Refund Delay: Received Notice From Income Tax Department?
Waiting for your income tax refund and suddenly receiving a notice from the Income Tax Department can be stressful. Many taxpayers in India are currently facing this situation-returns are filed on time, yet refunds are stuck, and a message or email from the department lands in the inbox.
But don’t panic. In most cases, this notice is not a penalty or legal action. It is simply a request for clarification or correction. Understanding why the notice was sent and how to respond can help you unlock your refund quickly.
Here’s everything you need to know.
Why Is the Income Tax Department Sending These Notices?
The Centralised Processing Centre (CPC) in Bengaluru processes millions of Income Tax Returns (ITRs) every year. Refunds are issued only after your return is verified and matched with data available to the department.
If there is any mismatch or missing detail, the system automatically flags your return. That’s when a notice is generated.
Common triggers include:
- Mismatch between ITR and Form 26AS
- Difference between income shown in ITR and AIS (Annual Information Statement)
- Bank account not pre-validated
- PAN not linked with Aadhaar
- ITR not e-verified
- Incorrect TDS details
- Claiming deductions without proper backing
In such cases, the department pauses your refund and asks you to respond.
What Does the Notice Usually Say?
Most refund-related notices fall under:
- Section 143(1) – Intimation after processing
- Defective Return Notice under Section 139(9)
- Request to respond to mismatch in income or TDS
The notice may say:
- “Your return is defective”
- “Mismatch between income reported and records available”
- “Refund cannot be issued due to pending verification”
It will also mention a deadline-usually 15 to 30 days-to respond online.
Step-by-Step: What You Should Do
If you have received a refund delay notice, follow these steps carefully:
- Log in to the Income Tax Portal
Visit: https://www.incometax.gov.in
Use your PAN and password. - Check the Notice
Go to:
e-Proceedings -> View Notices
Open the notice and read it fully. - Understand the Issue
The notice will clearly state what is wrong-missing income, mismatch, or verification issue. - Compare With Your Records
Check:- Form 26AS
- AIS
- Bank statements
- Salary slips or interest certificates
- Submit Your Response Online
Use the “Submit Response” option on the portal.
You may need to:- Accept the mismatch
- Revise your return
- Upload supporting documents
- E-Verify if Pending
Many refunds are stuck simply because the ITR was never e-verified.
Once your response is submitted, the CPC reviews it and resumes processing.
How Long Will the Refund Take After Response?
After you respond correctly:
- Processing usually resumes within 2 to 4 weeks
- Refund is credited directly to your bank account
- Status can be tracked under “ITR Status” on the portal
In peak seasons, it may take slightly longer, but most refunds are cleared once discrepancies are resolved.
What Happens If You Ignore the Notice?
Ignoring a notice can lead to:
- Your return being treated as invalid
- Refund getting permanently blocked
- Possible tax demand raised
- Future scrutiny risk
Even if you believe your return is correct, always respond. Silence can cost you your own money.
Tips to Avoid Refund Delays in Future
- Always match your ITR with Form 26AS and AIS
- Pre-validate your bank account on the portal
- Ensure PAN is linked with Aadhaar
- E-verify your return immediately after filing
- Avoid rounding errors in income and TDS
- Keep all income sources-FD interest, dividends, freelance income-reported
A little care while filing can save months of waiting.
The Bottom Line
Receiving an income tax notice due to refund delay is not a red flag-it’s a correction step. The department simply wants your data to align with its records before releasing your money.
Responding on time and accurately is the key. Once the issue is fixed, your refund is usually processed without further trouble.
So, if that notice has been sitting unread in your inbox, don’t delay. Log in, respond, and get your hard-earned money back.
