Many taxpayers in India are experiencing delays in income tax refunds, especially when the refund amount falls between ₹50,000 and ₹1 lakh. If you’ve filed your Income Tax Return (ITR) on time and are still waiting, you’re not alone. Here’s a clear breakdown of why such refunds are delayed and what practical steps you can take to speed things up.
Why Refunds Between ₹50,000 and ₹1 Lakh Are Delayed
Refunds in this range often attract additional scrutiny from the Income Tax Department to prevent errors and fraud. Below are the most common reasons:
1. Enhanced Verification for Higher Refunds
Refunds above ₹50,000 are usually manually reviewed or system-flagged to cross-check income, TDS, and deductions.
2. Mismatch in TDS or Income Details
If your Form 26AS or AIS does not perfectly match your ITR—even by a small amount—refund processing can pause.
3. Pending Aadhaar–PAN or Bank Verification
- Aadhaar not linked with PAN
- Bank account not validated for ECS refunds
These are mandatory checks before any refund is released.
4. Return Selected for Scrutiny or Defective Filing
Sometimes, the ITR is marked as:
- Defective (Section 139(9))
- Selected for limited scrutiny
Until clarification or correction is provided, refunds remain on hold.
5. High Deduction Claims
Claims under sections like 80C, 80D, HRA, or 80G that are unusually high compared to income may trigger verification.
What You Can Do to Get Your Refund Faster
Here are actionable steps you should take immediately:
✅ 1. Check Your Refund Status Online
Log in to the income tax e-filing portal and check:
- Refund status
- Intimation under Section 143(1)
✅ 2. Match ITR with Form 26AS & AIS
Ensure:
- TDS amounts match exactly
- All income sources are disclosed
If not, file a revised return.
✅ 3. Verify Bank Account & Aadhaar
- Confirm your bank account is pre-validated
- Ensure Aadhaar–PAN linking is complete
✅ 4. Respond to Any Notice Promptly
If you receive an email/SMS notice:
- Respond within the deadline
- Upload supporting documents clearly
✅ 5. Raise a Refund Grievance
If the refund is delayed beyond a reasonable time:
- File a grievance under “Refund Issues” on the e-filing portal
- Track it regularly
How Long Does It Usually Take?
- Normal cases: 15–45 days after ITR processing
- Scrutiny / mismatch cases: 2–6 months (sometimes longer)
Will You Get Interest on Delayed Refunds?
Yes. Under Section 244A, the Income Tax Department pays interest @ 0.5% per month on delayed refunds (subject to conditions).
Key Takeaway
Refunds between ₹50,000 and ₹1 lakh are often delayed due to extra verification, not rejection. Most delays can be resolved quickly by:
- Verifying details
- Responding to notices
- Raising a grievance if needed
Patience, along with timely action, usually solves the issue.
Disclaimer
This article is for informational purposes only and does not constitute tax or legal advice. Tax laws are subject to change. Readers are advised to consult a qualified tax professional before taking any action.
