Restricted Refund In Income Tax Return: ITR deadline for AY 2023-24 is approaching fast with just 5 days left to July 31. Over 4 crore ITRs have been filed so far, out of which over 2.4 crore ITRs have been processed. Various taxpayers are facing refund delay or failure, showing ‘Restricted Refund’ or ‘No Eligible For Refund’ in the income tax portal. Here’s why ITR refund gets failed and what you should do to get your refund faster.
Income Tax Refund Processing: Reasons Why ITR Refund is Failed
Maneet Pal Singh, partner at I.P. Pasricha & Co, said income tax refunds can fail due to various reasons, including:
1. Incorrect Information: If taxpayers provide inaccurate details like bank account numbers, names, or addresses, the refund might fail to credit. Details of the PAN and bank account should match.
2. Filing Errors: Mistakes in the tax return, such as miscalculations or incomplete information.
3. Outstanding Demand: If a taxpayer owes money to the government, the refund may be used to offset the income tax demand.
Singh said if your income tax refund fails, taxpayers should take the following steps:
1. Verify information
2. Check the ITR refund status and resubmit the request for the release of the refund
3. Rectify/ amend the return
4. Clear outstanding demand if any.
Apart from this, your bank account should be validated in the income tax portal. “Only a pre-validated bank account can be nominated to receive an income tax refund,” according to the income tax department’s website.
“For successful pre-validation, you must have a valid PAN registered with e-Filing, and an active bank account linked with the PAN,” it said.
Taxpayers can pre-validate multiple bank accounts and can nominate more than one bank account for the income tax refund, according to the I-T website.
Only saving bank accounts, current accounts, overdraft account, NRO account, and cash credit accounts can be pre-validated for refunds. Loan or PPF accounts cannot be pre-validated for this purpose.
The pre-validation process is automatic. Once your request is submitted, it is sent to your bank. The validation status is updated in your e-Filing account within 10-12 working days.
How To Check Your ITR Refund Status
Step 1: Visit the E-filing portal.
Step 2: Scroll down the ‘Quick Links’ section till you see ‘Know Your Refund Status’. Click on it.
Step 3: Fill in your PAN number, assessment year (2023-24 for the current year), and mobile number.
Step 4: You will get an OTP. Fill in the OTP in the given place.
Now, it will show the income tax refund status. If there is some issue in your ITR bank details, it will show: ‘No Records Found, please check your E-filing processing status by navigating through e-File – > Income Tax Returns – > View Filed Returns‘.
Comments
0 comment