It's that time of the year again when millions of taxpayers wait for their Income Tax refunds to hit their bank accounts. But if your refund is taking longer than expected, chances are the problem isn’t with the system—it could be a small mistake made while filing your return.
Last year, over 7 crore people filed ITRs, but nearly 2 crore taxpayers received notices for errors. And here’s the surprising part: most of these mistakes weren’t about hiding income, but about simple oversights that could’ve been avoided.
So, what are the top slip-ups that stall refunds? Tax experts point to three common ones:
Think filing your ITR is enough? Not really. The process isn’t complete until you e-verify your return within 30 days. Skip this step, and your return becomes invalid—your refund gets blocked automatically. In some cases, you may even face a penalty of up to ₹5,000.
Your Annual Information Statement (AIS) is like a report card that tracks income, bank deposits, investments, and TDS. If what you declare in your ITR doesn’t match with AIS records—say, unreported dividend income or a TDS mismatch—the system immediately raises a red flag. Cross-checking this before filing can save a lot of headache later.
It’s tempting to pick the simplest form, like ITR-1, but it’s not for everyone. If you have business income, foreign income, or capital gains, choosing the wrong form will almost certainly get your return rejected. One Mumbai taxpayer learned this the hard way when he under-reported his income and ended up paying a ₹1.46 lakh penalty.
Beyond just refunds, filing ITR accurately builds your financial credibility. It helps when you apply for loans, keeps your tax history clean, and saves you from unnecessary notices. Think of it as an investment in your financial peace of mind.
Most refund delays happen not because of big issues, but small avoidable mistakes. Take a few extra minutes to double-check your details, finish e-verification, and use the correct form. A little caution now means a faster refund—and far fewer sleepless nights later.
