Many taxpayers, who have filed their returns and
sent across their verification form in June or July, usually get the
acknowledgement and refunds around October of the year. However, quite
often, many taxpayers complain that they did not get the intimation of the
receipt of their ITR-V (verification form) on time. Some also complain
about delayed refunds.
“Once the tax return has been filed online and the ITR-V (verification)
sent to the income tax department, the subsequent procedure is completed in
three steps. First, the I-T department acknowledges the receipt of the
ITR-V through an SMS or e-mail. Next, the taxpayer is notified once the
return is processed, post which the refund process is initiated,” says
Vineet Agarwal, director with tax consultancy firm KPMG.
He adds that in most cases, taxpayers forget to the send the ITR-V within
the 120-day deadline, which results in not receiving the acknowledgement
from the IT department. However, if you also haven’t got refunds despite
completing the return-filing procedure well in time, you need to ascertain
the possible causes to resolve the matter. Here are some clues:
NON-SUBMISSION OF ITR-V
The last date for filing tax returns is July 31 every year (August 5
this year), but the process is considered complete only after the I-T
department receives the physical copy of your ITR-V, unless you have
obtained and used your digital signature. Taxpayers, who file their returns
online without the DS, have to take a printout of the ITR-V form and send
it by regular or speed post to I-T department’s Centralised Processing
Centre in Bangalore within 120 days of filing the return online. Now, if
you have forgotten to send this form, you will not receive the
acknowledgment or refunds in time. Those who have filed their returns in
late-June or July still have time in hand to complete the process.
CHANGE IN BANK ACCOUNT, ADDRESS
If you have closed your bank account after entering the account number
in your tax return, it could possibly be the reason for not receiving the
tax refund. Similarly, an incorrect bank account number in your tax return
could be another reason. Taxpayers are typically advised to opt for direct
credit of the refund amount to ensure quicker processing. However, the
income tax department still persists with the cheque mode in certain cases.
“High-value refunds (typically the ones above . 25,000, though this
threshold may be changed by tax authorities from time to time) are issued
by cheque even if the taxpayer has opted to receive those by direct
credit,” informs Vaibhav Sankla, director with tax consultancy firm H&R
Block. The cheques are despatched to the address mentioned in the tax
return. “Therefore, the taxpayers claiming highvalue refunds should ensure
that they mention their permanent address in their tax returns,” he adds.
INCOMPLETE DETAILS
You have to be extremely careful about entering all the relevant
details at the time of filing returns, if you are claiming a tax refund.
For example, many salaried employees claim refunds on donations made under
section 80G, as employers typically do not include it in Form 16. Any error
in details like the amount donated, charity’s name, address, and
particularly PAN, could result in rejection of the refund claim. Likewise,
if you have not followed the eligibility matrix (some donations entitle you
to 100% exemption, while in case of others, it is restricted to 50%) and
have claimed a higher amount, your claim could be rejected or restricted.
THE RECOURSE
To begin with, ascertain the reason why you haven’t received the tax
refund. “If you have filed your return online, you can check your refund
status on the I-T portal incometaxindiaefiling.gov.in. If it has been
rejected, you will also be able to view the reasons for the same,” says
Agarwal. “If the tax refund is stuck either because of an incorrect account
number or the incorrect address was mentioned in the tax return, you have
to follow the process laid out for requesting for re-issue of refunds,”
adds Sankla.
Your job could be easier if you have filed your return online. “If the
return is e-filed, one can log in to his account with the I-T department’s
e-filing portal and follow the simple steps for re-issue of refund,” he
adds. E-filing was mandatory this year for those with a taxable income of over
.5 lakh.
Preeti Kulkarni
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