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Not received tax refund yet? Here is what you can do

Steps to check ITR Status, reasons for non-processing of return and remedy thereof



Filing your income tax returns is no small feat. One needs to keep all proofs and appropriate documents in place. Hence, any hiccup in the process can actually be quite tiresome.

Once an individual files and verifies the income tax returns, the Income Tax Department will initiate the processing of the income tax returns. As a part of the process, they will send the taxpayer an intimation notices about the same, as per Section 143(1) of the Indian Income Tax Act, 1961. However, there can be instances of ITR not processed due to some irregularities or errors in the income tax returns. Now, you must be thinking “How will I come to know if my tax returns are stuck in the status, ITR not processed? What can I do about it?”

ITR status can be checked by following the below steps:

Step 1: Visit the e-filing portal of the Income Tax Department.

Step 2: Click “ITR Status” under the heading Quick Links.

Step 3: Fill out your PAN, ITR Acknowledgement Number, Captcha Code and click Submit.

Step 4: ITR status will be displayed after you click Submit.

If the status is “Return Submitted and Verified”, it means that ITR is yet to be processed. While if the status is “Return Processed”, it means that your ITR has been processed.

You may also check status of your refund after logging to the e-filing portal using your PAN and password.

Refunds in case of ITR 1 and ITR 4 are getting processed in around a week’s time of filing of the tax return. This is happening under the "Jhatpat refund scheme" of the tax department.

Once you file and verify your ITR it will be processed by the income tax department in a reasonable time. You need to wait until it is processed. It usually takes 45-60 days for the processing of Income-tax return. ITR Processing involves checking the TDS claimed by you with form 26AS, tax and Interest calculations and other arithmetic calculations. Once your ITR is processed CPC (Central Processing Centre) issues intimation notice under section 143(1).

The issue of intimation notice 143(1) means your return is checked and found in order. In other words, income details and calculations mentioned in your ITR are matched with the record of the income tax department.

Let's Discuss the reasons for non-processing of your ITR and how can you correct the same:

1. E-Verify Your Return

Once you have uploaded your ITR online, you need to verify it to complete the return filing process. In case, you do not verify your return within 120 days of ITR uploading, your ITR may be declared invalid. The easiest way to verify your ITR is via e-verification since it is quick, paperless, safe and you receive instant acknowledgement regarding the same. You may e-verify your ITR using Aadhar OTP, Netbanking, Bank Account EVC, Demat Account EVC, and DSC.

2. Check your Tax Credit Mismatch and Resolve the Same

Another reason that your ITR hasn’t processed is that there is a mismatch in your Tax Credit as appeared in Form 26AS. In order to check and correct this mismatch, you must login to your e-filing account, and depending on the reason, you may:

  1. File a revised return or,

  2. Ask your deductor to file a revised TDS Return.

3. Your ITR Contains Errors

One of the most prominent reasons that your ITR hasn’t processed is that it contains frequently noticed errors. A discrepancy in your ITR may have arisen on account of failure to:

  1. Include certain income(s) like interest income

  2. Include income from the previous employer within the same financial year

  3. Fill/incorrectly filled Schedule 80G in ITR

  4. Mention the exempt income in ‘Schedule EI’ of ITR

  5. Claim Deduction under section 80C accurately

  6. Check the details entered in the audit report forms (e.g. 3CD) matches with the details entered in ITR

In case of any of the errors listed above, you must file and e-verify a revised return immediately.

4. Outstanding Tax Demand Unresolved

In case you have received a demand notice from the Income Tax Department and have not responded to it, then this may result in the non-processing of your ITR. In this case, you must immediately respond to the demand notice by logging to the e-filing portal. Once you login, you may either choose to disagree with the demand notice, in which case you will have to provide details for such a disagreement, or you may agree to the demand and pay the required amount.

5. Different PAN linked to Bank Account which was selected by you for tax refund.

 The best way to avoid this error is to pre-validate your bank account. In case you are unable to pre-validate, check the PAN associated to your bank account. If it is different from yours, you need to get it corrected from your banker first so that your refund can be processed.

What to do when ITR is not processed?  

If your ITR has not been processed for a long time, then you can raise a grievance for the same. Following are the steps to raise the grievance:

Step 1: Log into the e-filing portal of the Income Tax Department.

Step 2: Under the “e-Nivaran” tab, click “Submit Grievance”.

Step 3: A grievance form will be displayed with auto-populated personal details. Make sure that the details are correct. Step 4: Fill out the grievance details.

  • Resolution Sought From: Centralised Processing Center for Income Tax Return (CPC – ITR).

  • Grievance Category: Processing

  • Grievance Sub-category: Others – Processing

  • Assessment Year: Select the relevant AY.

  • Financial Year: Select the relevant FY.

Step 5: Write the details of your grievance in the description box and click “Preview and Submit”.

A grievance ID will be shown after you submit the grievance. Also, a link will be shown to download your grievance. Generally, the Income Tax Department replies to a grievance message within 7 to 10 days of submission.

You may also call to Centralised Processing Center 1800-103-4455 (or) +91 80-46605200 on Monday to Friday 08:00 A.M. to 08:00 P.M.

In case you face any difficulty, you may contact us. We will be happy to help you.

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