As the tax season for the Assessment Year 2024-25 comes to an end, many taxpayers who filed their Income Tax Returns (ITRs) before the deadline of July 31, 2024, are still waiting for their refunds.

Despite submitting their returns on time, the delay in receiving refunds has caused concern among taxpayers across the country.

More than 7 crore ITRs were filed by the deadline, but as of August 23, 2024, the Income Tax Department has processed only 5.34 crore of these returns.

This leaves over 2 crore verified ITRs still unprocessed. One of the main reasons behind this delay is the increase in ‘Defective ITR’ notices issued by the tax department this year.

What is a defective ITR?

A defective ITR is one that has errors, incomplete details, or inconsistencies in the information provided.

These issues prevent the Income Tax Department from processing the return correctly. If your ITR is flagged as defective, you will receive a notice under Section 139(9) of the Income Tax Act. This notice is sent to your registered email or by post, and it can also be viewed on the e-filing portal.

How to respond to a defective ITR notice

If you receive a defective ITR notice, you have two options: either file a fresh return or revise the existing one, provided there is still time within the assessment year.

Alternatively, you can respond directly to the notice under Section 139(9). It's important to act quickly because if you miss the deadline, your ITR might be treated as invalid or not filed for the assessment year 2024-25.

Deadline to rectify defective ITR

Upon receiving a defective ITR notice, you are given 15 days from the date of the notice to rectify the problem. This timeframe is often specified in the notice itself. If you need more time, you can request an extension by asking for an adjournment.

Addressing defective ITRs promptly is crucial to avoid further delays in receiving your tax refund. Regularly checking your registered email and the e-filing portal is advisable to ensure you don't miss any important notices from the Income Tax Department.

How to check ITR refund status

Tracking the status of your income tax refund is simple and can be done online through the Income Tax Department's official website. Here’s how you can check your refund status:

• Visit the e-filing website of the Income Tax Department.
• Log in using your PAN credentials.
• Navigate to the ‘My Account’ section on the homepage.
• Click on the “Refund/Demand Status” option.

The status of your income tax refund will be displayed, including details such as the assessment year, the current status, any reasons for refund failure, and the payment method.

The delay in processing ITRs and issuing refunds is a significant issue this year, mainly due to the increased number of defective ITR notices. By understanding the reasons behind these delays and promptly addressing any issues with your return, you can help ensure a smoother and faster refund process.