Income Tax Department under its reminder campaign, sent email to around 1.74 Lakhs Taxpayers on 14/04/2020 with the Subject line regarding “Claim of Refund in your Income Tax Return for AY <Assessment Year> – <PAN> “. The said email states that “Your Income Tax Return has been selected under risk management process wherein your confirmation is required on the claim of refund. You are requested to submit your response in the e-Filing Portal post login by selecting either of the given two options.” Every Taxpayer who has received such email from Income Tax Department is now looking for reason of selection of Income Tax Return by Risk Management Process and how to resolve the matter.  In case your Income Tax Refund is also pending & you have not checked your email yet or the latest email ID is not updated in the E-filing Portal, you should also check the same at the earliest from E-filing Portal.

Confused about the questions relating to Risk Management Process??

Many questions come to the mind of Taxpayers like:- What is the Risk Management Process of Income Tax Department? Why my Income Tax Refund not received till date? Why Income Tax Refund has been put on hold? What can be probable reason of selection of my ITR under such Risk Management Process? What documents Income Tax Department will verify? Which option I need to select out of given two options in the email? Ministry of finance has already asked to department to expeditiously release the refunds upto 5 Lakhs. Why Tax Department is sending such emails even when entire country is under Lockdown due to outbreak of Corona Virus? You may be also facing any of such question/s and looking of definite answer/s. Let us understand what the matter all about is!!

Press Release about clearance of Pending Refunds upto Rs.5 Lakhs

On 8th of April, 2020 Ministry of Finance with a view to provide certain relief to Taxpayers of the country, issued the Press Release “In the context of the COVID-19 situation and with a view to provide immediate relief to the business entities and individuals, it has been decided to issue all the pending income-tax refunds up to Rs. 5 lakh immediately. This would benefit around 14 lakh taxpayers”

Email from IT Department about Submission of Response relating to IT Refund

However, on 14th of April, 2020 few taxpayers received following email from Income Tax Department with the Subject line regarding “Claim of Refund in your Income Tax Return for AY <Assessment Year> – <PAN> “

“ Dear Taxpayer, It is seen that a claim of refund has been made in the Income Tax Return xxxxxxxxxxxxxxxxx (e-filing acknowledgement number) @ for 20YY (A.Y.) filed by you on DD-MMM-YYYY.(Date of Filing of ITR). Your Income Tax Return has been selected under risk management process wherein your confirmation is required on the claim of refund. You are requested to submit your response in the e-Filing Portal post login by selecting either of the following options:

1. The claim of refund is correct to the best of my knowledge and belief.

2. Return of Income is being revised wherein, correct claim of refund shall be made.

To submit the above mentioned response, please login to e-Filing portal, Go to Worklist->For Your Action-> Response for Refund Confirmation. Please verify the claims made in your Return of Income filed and submit your response accordingly.

In case of any incorrect claims, please revise your Income Tax Return (ITR). Please submit your response within 30 days of receipt of this e-mail. “

Clarification from CBDT regarding email for pending Income Tax Refunds

Thereafter, Immediately CBDT by Press Release on 15/04/2020, clarified the matter of such emails to Taxpayers as follows:-

“In pursuance to the Government’s decision vide Press Note on 8th April 2020 to issue pending Income Tax Refunds up to Rs 5 lakh in order to help taxpayers in a COVID-19 pandemic situations, the Central Board of Direct taxes (CBDT) today said that it has already issued over 10.2 lakh refunds totaling to around Rs. 4,250 crore as on 14 April 2020. These refunds are over and above the 2.50 crore refunds already issued in FY 19-20 till 31 March 2020 totaling Rs 1.84 lakh crore.

The CBDT further said that about 1.75 lakh more refunds are in the process of issuance in this week. These refunds would get credited directly to the taxpayer bank account in 5-7 business days from issuance. However, in around 1.74 lakh cases, email responses are awaited from taxpayers regarding reconciliation with their outstanding tax demand for which a reminder email has been sent asking them to respond within 7 days so that the refund can be processed accordingly.

It may be noted that these reminder emails from I-T department are in fact for the benefit of taxpayers as it seeks them to confirm their outstanding demand, their bank accounts and reconciliation of defect/mismatch prior to issue of refund.

