What to Do In case of Delay in TDS Refund?

What to Do In case of Delay in TDS Refund?

Interest in TDS Refund:

According to the provisions below Section 200A of the Income Tax Act, if the taxation Department delays or is late in paying the refund tax quantity, then the payer is entitled to urge a simple interest of 6% per annum on the desired refund quantity.

The same interest can begin accruing from the start of the financial year i.e., 1st April. However, the aforementioned interest isn't if the refund tax quantity is less amount than 10% of the total payable tax in an exceedingly specific financial year. Apart from that, the interest earned on the refund tax quantity will be assessable because the same is thought about as financial gain below the head "Income from different Sources".

Also ReadPenalty for Late Filing TDS Return

What to do if you have not received the refund yet?

In case a payer has not received the tax refund at intervals within the stipulated time. Then, he will follow the below-mentioned steps to understand the status of the TDS refund;

Step 1: Click on the official website of the income tax filing and login into the account by providing details of login ID, Password, and date of birth or date of incorporation.

Step 2: After logging into the account, click on the option ‘View e-filed Returns/Forms’ tab and choose the relevant option from the drop-down list i.e., ‘Income Tax Returns’ and then click on the button "submit".

Step 3: Then click on the acknowledgment number for the specified assessment year that one needs to examine the refund status. For instance, if one needs to understand the refund status for the year 2016-17 then click on the acknowledgment number of the assessment year 2017-18.

Step 4: The status of the TDS return will be shown on the screen on a new window containing info together with the mode of payment, assessment year, and reason for the failure of refund if any.

It is to be noted that the payer may log in to the website of NSDL-TIN to examine the taxation refund. The link to examine the refund status is https://tin.tin.nsdl.com/oltas/refundstatuslogin.html.

The status of the refund will be displayed once getting into the assessment year, PAN, and CAPTCHA code within the preceding link.

How to file a complaint about a delay in Income Tax or TDS refund:

There are several reasons that when File ITR Online, a payer might not receive the refund on time or there'll be a delay in receipt of the refund quantity. Therein case, a payer will file a dispute with the taxation Officer. The taxation Officer can be contacted with all the relevant and necessary documents. In case, a payer doesn't receive a satisfactory response on the matter, then he will contact the taxation investigator with the below-mentioned details;

✅ Form 16

✅ Permanent Account range (PAN)

✅ Bank Statement

✅ All the documents associated with earnings and investments

✅ TDS certificates issued by Bank

Reasons for Non-Refund and Action Plan for Refund:

There may be many reasons why the refunds don't seem to be attributable to the taxpayer's bank account. A table containing the explanation whereof and therefore the action setup needed to tackle such a situation is provided below;

Learn How to File TDS Return Online at Academy Tax4wealth.

Reasons for Non-Refund:

✅ The taxation department needs some extra documents to process the refund request.

✅ The refund has been rejected and per the taxation Department, the payer owes taxes to be paid to the IT department.

✅ If the refund standing seems to be incorrect per the examination of the Income-tax Department. Then the refund is rejected.

✅ Forgetting to urge a deduction that the payer is eligible for

✅ The bank details are provided to the taxation Department whereas filing the comeback is modified.

✅ Refund requests square measure processed below a pair of levels. Thus, the delay may be divided into the subsequent pair of levels:

✅ The income-tax department is intense abundant time processing the refund request.

✅ The taxation department has already started the process of processing the refund however the delay is occurring at the tip of the bank.

✅ If the ITR filing is done in physical form and not re-filled (Online Filing).

Also, read 👉 Section 194Q – Tax deduction on the purchase of goods and FAQs.

Action Plans:

1. Immediately contact the Assessing officer via email, post, or phone and submit the desired documents as requested. Once, the documents are submitted get the acknowledgment of the said submission of documents.

2. The payer could receive a notice from the taxation Department stating the amount of tax that the payer owes to them. In such a case, check all the documents rigorously once again and re-compute the liabilities and refund owed.

3. If the amounts and details stuffed within the taxation return are correct then file a rectification supporting the claim for the correctness of documents.

4. In case the returns filed are found to be incorrect then the payer must pay the outstanding taxes as demanded by the taxation Department at intervals within the stipulated time as per the notice sent by the IT department.

5. If the refund status seems to be incorrect as per the examination of the Income-tax Department, a notice is issued with evidence of its incorrectness.

6. Although the payer receives such notice, he can still file for a rectification supporting his claim for the correctness of the refund file.

7. If the Income-tax department is nevertheless to start to method the comeback, then the payer will revise the returns and add the missing items like the deductions that he's eligible for.

8. If the bank account details are modified, inform identical to the Assessing Officer of the new or latest bank Account Number along with MICR and IFSC code.

Also, Read 👉 What are The Income Tax Rules Changes from July 1, 2022

Accordingly, the Assessing Officer can inform identical to the bank and request to update the details within the fund transfer method.

1. Ensure to send the ITR-V within the stipulated time i.e., 120 days from the date of e-filing.

2. In such a case, file the revised returns and send the acknowledgment to CPC, Bengaluru.

3. The processing of physical forms makes take longer time as compared to online filing.  In such a case, wait for the reconciliation of paperwork by the Income-tax Department.

Click here to Know, all about the Deductions under Income Tax.


Why is the income tax refund delayed?

If you have got filed the tax return for FY 2020-21 and failed to receive the taxation refund nevertheless, check whether or not you have got completed the verification (online or offline) of your taxation return. If it's not, then verify the return If the income tax return is e-verified and processed however still refund isn't attributable to your account. Submit a grievance on the e-filing portal, grasp the rationale for identical, and respond consequently.

My income tax refund isn't processed. However, do I escalate this?

If you have got filed your income tax return and haven't received a tax refund in an inexpensive time, initial ensure that you have got verified your taxation come online or offline. ITR filing is incomplete and isn't processed until it's e-verified.

When will we get an income tax refund?

Refunds are issued within 20-45 days once the process of ITR by the CPC department of taxation.

Look at A Complete Analysis of Section 194R of Income Tax.

How to check income tax refund status?

To check the taxation refund status, log in to your e-filing account.

Click to ‘e-File’> ‘Income Tax Returns’>’ View Filed Returns’.

Go to the relevant assessment year for which you want to see the refund and check the ITR status.

BY: Admin Tax4wealth

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