Understanding Delays in ITR Processing: Common Reasons and What to Do
Individual taxpayers often wonder why their Income Tax Returns (ITR) are not processed even after filing and e-verifying them. This article aims to demystify common reasons for such delays and provide guidance on what actions can be taken to resolve the issue.
Reasons for Delays in ITR Processing
When an individual files their ITR and e-verifies it on the specified dates, the tax processing system typically begins its verification process automatically. However, several factors can contribute to delays in the processing of ITRs:
Previous Year Losses: If you have brought forward any previous year losses and adjusted them against the income of the current year, this could lead to a more thorough verification process, thereby causing delays. Manual Verification: When the return is processed manually, especially when detailed exemptions and deductions are claimed, the department may take longer to ensure accuracy. Computation of Refunds: If there is a demand for payment in any assessment year, the refund for the current year will first be adjusted. After this adjustment, any surplus amount may be processed as a refund. Dependent on Registration Period: For ITRs filed on a specific registration period, like those filed from June 20 onwards with a refund exceeding Rs 40000, delays may be experienced due to system updates or processing backlogs.What Happens if Your ITR is Not Processed?
Upon submission and e-verification, there are certain notifications and actions that the Income Tax department takes:
Discrepancy Notification: If any discrepancy is found, the department will notify you via email and instruct you on how to rectify the issue. Intimation U/s 1431: Once the ITR is successfully verified, the Intimation under Section 143(1) of the Income Tax Act, 1961, serving as an Assessment Order, will be sent to your email address. Time Limits: Section 143(1) of the Income Tax Act provides for a one-year period from the end of the relevant financial year to issue intimation under Section 143(1). However, this period is often significantly shorter in practice.Steps to Take if Your ITR is Not Processed
Check Submission: Ensure that your ITR was submitted and accepted by the website. Visit the official Income Tax website to verify the submission status. Provide Necessary Information: If you believe your tax return is correct and have provided all the necessary information, proceed to recheck the details to ensure no errors are present. Email or Call for Assistance: If you continue to face issues, reach out to the Income Tax helpline or contact your local tax office for further assistance. Wait Patiently: Some delays may be system-related or due to the processing of a large volume of returns. Stay patient and await notification if any discrepancies are found.Conclusion
Understanding the reasons behind delays in ITR processing can alleviate some of the anxiety and frustration faced by taxpayers. By taking appropriate steps and staying informed, you can ensure that your ITR is submitted accurately and processed without undue delay.
The information provided here is intended to guide taxpayers and is based on general practices. Always refer to the official Income Tax website or seek professional advice for specific concerns.