How to Fix a Failed Income Tax Refund and Get Your Money Back

Getting your Income Tax Refund should feel like a win but sometimes, it turns into a puzzle. You’ve filed your Income Tax Return (ITR), the Income Tax Department (ITD) has processed it, and the status says “Refund Credited” or “Refund Paid.” Then suddenly, you get a message: “Refund Failed” or “Refund Returned by Bank.”

Don’t worry! This just means your bank couldn’t accept the refund, so the money bounced back to the ITD. The good news? You can fix this online in just a few steps.

Step 1: Why Did Your Refund Fail?

Before you fix it, you need to know what went wrong. Here are the most common reasons:

• Bank Account Not Pre-Validated: Your refund can only go to a bank account that’s been verified on the Income Tax portal.
• Name Mismatch: The name on your PAN card and your bank account must match exactly. Even small spelling differences can cause issues.
• Wrong Account Details: A wrong account number, old IFSC code, or closed account can lead to rejection.
• PAN Not Linked to Bank Account: Your PAN must be linked to the bank account you chose for the refund.
• Restricted Refund Status: This usually means there’s a mismatch in your name or PAN details in the bank’s records.

Step 2: Fix Your Bank Details

Here’s how to correct the issue:

A. Log In and Check Your Bank Info

• Go to incometax.gov.in
• Log in using your PAN or Aadhaar and password.
• Click on ‘My Profile’ → ‘My Bank Account’
• Find the account that failed. It may show ‘Validation Failed’
• If details are wrong, click ‘Re-Validate’ and enter the correct info.
• If the account is closed, click ‘Remove’ and add a new one.

B. Pre-Validate the Correct Account

Once you’ve added or corrected your bank account, make sure it shows a green tick and says ‘Validated’. Only validated accounts can receive refunds.

Step 3: Request a Refund Reissue

Once your bank account is validated, follow these steps to get your refund reissued:

• Log in to incometax.gov.in
• Go to ‘Services’ → ‘Refund Reissue’
• Select the Assessment Year (AY) for which the refund failed.
• Click ‘Create Refund Reissue Request’
• Choose your Validated Bank Account
• Click ‘Proceed to Verification’ and verify using Aadhaar OTP or EVC.

You’ll see a success message once it’s done. The ITD will now send your refund to the updated bank account.

Step 4: When Will You Get the Money?

After submitting the reissue request, your refund is usually processed within 10 to 30 days. You can track the status:

• On the Income Tax portal under ‘Refund Reissue Request’
• Or on the TIN-NSDL website

Final Tip

If your refund has failed, don’t wait around. Fix your bank details and raise the reissue request right away. It’s quick, simple, and ensures your money reaches you without further delay.

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