Taxpayers across the country have started receiving emails and SMS alerts from the Income Tax Department notifying them that their refunds are being held because of discrepancies in their income-tax return (ITR) filings. Many affected taxpayers are now seeking clarity and pressing for extra time to correct their returns before the 31 December deadline.
What the notices typically say
The department’s messages generally inform taxpayers that their refund processing is on hold pending resolution of mismatches or missing information in the filed ITR. Notices can be brief and may not always explain the exact nature of the discrepancy, leaving taxpayers unsure whether they need to revise the return, submit supporting documents, or simply wait for an adjustment.
Common reasons refunds are held
- Mismatch in TDS details: Tax deducted by employers or other payers may not match the TDS reported in the return or the tax credit statement.
- Unreported income: Interest, capital gains, or other income reported by third parties may not have been declared in the return.
- Incorrect bank details: Errors in account or IFSC information can delay refund transfers.
- Mathematical or arithmetic mistakes: Calculation errors or discrepancies in tax computation can trigger hold-ups.
- Incomplete or inconsistent employer information: Details in Form 16 or employer TDS records not matching the return.
- Data mismatch with government information systems: Annual information statements or other sources may show different values.
Practical steps to take immediately
Act quickly but calmly. Here’s a step-by-step approach to handle the situation:
- Read the notice closely: Check email and SMS for any reference number or short explanation. Save screenshots and copies of the messages.
- Log in to your tax account: Check the e-filing portal or the account where you normally file ITR to view the detailed intimation or mismatch message.
- Verify TDS and income statements: Reconcile your return with Form 26AS or the Annual Information Statement to spot differences in TDS, refunds, or third-party reported income.
- Decide on the correction route: Depending on the notice, you may need to file a revised return, submit a rectification request, or respond to an intimation. Choose the option that matches the notice instructions.
- File corrections before the deadline: If a 31 December deadline applies, aim to complete corrections well before that date to avoid last-minute issues.
Documents to keep ready
- Payslips and Form 16 from employers
- Form 26AS or the Annual Information Statement showing TDS and other credits
- Bank statements showing interest and refund transactions
- Sale/purchase records for capital gains
- Any prior communications from the tax department
What happens after you correct the return
Once discrepancies are addressed and the department accepts the correction, refund processing typically resumes. The actual timeline for refund release varies and depends on system processing and any further verification the department may need. Keep copies of all submissions and follow up if the refund does not show up within the usual processing window.
When to seek professional help
If the discrepancy looks complex — for example, involving large unreported income, multiple years, or contested TDS claims — consult a tax professional or chartered accountant. They can help reconcile records, prepare revised returns or rectification requests, and communicate with tax authorities on your behalf.
Contacting the tax department and asking for relief
Taxpayers who need extra time or clearer explanations can raise grievances through the department’s help channels or customer service. When requesting extensions or clarifications, provide clear documentation and the notice reference. Many taxpayers are asking for more time to correct filings before 31 December; official responses may vary, but documented, polite requests improve the chances of a favorable outcome.
Bottom line: Don’t ignore the notice. Verify the mismatch, gather supporting documents, and take prompt corrective action. If the situation is unclear or complicated, get professional help and keep records of every step you take. Acting early gives you the best chance of resolving the issue before the year-end deadline.