Income Tax Refund

What causes delay in the Income Tax Refund?

By Ankar Kapuria Published On 26 Oct 2021 Updated On 03 Nov 2021 Category Income Tax Return Filling

The rise in employment has also led to the rise in pay scale in the job sector. This rise has also led to the increase in the taxation of the people. The need for Income Tax return has increased due to the rise in capital gain tax. With the huge income in the market the need to file for tax has also increased. There are offices where the tax is deducted from the salary and the rest is paid to the employees while some ask the employee to file for it themselves.

What is an Income Tax Return?

Income Tax Return is a form that the people have to fill in order to inform the government of the financial details. This contains the details for the financial year from 1st April of the present year to 31st March of the next year. The direct tax return is filed on the various income sources such as that of 

  • Income from ones salary, 

  • the Profits and gains earnt through business and profession,

  • Income from the house property,

  • Income incurred through capital gains,

  • Income incurred from dividend, interest on deposits, royalty income, winning on lottery, etc.

After paying the taxes and sending the Income Tax return form there are people who file for a refund. This is done because they would have paid more tax than required based on their income and losses incurred. It is thus important for filing a return so that the exes can be returned back to the people. The ITR is filed by various people and businesses like that of sole proprietorships firms.

How is Income tax Filed?

The earlier system of Income tax filing required a person to submit the application and send the documents personally. This often took a lot of time and effort. The result was also slow and thus causing delays. With the evolution of technology everything can now be done online. With the pess of a few keys one can file an ITR online.

What are the reasons for the delay in refund?

There are times when the refund on the tax gets delayed and people start to worry. It is not that they won't get the return but there are times that certain issues arise such as that of:

  • Refund not getting processed.

  • Not eligible for a rufun based on a certain income missed in the return form which the government must have included in the calculations.

  • The address for the refund might be wrong and thus taking time to reach.

  • It all depends on the kind of return filed and what kind of tax it is. 

In cases like these there might be a slight delay which the government must have not anticipated in case of natural calamities or worse. 

There might also be cases where the refund might be delayed for reasons such as:

  •  Late filing when a person might have filed for the return later than the last day to do so.

  • Incorrect Data can be a major cause as often people end up making slight mistakes which cost them a lot.

  • TDS Mismatch might happen when the employer gets the calculations wrong as a result of which the refund gets delayed.

  • Paper filing is another reason as it takes longer to process thus giving slower refund. This is preferred to have the ITR filing online.

  • ITR-V Delays occur when not doing it online as post services take time to reach and thus delay the process.

  • Not filing the Required Annexure or table along with the supporting documents can also delay the process.


It is always important to know what is happening with one income and a lack of knowledge can result in delays of processing. Having proper documents and data can help in faster processing of tax refund, as explained above that there might be certain delays based on the kind of error it faces or situation around. To make sure there is no mistake from our own end one has to file for the tax return properly and take correct measures in doing the same.

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