PAN not linked with Aadhaar, (7) Case under scrutiny. Check your refund status on incometax.gov.in under 'e-File > View Filed Returns > ITR Status'. Outstanding demands appear under 'Pending Actions > Response to Outstanding Demand'.

Question 3

Do I get interest on delayed income tax refunds?

Accepted Answer

Yes! Under Section 244A, you receive simple interest at 0.5% per month (6% per annum) on delayed refunds. Interest is calculated from April 1 of the assessment year (or date of advance tax payment, whichever is later) until the refund is granted. For example, if your AY 2024-25 refund of Rs 1 lakh is processed in October 2024 instead of September, you get ~Rs 500 extra as interest. This interest is taxable as 'Income from Other Sources' in the year you receive it.

Question 4

How do I reconcile Form 26AS with my TDS certificates?

Accepted Answer

Download Form 26AS from TRACES or the Income Tax portal. Compare each entry with your Form 16 (salary TDS), Form 16A (other TDS), and TCS certificates. Key checks: (1) Verify TAN of deductor matches, (2) Check quarter-wise TDS amounts, (3) Confirm your PAN is correctly reflected. If there's a mismatch, contact the deductor to file TDS correction return. Common issues: Deductor deposited TDS but didn't file return, wrong PAN quoted, or TDS deposited in different quarter than reported.

Question 5

What is AIS and how does it affect my tax refund?

Accepted Answer

Annual Information Statement (AIS) is an enhanced version of Form 26AS that shows all your financial transactions: bank interest, dividends, mutual fund transactions, property deals, foreign remittances, and more. The Income Tax Department cross-verifies your ITR with AIS. Any mismatch can delay refunds or trigger notices. Before filing ITR: Download AIS from incometax.gov.in, verify all transactions, submit feedback for incorrect entries. TIS (Taxpayer Information Summary) shows the processed values after your feedback.

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