The CBDT appealed that it is in the interest of taxpayers to provide a response to such emails at the earliest so that refunds could be processed and issued at the earliest. CBDT has requested taxpayers to check their email and login to their e-filing account to respond to the I-T Department immediately.

The CBDT also said that it has noted in a few media, including social media, some questions are being raised with regards to CBDT’s computerised email to the taxpayers to respond within 7 days for enabling the department to process refund. In this regards, it is clarified that these are the necessary routine process related communications to the taxpayers to seek response on defective ITRs, prima facie adjustments and where confirmation is sought about certain claims made by them. In all such cases, a quick response from the taxpayer would enable the I-T Department to process their refunds expeditiously. “

Why Income Tax Refund is not received?

After reading the above email & Press release/s, you must have understood the reason for hold on your Income Tax Refund by Risk Management System Process (based on certain risk parameters in the system) may be as under-

1. Any Income Tax Demand is outstanding against you for any earlier assessment year/s & you have not submitted the response. In case of non-response/wrong response, refund will be adjusted u/s.245 to that extent

2. You have submitted Bank Account details for Refund, which is common in one or more ITR/s filed by another Tax Payer/s. e.g. You are joint account holder in the bank along with your son & wife. All of you 3 persons have submitted same bank account for getting refund. However the fact is not known to Income Tax Department’s system. Tax department want to make sure that the correct bank account details have submitted for refund or someone wrongly (intentionally or unintentionally) fed another bank account details.

3. You have not submitted response to prima facie adjustments u/s.143(1)(a)

4. You have not submitted response to Defective Income Tax Return notice u/s. 139(9)

5. You have claimed Tax Rebates/Deductions/Exemption over & above Form 16. For example, you have claimed deduction (80C/80D/80G/80E/etc) over and above amounts reflected in Form 16 for LIC/Tuition Fees/Medical Policy/House Loan interest/House loan principal repayment/House rent allowance exemption/Donation. In case that the same thing is being done every year in the ITR, you may be high risk assessee. Department will ascertain the genuineness of claim with supporting documents.

6. You may also verify the 26AS and Compliance Portal/Insights Reports for various Tools/Reports available and cross verify with details filed in ITR for any incorrect information furnished. Further you may take assistance of E-Filing Helpdesk Team of Income Tax Department by calling at their Toll Free Number /writing email to them/using e-nirvan/e-grievance option available at e-filing portal.

7. In case you have not received any such notice/communication from department, but still the refund has not been received, then you may also check that incorrect IFSC Code/Bank Account Number/Closed bank account details may have been given at the time of filling of ITR. You can now submit Refund Reissue Request at E-filing Portal.

Concluding Remarks

Thus, you need not to worry about the communication received from Income Tax Department & file your response according to the facts of the case. In case some mistake has been done at the time of filing of return, you can opt to file the revised Income Tax Return. In case you think that all the figures & facts are already correct in the return filed, then you may file the response accordingly. In later stage if any notice is issued by department & you could not justify the same with proper documents, you may be liable for heavy penalty and Interest.   

Disclaimer

Please refer all the relevant section, rules, notifications and amendments as applicable. The Author is not responsible for any losses incurred. Content is merely for sharing knowledge & Educational Purpose only.

Author can be reached at casagargambhir@gmail.com for any queries, issues & recommendations relating to article.

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61 Comments

  1. Ajmal says:

    Hello Sagar,
    I had received the email for verifying Refund amount to which I selected option 2 back in April 20. Hence I need to resubmit the ITR with correct refund amount. I understand the I need to file under section 139(5) basis information provided by you on this website. But I am not able to figure out which option to select on IT website and how to go about it. Request your kind guidance with two things. 1). Can I still file my returns for FY19-20 and 2). Please be kind enough to guide step by step on how to go about it. Thanks in advance ! Appreciate your guidance !!
    Regards,
    Ajmal

    1. CA Sagar Gambhir says:

      Yes you can file revised ITR for AY 2019-20 till 31st July.. Many videos are available on YouTube..you can refer that for step by step guide…its similar to original Return filing except section and details of original Return filed to be mentioned

  2. Arambam Romesh Singh says:

    Hello Sir,

    I received an email stating ” Your Income Tax Return has been selected under risk management process wherein your confirmation is required on the claim of refund. You are requested to submit your response in the e-Filing Portal post login by selecting either of the following options:

    -The claim of refund is correct to the best of my knowledge and belief
    -Return of Income is being revised wherein, correct claim of refund correct claim of refund shall be made”

    I have selected the option 2 ” beacuse I thought I already revised the return of income of Year 2019-2020 on last 31 of June 2019.

