If you’ve overpaid your taxes for a financial year, you’re entitled to receive an income tax refund after filing your Income Tax Return (ITR). However, the refund is only issued once the tax department processes your ITR and sends you a confirmation notice under Section 143(1) of the Income-tax Act, 1961. For FY 2023-24 (AY 2024-25), the deadline to file ITR was July 31, 2024.
The State Bank of India (SBI) is responsible for processing and crediting tax refunds directly into the taxpayer’s designated bank account, which is specified in the ITR. Therefore, it’s critical to ensure that the bank account details (including the correct account number and IFSC code) are accurate. Moreover, taxpayers need to pre-validate their bank accounts on the income tax e-filing portal and link their PAN with the bank account for smooth refund processing.
Once you’ve e-verified your ITR, the refund is typically credited to your account within 4 to 5 weeks. If you haven’t received your refund in this period, it’s advisable to check for any email communication from the Income Tax Department regarding discrepancies. You can also track the status of your refund online.
You can track your refund through two platforms:
Follow these steps to check the status of your refund:
Your ITR has been processed, and the refund has been successfully credited to your account.
If there are outstanding demands from previous years, the tax department can offset part of your current year’s refund against those dues. Before doing so, they will issue a notice under Section 245, informing you of the adjustment. You must respond to this notice to confirm whether you accept or contest the adjustment.
Similar to partial adjustment, the department can deduct the full amount of your refund to settle outstanding tax dues from prior years. A notice under Section 245 will be issued to inform you before the adjustment is made.
This status indicates that while your ITR has been processed, the refund could not be credited to your account due to incorrect or unverified bank details.
Inoperative PAN:
If your PAN is not linked to your Aadhaar, it becomes inoperative, leading to refund failure.
Incorrect Bank Details:
Errors in account number, MICR code, IFSC code, or name mismatch can result in refund failure.
Pending KYC:
If the KYC process for your bank account is incomplete, the refund cannot be processed.
Invalid Account Type:
Refunds can only be credited to savings or current accounts, not any other type of account.
Incorrect Account Description:
Providing incorrect descriptions or details of the bank account can lead to refund failures.
By ensuring your ITR is filed accurately and your bank details are up-to-date, you can avoid delays in receiving your tax refund for FY 2023-24.
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