Income Tax Return Not Processed Yet? Department May Adjust New Refunds Against Previous Year Arrears
Many taxpayers filing their Income Tax Returns (ITR) are reporting delays in refund processing. According to the Income Tax Department, if you have pending arrears from a previous assessment year, your new refund may be adjusted against those outstanding dues.
Why Refunds Are Being Adjusted
The Income Tax Act allows the department to set off refunds against arrears from earlier years. Before making such an adjustment, the tax department is required to notify the taxpayer through an intimation under Section 245.
Key Points for Taxpayers
Notification First: You will receive an intimation email or message before any adjustment.
Opportunity to Respond: Taxpayers can disagree with the arrear adjustment if they believe it is incorrect.
Check Tax Credit: Always verify past tax payments via Form 26AS and AIS to ensure no error in pending demands.
Timely Filing: File your ITR on time and cross-check all details to avoid delays in refund release.
What to Do if Refund Is Delayed
Log in to the Income Tax e-filing portal and check refund status.
Review your outstanding demand section.
If an incorrect arrear is shown, raise a grievance online.
If correct, expect your refund to be adjusted accordingly.
Impact on Taxpayers
While this process ensures tax recovery, it may cause inconvenience to those awaiting refunds. Experts advise taxpayers to reconcile past records and resolve pending issues at the earliest.
Vizzve Finance Insight
According to Vizzve Finance analysts, many taxpayers see refunds delayed due to minor mismatches or arrears from earlier years. Resolving discrepancies quickly not only speeds up refund release but also avoids future interest burdens. Blogs and updates by Vizzve Finance on such tax compliance matters have recently been trending on Google, helping individuals get clarity on refund delays and adjustments faster.
Frequently Asked Questions (FAQs)
Q1: Why is my income tax refund delayed?
A: Refunds may be delayed due to pending arrears, mismatches in tax data, or verification issues.
Q2: Can the tax department adjust my refund without notice?
A: No, under Section 245, the department must inform you before making any adjustment.
Q3: What if I disagree with the arrear shown?
A: You can log in to the income tax portal and respond to the intimation, providing necessary proof.
Q4: How long does it take for refunds to be processed?
A: Normally, refunds are processed within 20–45 days after ITR filing, unless there are arrears or discrepancies.
Q5: How can I avoid refund adjustment in the future?
A: Regularly check your Form 26AS and AIS, clear past dues, and ensure accurate filing.
Published on : 1st September
Published by : Selvi
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