Refund Reissue Request: Here’s What Taxpayers Can Do If Income Tax Refund Fails

As tax-filing season has picked up, some taxpayers may find that while their return is processed, their income tax refund doesn’t reach them. The most common reason? An issue with bank account validation. To help taxpayers resolve this, the Income Tax Department has put out a clear set of instructions on what to do if your refund fails. Here is a quick, real-world guide to understanding the process and how to fix it.

First Things First: Why Refunds Fail

If you have filed your return and it has been processed, but the refund still has not landed in your bank account, it likely has something to do with the bank details you have provided on the income tax portal.

The tax department has been putting out reminders across its social media channels: your bank account must be validated on the e-filing portal to receive any refund. This validation is not a one-time thing, if you have recently changed your account number, IFSC, or even your account type, you will need to update and re-validate it.

Now, let’s understand how you can fix this issue in a step-by-step guide.

Step 1: First, you will need to check your bank account details, particularly its ‘status’

For this, log in to the income tax e-filing portal and go to ‘Profile’ where you will see a bank account option. Here you will be able to see the status next to your account:

If it says ‘not validated’ or ‘validation failed’ - that is your cue to act.

Step 2: If your bank details are not updated, step 2 is to add or update your banking information.

If the existing account needs some changes, go to the ‘Profile’ section - bank account option and select the account. Here, you can update the details like the account number and IFSC code or type them in. Once done, click ‘Validate’.

If you have to add a new account altogether, go to the same section and click on ‘Add Bank Account’, enter your new account details here and validate it.

The validation is supposed to happen quickly, but it may also take longer in some cases, depending on your bank.

Step 3: Submit a ‘Refund Reissue Request’

Once your account is validated or re-validated, there is one more thing you must do and that is to submit a ‘Refund Reissue Request’.

Here’s how you can do it:

• Go to ‘Services’ section and click on ‘Refund Reissue’

• Choose the relevant assessment year

• Select the validated bank account

Next, you will be asked to verify the request using one of these:

• Aadhaar OTP

• EVC (Electronic Verification Code)

• DSC (Digital Signature Certificate), if you use one

Without this final step, the refund will not be re-processed, even if your bank account is fixed.

One Small Fix, But Easy To Miss

Surprisingly, it is easy to overlook the validation step while filing. In many cases, the account might have worked fine last year but failed this time because of an update in your bank details or a mismatch that was not flagged earlier.

If you are still waiting on your refund, it’s worth logging in and checking, even if your return shows as ‘processed’.