A large number of taxpayers are experiencing delays in receiving their income tax returns (ITRs) this year. The Economic Times reported that the delay can be attributed to errors in filing, system checks for high-value claims, and taxpayers' failure to complete the verification process. Several taxpayers have been experiencing extensive delays because their tax filings are either undergoing additional review or are missing key compliance factors. However, small income tax refunds have already been processed.
The Income Tax Department has until December 31, 2026, to send the refunds filed in FY2024-25, under Section 143(1) of the Income Tax Act, 1961. If previous tax refunds need review, then the respective ITRs can be withheld under Section 245(2) of the IT Act, The Economic Times reported.
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An expert's take
“Taxpayers may check the status of refunds by selecting the requisite option on the Income Tax portal. If ITR payments are delayed. It is better to wait if the status shows ‘pending,’ because it is possible that the return took time to process. Those who filed their returns closer to the last date, which was September 16 this year, many of them have not yet received their payments. It is also possible that wrong account details were entered, leading to the non-processing of the claim. This can be addressed by filling out the acknowledgement number of the filing and the amount to be received in the requisite option, after which the Income Tax Department sends a status update of the claim within 6 to 7 days. People make mistakes while filing their ITRs, which also might lead to non-processing of the claim,” financial advisor and tax consultant Soumik Banerjee told News Ei Samay.
When asked about the penalties for late ITR filing, Banerjee said, “The assessee can file their returns until December 31 of this year for FY24-25, but the due date was September 16. A late fee under Section 234F of the Income Tax Act will be charged to individuals filing their returns beyond the due date. If the income of the person is above Rs. 5 lakh, then the penalty will be Rs. 5,000. If the income is below Rs. 5 lakh, then the penalty will be Rs. 1,000.” He added, “If a person doesn’t fall under taxable income, they will just have to pay the late fee. If the person falls under the taxable category of income, an interest will be charged along with the late fee under Section 234A of the Income Tax Act, which will be 1 percent per month on the unpaid tax amount.”
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How to avoid these issues?
“The easiest way to avoid all of this is to file your taxes within the due date. People should also not wait for the last date of filing, and file at least a month before the due date. Assessees who filed their returns with substantial time in hand before the last date have mostly received their returns on time,” Soumik Banerjee further noted.
