If your ITR is among those that remain unprocessed, you may be wondering why others have been processed and refunds issued, while yours has not
If your Income Tax Return ( ITR ) remains unprocessed while others have received their refunds, you might be wondering what is causing the delay. Here is an overview of the current situation and what you should know about processing timelines and refunds. Are Income Tax Returns Still Pending Unprocessed? As of August 22, 2024, the Income Tax Department has processed 73.71% of all verified ITRs for the assessment year. Out of the 7,13,00,901 verified returns, 5,25,53,097 have been processed, leaving 1,87,47,804 ITRs, or 26.29%, still pending. The Centralised Processing Centre ( CPC ) of the Income Tax Department handles ITR processing through automated systems. Given that many returns were filed close to the July deadline, it’s noteworthy that 70% of ITRs were processed within just 20 days. However, the swift processing of the majority raises concerns about why some returns remain unprocessed, especially when the average processing time has decreased from 93 days in 2013 to just 11 days in 2023. Get a Copy of Bharat’s Income Tax Act, Click here Time Limits for Processing and Refunds Typically, the processing of ITRs takes anywhere from 15 to 45 days after e-verification. Legally, the Income Tax Department is required to process returns within nine months of the fiscal year’s end after the return has been filed and e-verified. Processing vs. Scrutiny: Understanding the Difference Some taxpayers may worry that a delay in processing indicates that their ITR has been flagged for scrutiny. However, it’s important to note that processing and scrutiny are distinct processes. Processing primarily involves checking for mathematical accuracy and verifying tax credit claims. Scrutiny, on the other hand, involves a more detailed examination if necessary and is unrelated to the initial processing of the return. Delays in processing are often due to procedural reasons rather than issues with the verification process. If your return is selected for scrutiny, you will receive a notification explaining the reasons and the steps to take. Why Is Your ITR Still Unprocessed? There are several reasons why your ITR might still be pending. These include discrepancies like mismatches between your PAN and name, complex ITR forms, or cases selected for scrutiny. More complex forms such as ITR-2 and ITR-3, which involve multiple income sources like capital gains or foreign assets, typically take longer to process. Additionally, large tax refund claims may require more thorough checks, further delaying processing. Errors in the ITR, incomplete information, incorrect PAN details, or incorrect bank account information can also lead to delays, as these issues might require further assessment. What to Do if Your ITR Processing is Delayed While delays can be frustrating, they are not necessarily related to scrutiny. Patience is key, as the remaining returns are expected to be processed soon. The CPC in Bangalore is responsible for the initial assessment of ITRs, and processing begins only after the return has been successfully filed and e-verified. After processing, you will receive an intimation notice under Section 143(1) to your registered email address, confirming that your ITR has been processed and specifying any tax payable or refund due. Get a Copy of Bharat’s Income Tax Act, Click here How to Escalate a Delay in Your Refund If you haven’t received your refund within a reasonable time after filing and e-verifying your ITR, first ensure that your ITR has been properly verified. If it hasn’t been e-verified, your filing is incomplete and won’t be processed. If your ITR is e-verified but still unprocessed, you can contact CPC helpline numbers at 1800 103 4455 or +91-80-46605200 from Monday to Friday, 8:00 AM to 8:00 PM. For refunds from previous years, you may need to write to the Assessing Officer of your jurisdiction to inquire about the delay. Checking Your Refund Status To check the status of your refund, log in to the e-filing website using your PAN, password, date of birth, and captcha. Navigate to “My Account > Refund/Demand Status” to see the current status of your refund.