Possible Reasons for Your Rejection of Income Tax Refund

Reasons for Your Rejection of Income Tax Refund

You may be waiting for a tax refund but you are disappointed because your refund wasn’t processed. Though many returns are processed within a month’s time, simple errors can delay your refunds. With the introduction of e-filing of income tax returns, tax filing process has sped up and now refunds are processed even sooner. Errors that lead to income tax refund failure are many, however, they are avoidable.

Here are common reasons for income tax refund failure.

1. Payment of student loan:

If your student loan hasn’t been returned on time, the income tax department will work with the company to extract back the loan amount from you. Thus, if loan is yet to be paid, your tax refund will be deducted. You can avoid this by paying your student loan on time.

 2. Filing a return that is incomplete:

If you have filed an incomplete form, your income tax return will not be processed. Unfilled details are the most common reason of failed returns.

3. Errors in computation:

Computation errors on your part because of the complicated tax structure can result in failed returns. Complications such as exceptions, tax withheld, income credit etc. can delay your returns.

4. Late filing of returns:

Most taxpayers take filing of forms leniently and file their returns at the last minute. This problem is more common with paper refunds when most taxpayers file their returns. Filing early can also delay returns because sometimes, rules are changed at the last moment due to update in tax software. File income tax refund during the third or fourth week of the year to receive it on time. Receive your refund on time by e-filing the forms correctly and requesting a direct deposit of refund amount.

5. Owing taxes:

If you owe any taxes of previous years, you may not receive desired tax refunds. The income tax department will pay back those debts by working with other departments. The department may also attach an additional fees to your status, meaning you will have to pay extra amount. If you don’t make your payments on time, the department will inform you about it.

6. Expired refund cheque:

Your refund will be rejected if your refund cheque has been expired. You can re apply for a refund reissue to get your refund. This can be done online via the official e-filing website.

7. The refund cheque was returned:

The refund cheque was returned as either the house was locked or the concerned party was not available at the address mentioned. You have to update your address online and reissue a refund.

8. Other reasons:

Other common reasons for which your income tax refund will be delayed or cancelled are wrong MICR code, providing an account number that was closed, incorrect account description, invalid account number, invalid IFSC code etc. This can also be corrected by submitting precise details online.

9. Paper returns:

Filing paper returns may take longer even if all the information you provided was correct. The IRS processes online returns faster than offline returns. Thus, if online process took three weeks to deliver a return, offline process will take as much as six weeks.


  1. Great list !Interestingly enough, i saw this blog and though i read with much anxiety.
    This is the blog that i needed and i have been searching from a very long time now
    but today finally i found it and that to even in such an easy language which was really easy for me to understand and very easy to learn from it.Through this i came to know about the common reasons for income tax refund failure.
    It genuinely helped me a lot .
    and the most interesting fact is that none of the tax or investment blogs or websites provide such details in neat and aligned manner .It’s really great that u take initiative to tell people about this and your way of representation of thought is really good.

  2. Amazing this blog has really helped me alot. This really helps and tells a process that is required to fill up an Income tax return. This blog tell us step by step how we should fill taxes and yes it is also easy to understand. Each and every details have been mentioned in simple and clear language.
    i would prefer anyone to have a eye on it to clear all their doubts. The best thing about this blog is that we can get every information hear only. we shoud not go on different side to search about itr. Great work keep it up.It tell breifly and accurately about taxes. The blog is very detailed and the way it explains the things is very easy to understand and to retain it really helps a person on how to fill up the ITR and how to enquire about it. Great work from ALL INDIA ITR since it is a very well written and a very useful blog.

  3. This is veri effectice article that expaining very well about the rejection that manmy times happen through the taxpaye’s but after reading this whole article anyone c an easily dave himself from this kind of rejection to remember the tips like- Paper returns, The refund cheque was returned, Expired refund cheque, Late filing of returns, thanks really its help me alot.


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