    Still seem haven’t from the IT yet .. How long would they take to process ? Please suggest….

    Thank

    1. Sagar Gambhir says:

      Kindly check you have eVerified both the returns filed. Also re-check any error still not rectified in revised Return filed in June 19. File your response accordingly

        1. Arambam Singh says:

          Kindly check you have eVerified both the returns filed. Also re-check any error still not rectified in revised Return filed in June 19. File your response accordingly

          I have already checked and it seem there was not error. The original and revised filed in June have their each acknowledgement number and showing revised filed accepted and original return was processing is closed.

          Please suggest the needed action required.

  3. Chaitanya Krishna says:

    Hi sir,
    I got a mail regarding u/s 143 (1)(a)(ii) for incorrect claim. But I have not submitted any response as it is return that “the return of income will be processed after making necessary adjustment(s) u/s 143(1)(a) of Income Tax Act, 1961 as proposed in part-A, without providing any further
    opportunities in this matter.”. Now I got the risk management mail. What if I did not submit any response to this mail too? Will I get the income tax return making necessary adjustments? I’m ok with the adjustment and not interested in filing revised return. What should I do? Please let me know

  4. Dipti R. says:

    Hello. I filled return last year and received ack#1 for it. Then within 2 weeks I revised the return with minor modifications and received ack#2 for it. Ack#2 should be considered as it was revised but Ack#1 went into status of “ITR Processed” and I received the refund as per ack#1 so I assumed tax formalities r complete. Few days back I got this “Claim of Refund” email for Ack#2 which is still in “Successfully e-verified” status and it wants me to pick option 1 or 2. I am afraid if I select 1, then gov might pay me AGAIN or if I select 2 then gov might expect a re-revised claim. Neither of these are valid as refund is already settled. Can I just ignore the selections and do nothing about it? Thanks.

    1. CA Sagar Gambhir says:

      Yes, you may ignore & wait for further action by department. In case revised return as per ack-2 is processed , you need to deposit the excess refund credited to your account along with penal Interest.

      1. Dipti R. says:

        Thanks for the reply. With no info at all about what default will get selected by govt or portal, can I select option-2 so they dont process the claim at all (as they will keep waiting for my revise against ack#2, which I will never file)? If they select 1 by default then thr will be unnecessary refund process (not sure if i m thinking it correctly for 1)

        1. CA Sagar Gambhir says:

          Govt never keep on waiting… 30th June is the last date to revise the ITR. In any case, govt will process the ITR. Hence do the needful accordingly

  5. Anand says:

    Has anyone received the refund after submitting response as correct refund.if yes then within how many days.dies they require any additional proof

  6. prasad says:

    Hello Sir,
    I received an email stating ” Your Income Tax Return has been selected under risk management process wherein your confirmation is required on the claim of refund. You are requested to submit your response in the e-Filing Portal post login by selecting either of the following options:
    The claim of refund is correct to the best of my knowledge and belief
    Return of Income is being revised wherein, correct claim of refund correct claim of refund shall be made”
    Accordingly, i revised the return of income of AY 2019-20.
    Now, while submitting it have i to select section 139 (5), as it is not allowing to choose other option.. my queries are
    1..can i choose option 139(5)..?
    2. The amount of refund is increasing while selecting 139 (5), compared to that of section : ” 139(4) belated”
    3. actually i am filing the revised return, it is asking for receipt number , where can i get it ?

    kindly suggest

    1. CA Sagar Gambhir says:

      1. Yes, You need to select 139(5) revised
      2. Refund increased in 139(5) because there is no late fees for filing revised Return. However late filing in 139(4) comes with late filing fees.
      3. Orginal Filing acknowledgement number and date is mentioned on your earlier return filed. Please check efiling ITR V.

