Income Tax Refund: After filing Income Tax Return (ITR), if you have a refund, you get it through the Centralized Processing Center (CPC) of the Income Tax Department. Processing of refunds through CPC is fully automated. Many times refund tax is processed within a week of filing the return. Tax authorities have much information related to taxpayers, such as withholding details of the employer, interest details given by the bank, etc.
Authorities also have the provision to access information received in the form of capital gains and dividends etc. The main reason for the delay in tax refund from CPC is the mismatch in the information given in the tax return. In such a situation it is important to avoid these mistakes whenever we file an income tax return so that there is no delay in getting a refund.
Incorrect bank account details
According to the new procedure set by the tax department, income tax refunds are being issued only electronically. This means that refunds are being issued directly to the bank account of the taxpayer. In such a case, if the bank account number filled in the tax form is wrong, then the tax refund will be delayed until the information is corrected. You can correct bank account details online by visiting the income tax department portal. With this, it is important that the bank account you are providing is linked to the permanent account number.
Do not pre-validate bank account
A bank account has to be pre-validated to get an income tax refund. You can go to the income tax department website, enter your PAN and password and then go to profile settings. You will get the option to pre-validate the bank account there. If your bank is integrated with the e-filing portal, then pre-validation will have to be done directly through electronic verification code (EVC) and net banking route. You have to provide your bank account number, IFSC code, mobile number and email ID linked to that account.
ITR not verified
The process of filing income tax refund is completed only when you verify your income tax return. If you do not do this, the process will not be completed and your refund will be delayed.