About 12 lakh taxpayers have not yet received their income tax refund for the financial year 2023-24. A total of 3.68 crore refund claims were made in FY 2023-24, and these refunds are still pending due to various reasons. The government provided this information in the Rajya Sabha. Minister of State for Finance, Pankaj Chaudhary, shared the detailed information in a written reply.
Minister of State for Finance’s Statement
- 3.98 crore ITRs claimed refunds for the assessment year 2024-25 (up to January 21, 2025).
- 3.94 crore ITRs were verified and considered valid.
- Refunds were issued in 3.68 crore ITRs.
- 3.56 crore taxpayers successfully received their refunds.
- 12 lakh cases faced refund failures due to various reasons.
Reasons for Refund Failures
The minister mentioned several possible reasons why refunds failed to reach taxpayers’ accounts:
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- Incorrect bank account details in ITR
- The refund was returned by the bank
- Tax dues adjusted under Section 245(1)
- PAN and Aadhaar not linked
- Pending refund adjustment under Section 245(2)
- Pending response to a notice for a defective return
- Pending verification of cases with deficiencies
- Other technical reasons
Refunds delayed for 12 lakh taxpayers.
If you delay tax → 1% per month + penalty.
If the govt delays refund → 0.5% per month.Your delay? 12% yearly cost.
Govt delay? 6% interest on your money.You pay for being late.
They profit from delaying.Still think this is fair?
— Money Theory (@money_theory) February 8, 2025
What Should Taxpayers Do?
To avoid refund failures, taxpayers should take these steps:
- Provide correct bank account details while filing ITR
- Ensure PAN is linked with Aadhaar
- Respond promptly to tax department notices
🚨Income tax refunds have not been credited in approximately 12 lakh ITRs. 🚨 pic.twitter.com/fCnxSQYlJk
— Taxology India (@taxologyin) February 6, 2025
What is an Income Tax Return (ITR)?
Filing an Income Tax Return (ITR) is the process of reporting income, expenses, deductions, and tax payments to the income tax department. Individuals, businesses, and other entities file ITR to determine whether they need to pay additional tax or are eligible for a refund.
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This article discusses: ITR Refund Update: Government Explains Why Your Refund is Pending, Here’s What You Need to…