      1. PANKAJ says:

        Hello Sir,
        I received an email stating ” Your Income Tax Return has been selected under risk management process wherein your confirmation is required on the claim of refund. You are requested to submit your response in the e-Filing Portal post login by selecting either of the following options:
        The claim of refund is correct to the best of my knowledge and belief
        Return of Income is being revised wherein, correct claim of refund correct claim of refund shall be made”
        Accordingly, WHILE I REVISING the return US 139(5) PENALTY IS BEING LEVIED US 234F of income of AY 2019-20.

        1. CA. Sagar Gambhir says:

          You may be selecting wrong section/wrong head. Please check. In case still error persists, please send us email with credentials to help you.

  7. Priyanka says:

    Hello Sagar
    I have revised my return in respnse to int u/s 143 (1) but missed to declare income from investments which are taxable. I received mail from the department from risk management process and i selected option 1 claim of refund correct
    I wanna revise my return
    Can i revise return even after submitting response of claiming refund correct

  8. Srinivas says:

    Hello, I have got mail my refund is under Risk Management for confirmation. I received letter U/s234 for some amount of AY2012-13 in 2015, this is due to my employer not deposited and later my employer said they will settle it. In AY2018-19 I received refund which i mentioned in returns, but in refund certificate the previous AY2012-13’s due amount was mention but not adjusted. In AY2019-20 returns I have not entered previos due u/s 234. in Part D. So please guide me whether I have to Pay previous due OR I have to submitt revised return

  9. Venkat N says:

    Hi,

    I have responded with Option 1, But response as of now. Please help me why I have not received my refund as they said they will refund within 7 working days .

    Regards
    VENKAT

  10. Siva Appikonda says:

    Dear Tax Payers,

    Many assesses in India who have refunds due from tax departments are receiving this notification in the recent few weeks. Through your reply, you are basically confirming in addition to the ITR filed that the refund is legitimate and you are rightly claiming the refund. There is nothing to worry if you receive this email. Everybody who has refund claim is getting this and it is routine.If you feel that there is a mistake in the refund claimed, you can deny the refund.If your claim is correct give your acceptance. Hope the above clarified. Feel free to call me if you have any queries. Ph.9121260700
    SMM Rao

  11. Jerin says:

    Hi ,
    I have submitted the response about 8 days back and I have pre validated bank account . Still I haven’t heard anything from the IT yet .. How long would they take to process ?

  12. Anil says:

    I had responded to the email and submitted my response with Option A. However I have not yet received any refund even after 7 days pls guide what to be done next. Regards

  13. Mohan says:

    I have selected the option 1 on the 14 Apr considering the data is correct, Tax department has mentioned to refund 5-7 days. Should I wait for few more days for the amount return? Please let me know.

  14. A M Kaladagi says:

    I have submitted response on option 2 saying that Return of Income is being revised wherein, correct claim of refund shall be made as earlier I was updated wrong information in 80CCD by mistakenly now please tell me that does they go with necessary adjustment or else i need to revise it rectification in 154.
    Pls suggest..

    1. CA Sagar Gambhir says:

      You need to revise the Return u/s. 139(5).

      Its not a case of rectification u/s.154 as the same can be done only after processing of ITR by department

  15. Rudrappa avvappa angadi says:

    I have not submitted response to prima facie adjustments u/s.143(1)(a) as the themselves said that if we are not submitting any response within 30 days it will be auto adjusted for refund. Now i got this mail telling that it is considered under risk management. I did not revised the ITR as they said that they will adjust it automatically. Now i clicked on option 1 saying that it my refund is correct as best of knowledge ( though it has some issue under 143(1)(a) ) now is please tell me that dose they go with necessary adjustment or else i need to revise it

  16. Meenakshi says:

    My government schools accounts people did not give HRA exemption, 80C and 24 housing loan rebate even after submitting all the required valid bank transfer, rent agreement, documents, receipts which were allowed earlier to me in my previous schools for many years. Due to form 16 discrepancies with my claims in the IT return, I received reply from e samadhan about discrepancies to be verified and refund would take time. Now I have received this email of risk assessment and in reply I have agreed for risk assessment. I shall be ready to produce the documents as and when ITO calls in future.

