How To Get Income Tax Refund If Old Bank Account Is Closed — Easy Online Reissue Process
If your Income Tax Refund fails because the bank account you mentioned in your ITR is closed or inactive, you can still get your money back by updating your details on the Income Tax e-filing portal. The process is simple — log in, add and validate a new active bank account, and then request a refund re-issue for the concerned assessment year. Refunds usually fail due to incorrect details, unvalidated accounts, or account closure. Once you update and validate your new bank account and link it with your PAN, the Income Tax Department will reprocess your refund within a few working days.
What Happens When Your Bank Account Is Closed After Filing ITR
Sometimes, after you file your Income Tax Return (ITR), the bank account you used for the refund might get closed or deactivated. In such cases, the Income Tax Department will try to send your refund, but it will fail because the account no longer exists. Don’t worry — your money is safe and can still be received once you update your new account details.
Why the Refund Fails
Refunds can fail for a few simple reasons:
The bank account mentioned in your ITR is closed or inactive.
The account is not pre-validated on the Income Tax portal.
Incorrect details like IFSC code or account number were entered. When this happens, the refund status on the portal will show “Refund Failed” or “Payment Not Processed.”
Don’t Panic — You Can Still Get Your Refund
Steps to Add a New Bank Account
Here’s how you can fix the issue:
Visit www.incometax.gov.in and log in to your account.
Go to ‘My Profile’ → ‘My Bank Account’.
Click ‘Add Bank Account’ and enter your new account details like IFSC, account number, and type.
Submit and validate the new account.
Once validated, mark it as your “Refund Receiving Account.”
How to Request Refund Re-Issue
After adding and validating your new account:
Go to the ‘Services’ section on the portal.
Choose ‘Refund Re-issue’.
Select the Assessment Year where the refund failed.
Pick your new validated bank account and submit the request. Once approved, your refund will be reprocessed into your updated account.
Important Things to Remember
