This issue has sparked frustration among taxpayers, many of whom claim to have been using the same bank account for years, without previously facing such problems

In a recent development, the Income Tax Department has begun issuing Refund Failure Notices, attributing the failure to the reason “PAN not linked with Bank Account.” This issue has sparked frustration among taxpayers, many of whom claim to have been using the same bank account for years, without previously facing such problems. A tweet by CA Akhil Pacholi highlighted the situation, pointing out that numerous people have been receiving these failure notices, despite their PAN being linked to their bank accounts for several years. Pacholi also mentioned that grievances filed with the department have been closed without resolution, leaving taxpayers in the lurch. Get a Copy of Income Tax Refunds (Law & Procedure), Click here One major concern raised is that refunds above ₹10,000 appear to be the primary target, with deliberate delays in processing these refunds. Several taxpayers took to social media, sharing their personal experiences. Some claimed that even though their PAN and Aadhaar are properly linked, refunds have been blocked with no clear explanation. A common complaint is the system’s failure to recognize linked accounts, resulting in notices despite compliance. Taxpayers are urged to check their PAN-Aadhaar linking status, as it has become a prerequisite for processing refunds, and unresolved issues may lead to further complications. This issue appears to have broader implications, as many users also shared concerns about potential interest accrual on delayed refunds, wondering whether the delays are systemic or deliberate. Get a Copy of Income Tax Refunds (Law & Procedure), Click here As this tax season ends, the grievances regarding unprocessed refunds are expected to grow unless the Income Tax Department addresses the matter with clarity and offers more transparent resolutions. Taxpayers experiencing similar problems are advised to ensure their PAN-Aadhaar link is in place and to raise concerns through the Income Tax Department’s grievance redressal mechanisms if income tax refunds continue to be withheld. For further details on linking PAN with your bank account or resolving refund issues, please refer to the official Income Tax e-filing website.