ITR Refund Blocked? 5 Reasons You Get a Notice

Filing your ITR doesn't guarantee a quick refund. The tax department cross-checks your return with multiple sources, and even small mismatches can trigger a notice that freezes your refund until resolved.

Here's what happened: The Income Tax Department verifies every ITR against Form 26AS, AIS, and third-party data from banks, registrars, and mutual funds before releasing any refund.. Mismatches in reported income, incorrect ITR form selection, or unsubstantiated deduction claims are the most common triggers for scrutiny notices.. Taxpayers who receive a notice under Section 143(1) or 143(2) must respond within the specified deadline or risk their refund being withheld or adjusted..

What you should do: Download your Annual Information Statement (AIS) from incometax.gov.in before filing and match every income entry — salary, interest, dividends, capital gains — with what you plan to declare.. Cross-check your Form 26AS against your Form 16 and bank interest certificates to ensure TDS credit amounts match exactly before submitting your return.. If you receive a notice, respond through the compliance portal within the stipulated time with supporting documents — ignoring it can result in your refund being permanently adjusted against a deemed demand..

Even savings account interest above ₹10,000 must be declared under 'Income from Other Sources' — many salaried filers skip this, and banks report it directly to the tax department.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.