Out of 3.68 crore Income Tax Returns where tax refunds were issued for FY2023-24, tax refunds have not been credited to the taxpayer’s account in case of about 12 lakh ITRs due to various reasons. This was stated in the Rajya Sabha by the minister of state in the finance ministry. The due date to file Income Tax Return (ITR) for individuals not liable for income tax audit for FY 2023-24 (AY 2024-25) was July 31, 2024. Pankaj Chaudhary, minister of state in the Ministry of Finance, said in written reply to a question asked in the Rajya Sabha: “The number of Income Tax Returns (ITRs) relating to Assessment Year 2024-25, where refund is claimed is 3.98 crore (as on 21.01.2025). Out of this, 3.94 crore ITRs are verified by the taxpayers and hence, are treated as valid. Out of such 3.94 crore ITRs, 3.68 crore refund returns are accounted with refunds issued. In 3.56 crore ITRs, refund has been paid to the taxpayers. In approximately 12 lakh ITRs, the refund issued has failed to be credited to the taxpayer’s account.”
Why 12 lakh ITR tax refunds were not credited to taxpayers’ bank accounts
Minister Chaudhary said: “In approximately 12 lakh ITRs, the refunds issued have failed to be credited to the taxpayer’s account due to the following main reasons:
- The bank account provided in the ITR is not valid.
- Refund was sent to the destination bank, but returned
- Proceedings for adjustment of refund to outstanding demand u/s 245(1) of the Income tax Act, 1961 are pending.
- PAN is not linked to Aadhaar.
- Proceedings for adjustment of refund u/s 245(2) of the Income-tax Act, 1961 are pending.
In addition, the main reasons for pendency of refunds are as under:
- Reply awaited from taxpayers in respect of notices issued for defective return and other communications.
- Other cases, involving variance, are at post verification stage.”
How to check the ITR portal for any defective ITR income tax notice?
As seen from above, the Minister said one of the main reasons why 12 lakh ITR filers have not received tax refunds is that taxpayers failed to reply to notices issued for defective ITR and other reasons.
Here’s a step-by-step guide on how to check if you have been issued a notice for filing defective ITR on the ITR e-filing portal:
Step 1: Go to the e-filing ITR portal and login using your credentials. Then click on the ‘e-Proceedings’ tab under the ‘Pending Actions’ column.
ITR e-filing portal
Source: e-filing ITR portal
Step 2: If there is a ‘defective ITR’ notice under section 139(9) issued to you for the ITR you have filed then it will show under ‘For your Action’ tab. Click on the ‘View Notices/Orders’ button.
Income Tax India YouTube channel
Source: Income Tax Department Official YouTube channel
Step 3: A new web page will open and here you need to click on the ‘Submit Response’ button to give your reply to this ‘defective ITR’ notice. Once you click this button a new webpage will open.
Income Tax India YouTube channel
Source: Income Tax Department Official YouTube channel
Step 4: If you disagree with the defective ITR notice then click on the ‘Disagree’ button and write the reason for disagreement. If you agree, then click on the ‘Agree’ button and select the mode of response as ‘Offline Utility’ and then select your ITR type as the form you used for ITR filing i.e. ITR-1, 2 or 3 for individuals. Fill in the ITR form again with correct details and upload/file it again. Once you have filed your response (corrected ITR), you need to accept a declaration and then proceed. After filing corrected ITR you need to e-verify it also. However, above procedure can’t be used for changing gross total income or deduction/exemptions in the ITR.
Also read: More taxpayers getting defective ITR notice from tax dept this year; How to rectify the defect.
If you wish to change the original gross total income or deductions claimed under Chapter VI-A of the Income Tax Act, 1961 then you need to file a revised ITR.
Income Tax India YouTube channel
Source: Income Tax Department Official YouTube channel
Source Link
