1.2 million ITR filers for FY 2023-24 have not got refund: How to fix issue
New Delhi, Feb 10, 2025
According to an expert, if all details are correct and no notices are pending, but the refund is still not received, contact the Centralised Processing Center (CPC) of the Income Tax Department
The Ministry of Finance has provided an update on the settlement of Income Tax Returns (ITRs) filed for the Assessment Year (AY) 2024-25, highlighting significant progress in refund disbursement while acknowledging pending cases due to technical and procedural issues.
According to the response given by Minister of State for Finance, Pankaj Chaudhary, in the Rajya Sabha, a total of 39.8 million ITRs claiming refunds were filed for AY 2024-25 as of January 21, 2025. Of these, 39.4 million ITRs were verified by taxpayers and treated as valid. Out of these verified returns, 36.8 million refunds have been accounted for, with refunds successfully credited to 35.6 million taxpayers.
However, approximately 1.2 million ITRs faced issues where refunds issued could not be credited to the taxpayers’ accounts. The key reasons identified for these failures include:
The bank account provided in the ITR is not valid.
The refund was sent to the destination bank, but returned.
Proceedings for adjustment of refund to outstanding demand under section 245(1) of the Income tax Act, 1961 are pending.
PAN is not linked to Aadhaar.
Proceedings for adjustment of refund under section 245(2) of the Income-tax Act, 1961 are pending.
In addition, the main reasons for pendency of refunds are as under:
Reply awaited from taxpayers in respect of notices issued for defective return and other communications.
Other cases, involving variance, are at the post verification stage.
Amit Bansal, partner, Singhania & Co. explains steps taxpayers should take if they have not received refund:
Verify bank account details: Ensure that the bank account mentioned in your ITR is correct, active, and capable of receiving refunds.
The account should be pre-validated, and the PAN should be linked to the bank account.
Respond to defective return notices: If you have received a notice regarding a defective return, promptly respond to it.
Link PAN with Aadhaar: Visit the Income Tax e-filing portal to link your PAN with Aadhaar if not already done.
Check for outstanding tax demands: Log in to the e-filing portal and check the 'outstanding tax demand' section to see if any previous dues are pending.
If there are outstanding demands, consider paying them or seeking clarification from the tax department.
Contact the Income Tax Department: If all details are correct and no notices are pending, but the refund is still not received, contact the Centralised Processing Center (CPC) of the Income Tax Department.
[The Business Standard]
