Grievances, whether technical, procedural, or service-related, are expected in any large-scale system. This is especially true of India’s Income tax Department which is known to process millions of returns annually from individuals, businesses, companies, HUFs, NRIs, and other entities.

In fact, the Income Tax Department processed a record 6.77 crore returns in 2023, and along with this surge, the volume of taxpayer grievances also saw a huge increase. While many are resolved within 7 to 15 working days, not all see timely closure due to backlog, incomplete submissions, or departmental handovers.

This makes it critical for taxpayers like you to raise complaints in a proper, structured way to ensure faster redressal and escalation if needed. This blog will tell you all you need to know about how to file a complaint in the Income Tax Department and get timely redressal.

What is a Grievance in the Context of Income Tax?

A grievance is any issue, complaint, or dissatisfaction you have with the services or procedures of the Income Tax Department. Common examples include the following.

• Delayed refund despite processing
• Errors in Form 26AS or TDS credits
• ITR processing status showing incorrect info
• PAN-Aadhaar linking issues
• Technical glitches in the e-filing portal

Whether your issue is technical, transactional, or people-related, the grievance system provides an official platform for seeking redressal.

How to File a Complaint in the Income Tax Department

Filing a grievance on the Income Tax e-Filing portal is quick and completely online. Here's how you do it.

Steps to Raise a Grievance:

1. Visit the Income Tax e-Filing portal
2. Log in using your PAN, password, and captcha.
3. Go to 'Grievances' tab in the top menu.
4. Click on 'Submit Grievance' from the drop-down.
5. Select the relevant category and sub-category, such as refund, PAN, TDS, etc.
6. Write a clear description of your issue (attach supporting documents if required).
7. Click Submit. You’ll get a Grievance Acknowledgement Number.

Make sure your grievance description is specific and includes reference numbers like ITR, PAN, TAN, or TDS Challan numbers wherever applicable. As a non-registered user, you can file a grievance by visiting the e-filing website, scrolling to the “Contact Us” section, selecting "I do not have a PAN/TAN" under Grievance, entering your personal details and grievance information, attaching additional tax-related information, and submitting.

Need help raising a grievance on the Income Tax portal? Topmate’s tax experts are here to guide you through every step, ensuring your issue is filed accurately, directed to the right department, and followed up professionally.

Once you know how to raise a grievance on the Income Tax portal, it’s equally important to understand the different types of issues and which department handles them. This ensures your complaint is directed correctly for faster and more effective resolution.

Types of Grievances: Departments and Categories

The Income Tax grievance mechanism is well-integrated across departments. Here’s how they’re categorized.

1. Central Processing Centre (CPC) - Bangalore

The Central Processing Centre (CPC) in Bangalore is responsible for the electronic processing of Income Tax Returns filed by taxpayers across India. It also handles various taxpayer grievances related to ITR processing, refunds, and notices. Common issues handled by the CPC include the following.

a) Refund Delays or Mismatches
Taxpayers often face delays in receiving their income tax refunds, or they might receive a refund amount that doesn’t match what was claimed in their Income Tax Return. Common reasons include the following.

• Mismatched TDS/TCS entries
• Incorrect bank account details
• