Getting a tax refund can feel like a nice bonus after filing your income tax return (ITR). It’s the money the government owes you back if you’ve paid more taxes than you needed to. But sometimes, things don’t go as planned. Your refund might not land in your bank account even after weeks of waiting. That’s when you might need to ask for a refund reissue. This happens if the first attempt to send the refund fails for some reason.
In this guide, I’ll walk you through everything you need to know about requesting a refund reissue. We’ll cover why refunds fail, how to fix common problems, and step-by-step instructions on how to make the request online. I’ll also add some real-life examples to make it clearer. Think of this as your go-to resource if you’re dealing with a delayed or failed refund from the Income Tax Department in India. Normally, refunds take about 4 to 5 weeks to show up in your account after your ITR is processed. If it’s been longer, check your email or the tax portal for any messages from the department or the refund banker, like the State Bank of India (SBI). They might tell you the refund bounced back.
Let’s start with the basics. What exactly is an income tax refund? When you file your ITR, you calculate how much tax you owe based on your income, deductions, and exemptions. If you’ve paid extra through TDS (Tax Deducted at Source), advance tax, or self-assessment tax, the excess comes back as a refund. For the financial year 2024-25 (assessment year 2025-26), millions of people in India file ITRs, and many get refunds. But issues like bank details mismatches can stop the money from reaching you.
Imagine you’re a salaried employee in Mumbai. Your company deducts TDS from your salary every month. At the end of the year, you claim deductions for things like house rent allowance (HRA) or investments under Section 80C. If your total tax paid is Rs. 50,000 more than what you owe, you should get that back. But if your bank account isn’t set up right on the tax portal, the refund won’t go through. That’s where reissue comes in. You can request it easily online through the e-filing portal. No need to visit any office or send papers by post. It’s all digital now, thanks to the government’s push for online services.
Over the years, the Income Tax Department has made things simpler. Back in the early 2000s, refunds came by cheque in the mail, which could take months and often got lost. Now, it’s direct bank transfer, but that means your bank details must be spot on. If not, you’ll get an email saying the refund failed, and you can re-request it. This process is free, and you don’t lose any interest on the refund amount. The department adds interest at 0.5% per month if the delay is on their side, as per Section 244A of the Income Tax Act.
Why Does an Income Tax Refund Fail?
Refunds don’t always fail, but when they do, it’s usually because of small errors that are easy to fix. Let’s look at the common reasons in detail. Understanding these can help you avoid problems in the first place.
First, your bank account might not be pre-validated. From assessment year 2022-23, it’s mandatory to validate your bank account on the e-filing portal before you can get a refund. Pre-validation means the department checks if the account is active and linked to your PAN (Permanent Account Number). Without this, the refund can’t be processed. For example, suppose you switched jobs and opened a new salary account but forgot to update it on the portal. The old account might be dormant, leading to failure.
Second, there’s a mismatch between your name on the bank account and your PAN card. Banks are strict about KYC (Know Your Customer) rules. If your PAN says “Raj Kumar Singh” but your bank account has “Raj K Singh” because you used a shortened name, it won’t match. This is common with middle names or initials. Take Mrs. Priya Sharma’s case. Her PAN has her maiden name, but after marriage, her bank account uses her married name. She didn’t update her PAN, so the refund failed. To fix this, update your PAN details or ensure the bank name matches exactly.
Third, an invalid IFSC (Indian Financial System Code) code can cause issues. Banks merge or change branches, updating IFSC codes. If you have an old code, like from a bank that merged with another, the transfer bounces. For instance, if you had an account with Vijaya Bank, which merged with Bank of Baroda in 2019, your old IFSC won’t work anymore. Always check the latest IFSC on your bank’s website or app.
Fourth, the account you mentioned might be closed. Maybe you closed an old savings account after opening a new one, but the tax portal still has the old details. This happens a lot with students or young professionals who move cities and switch banks. If the department tries to deposit into a closed account, it fails automatically.
Fifth, your PAN isn’t linked to Aadhaar, or the bank account isn’t linked to PAN. The government made Aadhaar-PAN linking mandatory in 2017 to prevent fraud. If not linked, refunds can’t be issued. Also, ensure your bank has your PAN on record. Without it, the transaction gets rejected.
Other rare reasons include technical glitches on the bank’s side or if the refund amount is very small (under Rs. 100), but those are less common. In 2023, the Income Tax Department reported that about 10-15% of refunds fail initially due to these issues. But most get resolved with a reissue request.
To prevent failures, double-check your details when filing ITR. Use Form 26AS (your tax credit statement) to see if everything matches. If you’re unsure, consult a chartered accountant or use online tools like ClearTax to file accurately.
How to Pre-Validate Your Bank Account: A Step-by-Step Guide
Pre-validation is like a security check for your bank account. It ensures the department can safely transfer money to you. Here’s how to do it in detail. This step is crucial before requesting a reissue, as only validated accounts show up for refunds.
Start by logging into the Income Tax e-filing portal at www.incometax.gov.in. Use your PAN as the user ID and your password. If you forgot the password, click “Forgot Password” and reset it using Aadhaar OTP or other methods. Once logged in, you’ll see the dashboard. It’s the main page with options like “File ITR,” “View Returns,” and more.
From the dashboard, click on “Profile” in the top menu, then select “My Bank Account.” This page lists all bank accounts you’ve added. If none are there, click “Add Bank Account.” Enter details like account number, IFSC code, bank name, and account type (savings or current). Make sure the name matches your PAN exactly.
After adding, click “Validate.” The portal will send a request to your bank via NPCI (National Payments Corporation of India) for verification. This might take a few minutes to a day. You’ll get an email or SMS when it’s done. If successful, you’ll see a green tick next to the account with “Validated” written.
