The income tax department, on June 4, 2024, reminded taxpayers that income tax refunds will only be credited to validated bank accounts. As such, taxpayers may need to verify the status of their bank accounts on the Income tax department’s e-filing portal at the time of filing their income tax returns (ITRs).
“Kind Attention Taxpayers! Having a validated bank account is essential for receiving of refunds,” the income tax department wrote on X (formerly Twitter).
This reminder is due to the fact that “An already validated bank account will require re-validation after updation of account details consequent to change in branch, IFSC, Merger of bank, etc,” the message added.
The income tax department also listed the steps taxpayers should follow in order to update their existing bank account.
Visit the income tax portal.
Log in to your account.
Navigate to the “Profile” section.
Choose “My Bank Account”.
Click on “Revalidate”.
Update Bank Account Details, such as a/c No., IFSC, a/c and choose ‘Validate’.
For Adding a new bank a/c from ‘my bank’ account option choose ‘Add Bank Account’ and then Validate.
Issues With Income Tax Refunds
Taxpayers mostly encounter challenges with missed tax refunds, often due to giving incorrect bank details while filing their ITRs. The refunds will also not be processed in case of an inoperative bank account, or if the account has been closed, or in case of an invalid IFSC.
A taxpayer must have a valid Permanent Account Number (PAN) registered with an e-filing portal and an active bank account linked to the PAN for pre-validating the bank account, which in turn enables the electronic verification code (EVC) for e-verification purposes.
Prompt updates of personal details, including address, email, and phone number, and regularly checking your e-filing portal accounts for any updates regarding refunds is necessary to avoid any refund issues.
If you have filed your ITR offline, refunds are dispatched through cheques to the address mentioned in the ITR through speed post and if they are not presented for payment within 90 days, they get expired. Such taxpayers should contact their jurisdictional Assessing Officer (AO), who might ask you for an indemnity bond. Once the bank details are verified, the refund will be issued again through a bank transfer, instead of a physical cheque.
