As the tax season for the assessment year 2024-25 draws to a close, many taxpayers are eagerly waiting for their income tax refund. However, there are a few reasons why your refund might be delayed, one of them is the issue of incorrect Income Tax Return (ITR).

Over 70 million ITRs were filed before the July 31, 2024 deadline. As of August 23, the Income Tax Department had processed 534 million of these returns. Yet, over 20 million verified ITRs remain unprocessed. One of the main reasons for this delay is the increase in the number of ‘defective ITRs’ notices sent by the tax department this year.

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What is a faulty ITR?
A defective ITR is a tax return that contains incomplete or contradictory information in the form or in the attachments or has other problems that prevent the return from being processed correctly. If the Income Tax Authority finds any deficiency, it will send a notice under Section 139(9) of the Income Tax Act to the taxpayer’s registered email address or by post. This notice can also be viewed on the e-filing portal.

How to respond to an incorrect ITR notification
If you receive an erroneous ITR notice, you have two options: file a new return or revise the existing one if there is still time left in the tax year. Alternatively, you can respond to the notice directly under section 139(9). It is important to respond to the notice promptly because if you miss the deadline, you will not be able to file a new or revised return. In such cases, your ITR for the tax year 2024-25 could be considered invalid or not filed.

Deadline for correcting a defective ITR
After receiving an erroneous ITR notification, you have 15 days from the date of notification to correct the problem. The time frame may be specified in the notification itself. If required, you can seek an extension by requesting an adjournment.

To avoid delays in your tax refund, it is important to understand and process erroneous ITRs promptly. Check your registered email address and e-filing portal regularly to ensure you do not miss any important notices from the Income Tax Department.

How to check your ITR refund status

You can easily track your income tax refund status online on the official website of the Income Tax Department. Follow these steps to check the status of your refund:

• Visit the Income Tax Department’s e-filing website.
• Login with your PAN credentials.
• On the home page, navigate to the “My Account” section.
• Click on the “Refund/Claim Status” option.

The status of your income tax refund will be displayed, including details such as assessment year, current status, any reasons for a failed refund, and payment method.