Waiting for your income tax refund can be frustrating, especially when others have already received theirs. Most delays do not happen because of system issues but because of small, avoidable mistakes made during the filing process. From missed verifications to incorrect bank details, even a single tiny error can delay your refund by weeks.
Getting your refund on time depends on how carefully you file your return. The Income Tax Department starts processing refunds only after verifying your ITR, so accuracy and timely filing are essential. In this guide, we will go through the most common filing mistakes that delay refunds and show you how to avoid them to get your money faster.
Understanding the Income Tax Refund Process
How the Refund Process Works?
After filing your Income Tax Return, the department starts processing it only when you complete e-verification within 30 days. Once verified, your return is checked for accuracy against Form 26AS, AIS, and TDS details. If everything matches, the refund is approved and transferred directly to your bank account through the electronic clearing system. Usually, it takes about four to five weeks for the refund to arrive.
Common Filing Errors That Lead to Delays
Not Verifying Your ITR on Time
Filing your ITR is not the final step. You must verify it within 30 days of submission for it to be processed. If you fail to do this, the Income Tax Department treats your return as invalid. E-verifying your return through Aadhaar OTP, net banking, or the income tax portal ensures that your refund process begins without delay.
Filing Returns Late
Filing your return close to the deadline often leads to processing delays. During the final days of filing, the portal experiences heavy traffic, slowing verification and refund cycles. Filing early helps you avoid this rush and allows your return to be processed in the first batch, ensuring faster refunds without unnecessary waiting.
Waiting for Deadline Extensions
Relying on deadline extensions can cause significant delays in refunds. Many taxpayers wait for an announcement, hoping for an extended due date, but this results in a last-minute filing rush. The department processes earlier returns faster, so filing before deadlines helps your refund get prioritised and prevents delays caused by server load or backlog.
Submitting an Incomplete Return
An incomplete return, where important details such as income sources or deductions are missed, can lead to delays. The Income Tax Department may put such returns on hold for clarification. Always cross-check your income details, bank accounts, and deductions before submission to ensure your return is complete and ready for immediate processing.
Revising Your Return Frequently
If you revise your return after filing, the refund process restarts from the beginning. The revised return replaces the original one, meaning your earlier processing is cancelled. Frequent revisions also confuse the system and increase the waiting period. Always review all figures carefully before submission to avoid unnecessary corrections later.
Errors in Tax Calculation
Incorrect calculation of taxable income or TDS leads to delays and even notices. A single mistake in computation can make your return invalid for refund processing. Using online tax calculators or professional help ensures the accuracy of figures and prevents rejections or revision requirements. Always double-check your total tax paid and refund amount.
TDS Mismatch with Form 26AS
If the TDS you report does not match the details in Form 26AS or AIS, your refund will not be processed. The department relies on these forms to confirm the taxes deducted. Always cross-check your TDS certificates with Form 26AS before filing. This simple step prevents unnecessary scrutiny and ensures faster refund approval.
Entering Incorrect Bank Details
Providing incorrect bank details is a common but serious mistake. Refunds are transferred through the electronic clearing system directly to your registered bank account. A wrong account number or IFSC code results in failed transfers. Ensure your bank details are correct, active, and linked with your PAN before filing to receive your refund without issues.
Not Verifying ITR Online
Online verification is the fastest way to confirm your return. Those who prefer to send a physical copy of the ITR verification by post add unnecessary time to the process. E-verification through net banking or Aadhaar takes only a few minutes and speeds up processing, helping your refund reach your account faster.
Choosing the Wrong ITR Form
Selecting the incorrect ITR form can delay the entire refund process. Each form applies to specific income types, and using the wrong one leads to system rejections. Before filing, confirm which form applies to your income structure. For example, salaried individuals use ITR-1, while business owners or traders use ITR-3.
Ignoring or Delaying Response to Notices
When the Income Tax Department sends a notice seeking clarification, your refund will not move forward until you reply. Ignoring or delaying your response stops processing immediately. Always check your email and income tax portal regularly for updates, and respond within the given time to ensure smooth refund processing.
Making False or Inaccurate Claims
Claiming deductions or exemptions that are not genuine can slow down your refund. Such claims trigger additional checks by the department. Always ensure that your income and deductions are true and supported by valid documents. Honest and accurate filing prevents delays and keeps your return free from unwanted scrutiny.
Delay in Submitting Additional Documents
Sometimes, the department requests extra documents to confirm details in your return. Delaying submission adds more waiting time to the process. Keep all required papers, such as Form 16, investment proofs, and TDS certificates, ready. Submitting them quickly ensures the department can complete verification and release your refund on time.
Incorrect Disclosure of Tax Paid
If you pay additional tax and fail to mention it correctly in your return, the department will need time to verify it. This mismatch between reported and deposited tax details can hold up your refund. Double-check your challan numbers and tax payment details to make sure everything matches before filing.
