By Priyanka Sambhav
You have not yet filed IT return since the deadline has been once again pushed further to 31st December 2020 then you must do so now. There is no point in waiting till the last minute, especially if you have a pending refund. Many taxpayers have already filed their return for AY 2020-21 i.e. FY 2019-20 quiet ahead around June-July but are yet to get their refunds. The refund is delayed as the Income Tax department is undergoing a technical upgrade. The official Twitter handle of Income Tax department said in a tweet, “As part of our commitment to provide improved taxpayer services, we are moving to a new, technologically upgraded platform(CPC 2.0) for faster processing of ITRs. ITRs for AY 2020-21 will be processed on CPC 2.0. We thank you for your patience while we migrate to the new system.”
A refund gets processed within 20-45 days after the processing of your return but this is an ideal scenario. Usually, taxpayers wait can stretch to months. The refund claim of up to Rs 5 lakh gets directly credited to the bank account. When a taxpayer is eligible for a refund, he/she needs to ensure the following-
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If you owe tax to the department as per previous year’s computation
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You may be asked to give additional supportive department explaining your claim so keep an eye on your mail and respond to it as soon as possible
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Cross-check your bank account number
Expert feel that delay in tax refund is nothing new and technical upgrade is just one of the reasons. Tax Expert & Founder KCC group Sharad Kohli says, “The mystery behind tax refunds has been baffling taxpayers from times immemorial. Despite the technology-driven initiative refunds for many taxpayers still prove to be elusive. However, little do the taxpayers know the reasons behind this delay can be many and genuine too.” According to Sharad Kohli, under the current scenario where returns are being processed electronically, a refund can be delayed due to one of the following reasons-
1. Filing an unverified return
2. Filing a belated return
3. An outstanding demand in any of previous years
4. Mismatch with 26AS
5.Mentioning incorrect bank details
6. Filing return in a form not applicable to the taxpayer
7. Pending reply to a notice
8. An error in compiling the return
9. Error in tax computation
10. System upgrade at the department’s end
11. Fiscal limitations
This year has been a year of exception, delays are inevitable. The due date has seen two extension and due to lockdown tax collection has been slow and subdued as well. Meanwhile, if you can check the status of your refund on income tax e-filing portal (www.incometaxindiaefiling.
Here is a link to a previous Thebuyt.com’s article where CA Mayoor Kapur has explained how you can check the status of income tax refund. Click for details-
