ITR 2024 Refund Delayed? Here's Why It's Taking Longer And How To Track It

ITR Refund: Despite submitting their returns on time, a significant number of filers are still awaiting their refunds, sparking widespread concern across the country

ITR refund: As the deadline for filing Income Tax Returns (ITRs) for Assessment Year 2024-25 passed on July 31, many taxpayers are growing anxious over delayed refunds. Despite submitting their returns on time, a significant number of filers are still awaiting their refunds, sparking widespread concern across the country.

The delay in processing ITRs and issuing refunds has become a significant issue this year, primarily due to the increased number of defective ITR notices. Taxpayers are encouraged to understand the reasons behind these delays and to promptly address any issues with their returns to ensure a smoother and faster refund process. According to recent data, over 7 crore ITRs were filed by the July 31 deadline. However, as of August 23, 2024, the Income Tax (I-T) Department has processed only 5.34 crore of these returns, leaving more than 2 crore verified ITRs still unprocessed.

One of the primary factors contributing to this delay is the rise in 'Defective ITR' notices issued by the tax department this year.

Understanding Defective ITRs

A defective ITR is a return that contains errors, incomplete details, or inconsistencies in the information provided, which hinders the Income Tax Department's ability to process it correctly. Taxpayers whose ITRs are flagged as defective will receive a notice under Section 139(9) of the Income Tax Act. This notice is sent to the taxpayer's registered email or by post and can also be accessed via the e-filing portal.

Steps to Address Defective ITR Notices

Taxpayers who receive a defective ITR notice have two options: filing a fresh return or revising the existing one, provided there is still time within the assessment year. Alternatively, they can directly respond to the notice under Section 139(9). It is crucial to act swiftly, as missing the deadline could result in the ITR being considered invalid for the assessment year 2024-25.

Deadline for Rectifying Defective ITRs

Upon receiving a defective ITR notice, taxpayers have 15 days from the notice date to rectify the issues. This timeframe is typically specified in the notice itself. If more time is needed, an extension can be requested by asking for an adjournment.

Promptly addressing defective ITRs is essential to avoid further delays in receiving tax refunds. Taxpayers are advised to regularly check their registered email and the e-filing portal to ensure they do not miss any important notices from the Income Tax Department.

How to Check ITR Refund Status

Taxpayers can easily track the status of their income tax refund online through the Income Tax Department's official website. The process involves logging into the e-filing website using PAN credentials, navigating to the 'My Account' section, and selecting the 'Refund/Demand Status' option. The refund status, including details such as the assessment year, current status, reasons for refund failure (if any), and payment method, will be displayed.