It is very important to understand when the incometax Refund is received and when it is not received ? To understand the story of ‘ incometax refund not received ‘, one should understand following circumstances and stages :-
1. Incometax Refund is determined only when an assessee (Incometax Payer) has deposited incometax (including TDS and TCS) more than his tax liability.
2. Assessee has filed required return of income and in his return of Income ( ITR ), assessee has claimed for refund.
3. Assessee’s tax credits are matching with Form 26As (An online statement of Tax Credits issued / published by TRACES).
4. After filing the return of income, assessee’s ITR-V (Receipt of ITR Filed) has been reached to CPC, Banglore if ITR has not signed digitally or data of assessee has not been verified with Aadhaar database.
5. After generating the Acknowledgement of ITR, an online intimation u/s 143(1) of the Incometax Act, 1961 will be generated and refund has been determined in that intimation.
6. After creating / determining the refund for any particular assessment year, there is no outstanding demand against the assessee relating to any earlier assessment year.
7. If there is any old outstanding demand, refund may be held-up u/s 245 for adjustment against the old demand but subject to notice and opportunity to such assessee.
Therefore, a refund may not be issued or held-up in above mentioned circumstances for which assessee should be alert for taking remedial actions for getting the refund.