Refund Adjusted Against Old Tax Demand
If you have pending taxes from previous years, the department may adjust your current refund against those dues. You will receive a notice before the adjustment. It is important to respond quickly and confirm whether you agree or have already paid. Ignoring it will delay the remaining refund further.
Tips to Ensure Faster Income Tax Refunds
File Your Return Early
Filing your return well before the deadline helps the department process it faster. Early filers are usually among the first to receive refunds since their data gets verified before the final rush. It also gives you time to correct errors or respond to notices if any issues arise later.
Verify Your Return Immediately
Once your return is submitted, complete the e-verification within 30 days. The department starts processing refunds only after this step. Online verification using Aadhaar OTP or net banking is quick and reliable. Doing this promptly ensures your return moves into the processing queue without any unnecessary delay.
Match Details with Form 26AS and AIS
Before filing, compare your TDS and income details with Form 26AS and the Annual Information Statement. This cross-check ensures that all deductions match the department’s records. Mismatches are one of the most common reasons for delayed refunds. Verifying these details early helps you fix discrepancies before filing.
Use the Correct ITR Form
Using the right ITR form ensures that your income details are categorised correctly. The department processes correct forms faster because they do not require manual verification. Always check your income sources and select the form that matches them. When unsure, consult a tax expert or use a reliable e-filing platform.
Respond Quickly to Notices
If the department requests clarification or supporting documents, respond immediately. Ignoring such notices pauses refund processing until a reply is received. A timely response not only speeds up the process but also builds trust with the tax authorities, showing your willingness to comply and cooperate.
How KoinX Helps You File Error-Free Returns?
Crypto transactions can make tax filing more complicated than regular income sources. Many investors struggle to track trades, match TDS records, and calculate exact gains across multiple platforms. These small mistakes can lead to refund delays or even audit notices. KoinX simplifies this process by helping you file accurate crypto tax returns with ease and full compliance.
Automatic Transaction Tracking
KoinX automatically imports your transaction data from over 800 exchanges and wallets. Every trade, swap, and transfer is recorded in real time, helping you avoid manual errors. This ensures that your crypto income and deductions are complete, accurate, and ready for filing.
Schedule VDA and ITR Form Accuracy
KoinX prepares detailed tax reports that comply with the Income Tax Department’s Schedule VDA format. It helps you choose the correct ITR form for your crypto activity, whether you are an investor or a regular trader. This ensures smooth reporting without rejection or mismatches during processing.
Accurate TDS Reconciliation
The platform cross-checks your TDS data with Form 26AS and AIS to ensure that all crypto-related deductions align with government records. This step helps prevent one of the most common refund delays caused by mismatched TDS details from exchanges.
Updated Return and Notice Support
If you missed reporting crypto income in previous years, KoinX helps you file an Updated Return to correct it. The platform also guides you in responding to crypto-related tax notices with accurate data, helping you avoid penalties and refund delays.
Audit-Ready Reports
All reports generated by KoinX are compliant with Indian tax rules. They include gain calculations, TDS summaries, and transaction logs that can be directly shared with your Chartered Accountant or tax professional, ensuring full transparency during audit reviews.
Start using KoinX today to simplify your crypto tax filing, eliminate refund delays, and stay fully compliant with Indian tax laws.
Conclusion
Timely and accurate filing is the key to receiving your income tax refund without delay. Even a small mistake, such as a mismatched TDS entry or an unverified return, can unnecessarily extend the waiting period. By filing early, checking your details carefully, and responding quickly to any notices, you can make the process smooth and stress-free.
For crypto investors, using a tool like KoinX makes compliance much easier. It automatically tracks every trade, calculates taxes, and prepares error-free reports that align with Indian tax laws. Get started with KoinX today to ensure accurate crypto filings, faster processing, and complete peace of mind during tax season.
Frequently Asked Questions
How Long Does It Usually Take To Receive An Income Tax Refund?
Once your ITR is filed and verified, refunds generally take four to five weeks to reach your bank account. However, this timeline may vary depending on factors like the accuracy of details, response to notices, and whether your return was filed early or closer to the deadline.
What Happens If I File My ITR After The Due Date?
If you file your return after the deadline, your refund will be processed later, and you may lose some interest that applies to timely filings. The Income Tax Department prioritises early submissions, so filing on time helps you get your refund faster without additional scrutiny.
Can I Revise My Return After Submitting It?
Yes, you can revise your return if you notice any mistakes after submission. However, once revised, the refund process restarts. The department will process the latest version, which means the final refund will take more time. Always review your data carefully before filing.
How Do I Know If My Refund Is Delayed?
You can check your refund status on the Income Tax Department’s e-filing portal using your PAN and assessment year. If your return is still under processing or pending verification, it means the refund has not yet been approved. Ensure there are no mismatches in your Form 26AS or bank details.
What Should I Do If My Refund Is Credited To The Wrong Bank Account?
If your refund is sent to an incorrect or inactive account, you can raise a reissue request on the income tax e-filing portal. Make sure to update your correct bank account details, including IFSC code, before submitting the request to ensure a smooth re-credit of your refund.