  17. Ashis says:

    Hi, I had filed my itr on 09/07/2019 for ay 2019-20. But my return was not yet processed. I received a mail on 14/04/2020 to confirm the same. I have done the same. My ITR was simple and except salary income I had claimed refund for 80GGC. Kindly suggest do I need to do anything else or it will be processed. Regards,

  18. Chandan Agarwal says:

    Hello sir,
    In my case. Return has been filed on time. And it’s already 6-7months ago. But the return has not yet been processed. And refund is withheld. Whome should I touch for the same. Greverence cell only gives assurence”your refund will be processed soon” with no time limit. We relay very much on refund. Plz guide.

  19. Vek says:

    Hi Sagar,
    I mistakenly submitted the claim on refund form using the second option. Now I do not see anyplace to undo that action. I do not have any revision that I need to make and now I do not see any option for rectification. All things I’ve tried end up in a dead end.
    1. Tried re-submitting the ITR can be submitted only once. Please select another option. I don’t see any other option
    2. Rectification -> Income Tax -> My AY throws me Processed Income Tax Return Details are not available for the selected Assessment Year. Kindly try after some time.
    3. Worklist -> For Your Action .. This option says “No Pending Actions Found”
    4. Refund Reissue .. Gives me “No refund failures to raise refund re-issue service request”

    Would really appreciate if you could guide me as to what I should be doing. Freaking out a little here

    1. CA Sagar Gambhir says:

      1. File revised return by providing correct section in ITR i.e. Under Section 139(5).
      2. Raise grievance at e-filing E-Nirvan option about the fact that you wrongly click option 2
      3.In case nothing happens, kindly wait for tax department to process your ITR

  20. Karthik says:

    Hi Sir,
    I have received this e mail for refund confirmation. But i had some outstanding demands, which should have got adjusted by my previous year refunds, however i am yet to cross check them and raise justification for old demands. In case i go ahead and confirm this return, still i would be able to claim rectification of my old demands or accepting this will make me in eligible to justify/rectify my old demands. Would be great if you can clarify. However. am clear with my last filing, and the refund pending is very much valid to the best of my knowledge.

    Thanks,
    Karthik

    1. CA Sagar Gambhir says:

      In that case , you can Opt for Option 1. But it would be advisable to file Response to Outstanding demand & its rectification at the earliest possible so that refund won’t get adjusted with demand. Right to file rectification u/s.154 would be still available even after submitting response to this refund matter.

  21. Milind Rembhotkar says:

    Sir, I have submitted rectification request for A.Y.2018-19 for correcting mistake of wrong TAN No. Due to this mistake, the Dept. has served me Demand whereas I am entitled to get a refund. I have submitted rectification on 16/05/2019 but till date, no action has been taken by CPC. Please suggest me further action on my part. Thnks.

    1. CA Sagar Gambhir says:

      Kindly check Form 26AS reflects all the entries of Tax Credit for year under consideration. In case, all entries are duly reflected in Form 26AS, raise grievance under E-Nirvan Tab on e-filing Portal with relevant details (Resolution Sought from & other sub-heads). They will clarify to you the exact status.

  22. Dr Harsha says:

    Hi..
    My ITR was sent to the AO in September and i have not heard from the AO since then. I have neither received any mail nor any information under worklist options in the eportal website.
    Is there anything i can do to get the refund?

    1. CA Sagar Gambhir says:

      You can check in ‘e-Proceedings’ & ‘Worklist’ tab in e-filing Portal about any latest communication received from Tax Department. In case still no communication, then you raise grievance under ‘E-Nirvan’ tab at portal. Select Resolution Sought from ‘Assessing Officer’ > ‘Refund Not Received’. They will surely confirm you the exact status of Refund.

  23. CA Sagar Gambhir says:

    Yes, If there is additional Tax Liability to pay, you should revise the return immediately (Even Due Date is upto 30th June). This sue motto action would be better than paying tax in response to any future notice.

  24. Kumaran says:

    Hi sir,

    I have filed my returns, but have some issues under the exemptions section. Some of the exemptions section information is incorrect. I got the risk management email from the ITR, then I responded saying the claims submitted by me are correct according to my knowledge and belief.

    Now I can’t cancel that response. Can I refile file my ITR again? As the refiling date has been extended till June 2020 ? Will this have any implications? Please let me know, I m confused

    1. CA Sagar Gambhir says:

      Yes, If there is additional Tax Liability to pay, you should revise the return immediately (Even Due Date is upto 30th June). This sue motto action would be better than paying tax in response to any future notice.

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