Not received your income tax refund yet? Follow these steps

Recently, the Income tax department announced that pending income tax refunds up to Rs 5 lakh will be issued immediately to around 14 lakh taxpayers. The decision was taken due to the financial hardships faced by scores of taxpayers including individuals and MSMEs due to the coronavirus-related lockdown.

It has come to the notice of the Income Tax Department that certain sections were unable to receive their income tax refunds as there may be outstanding tax demand pending from the previous year(s).


As per a Central Board of Direct Taxes (CBDT) press release dated April 15, the department is awaiting responses to emails sent to 1.74 lakh taxpayers regarding reconciliation with their outstanding tax demand. Remainder emails have been sent to these taxpayers asking them to respond within seven days so that refund can be processed accordingly.



So, if you are someone who has to get an income tax refund but still haven't received it, then it is likely that the department is awaiting your response regarding the outstanding tax demand from the previous financial years that can be adjusted against the pending income tax refund.

An individual can view their outstanding tax demand by logging to their income tax department's account. Here's how an individual can login to view their outstanding tax demand.

Step 1: Login to your 'e-filing account' using your PAN as user ID and password.
Step 2: Once logged in, click on 'e-file' tab and select 'Response to outstanding tax demand'. The details of your outstanding tax demand will be shown on your computer screen.
Step 3: You are required to response to demand notice by clicking on 'submit' option as per the options shown to you.
Four options will be shown to you: (A) Demand is correct (B) Demand is partially incorrect; (C) Disagree with demand and (D) Demand is not correct but agree for adjustment.


Respond to the demand accordingly in order for the tax department to process your income tax refund, and credit it to your bank account, if pending after the adjustment.

As per the CBDT, taxpayers should respond to such emails at the earliest so that refunds can be processed and issued as soon as possible.