What if validation fails? Common reasons: Wrong account number, inactive account, or name mismatch. Fix the error and try again. For example, Mr. Amit Patel tried validating but failed because his account was joint with his wife. He had to add a sole account instead.
You can add multiple accounts, but choose one as primary for refunds. From AY 2023-24, e-verification using net banking is also an option for validation. This makes it faster. Always validate before the refund season (usually July to December) to avoid delays.
If you’re new to this, practice on a demo account or watch YouTube tutorials. It’s straightforward, but taking time here saves headaches later.
Step-by-Step: How to Make a Refund Reissue Request Online
Now, let’s get to the main part—requesting the reissue. This is simple if your bank is validated. Follow these steps carefully.
Step 1: Log in to the portal. Go to incometax.gov.in and enter your PAN and password. If you’re using Aadhaar, link it first for seamless login.
Step 2: Navigate to the request section. After login, click on “Services” in the top menu. Scroll down to “Refund Reissue.” It might be under “Other Services” in some versions. Select the assessment year (AY) for the failed refund. AY is the year after the financial year, like FY 2024-25 is AY 2025-26.
Step 3: View pending refunds. The page will show a list of refunds that failed for different AYs. Each one has details like amount, date of failure, and reason (if mentioned). Click the “Refund Re-issue” button on the relevant card.
Step 4: Create the request. Click “Create New Request.” You’ll see a form. Select the validated bank account from the dropdown. Only pre-validated ones appear here. If none show, go back to the profile section and validate one.
Step 5: Submit and verify. Review the details—amount, AY, bank info. Click “Submit.” You’ll get an OTP on your registered mobile or email for verification. Enter it to confirm.
A success message pops up, like “Your refund reissue request has been submitted successfully. Reference number: XXXXX.” Note this number for tracking.
Let’s look at an example. Suppose Ms. Neha Gupta filed ITR for AY 2024-25 and expected Rs. 20,000 refund. It failed due to wrong IFSC. She logs in, goes to Services > Refund Reissue, selects AY 2024-25, picks her validated HDFC account, submits, and gets confirmation. Within 2-3 weeks, the money is in her account.
Common mistakes: Choosing the wrong AY or not validating the bank first. If you have multiple failed refunds, request them one by one. No fee, and you can do it anytime, but sooner is better to get your money fast.
If you’re facing issues like portal downtime (rare but happens during peak times), try late at night or early morning. Also, keep your browser updated—Chrome or Firefox works best.
How to Check the Status of Your Refund Reissue Request
After submitting, you want to know what’s happening. Checking status is easy and helps you follow up if needed.
Step 1: Log in to the portal again.
Step 2: Go to “My Account” > “Service Request.” Select “Request Type” as “View Request” and “Request Category” as “Refund Reissue.”
Step 3: Click “Submit.” You’ll see a list of your requests with status like “Pending,” “Processed,” or “Rejected.” If processed, the refund should be on its way.
For example, if it’s pending for over a month, contact the helpline at 1800-103-0025 or email them. Status updates usually come via email too.
You can also check overall refund status under “My Account” > “Refund/Demand Status.” Enter PAN and AY to see if it’s issued.
Additional Tips for Smooth Refund Processing
To make sure your refunds don’t fail in the future, here are some extra tips. Always file ITR on time—by July 31 for non-audit cases. Late filing means no interest on refund. Use accurate forms: ITR-1 for simple salaries, ITR-2 for capital gains, etc.
Claim all deductions. For instance, under Section 80D, you can deduct up to Rs. 25,000 for health insurance. Keep records like Form 16 from employer.
If you’re a senior citizen, opt for the old tax regime if it benefits you more. And remember, refunds over Rs. 2 lakhs might trigger scrutiny, so be honest.
In case of large refunds, the department might ask for more docs. Respond quickly via the portal.
Frequently Asked Questions
What happens if I don’t verify my ITR within 30 days?
Your return is treated as not filed. You’ll face penalties under Section 234F—Rs. 5,000 for late filing—and might lose deductions. For example, if you uploaded ITR on July 1 but forgot to verify, it’s invalid after July 31. Verify using Aadhaar OTP, e-sign, or by sending physical ITR-V to CPC Bangalore.
How long does a reissued refund take?
Usually 2-4 weeks after request, but it can vary. If it’s delayed, check status or call helpline.
Can I request reissue for old AYs?
Yes, up to 7 years back, but check if the refund is still valid. Old refunds might be adjusted against demands.
What if my bank account is with a foreign bank?
For NRIs, use an Indian bank account. Foreign accounts need special approval.
Is there a limit on refund amount for reissue?
No, but large amounts (> Rs. 50 lakhs) go through RTGS, smaller via NEFT.
My refund failed due to Aadhaar not linked. What now?
Link Aadhaar to PAN on the portal, then re-validate bank and request reissue.
Can I change bank account after failure?
Yes, add and validate a new one, then select it in the reissue request.
What if I get a defective return notice?
Fix it within 15 days, or your ITR is invalid, and refund stops.
How do I know if refund is credited?
Check bank statement or get SMS from bank. Also, portal shows “Refund Issued.”
If refund is less than expected?
It might be adjusted for old dues. Check intimation under Section 143(1).
These FAQs cover common doubts. If yours isn’t here, search the portal’s help section or consult a tax expert.
In conclusion, requesting a refund reissue is straightforward if you follow the steps. With digital tools, it’s faster than ever. Stay updated on tax rules, and you’ll handle refunds like a pro. If you need help filing ITR, platforms like ClearTax offer guided services. Remember, taxes are part of life—handle them wisely!
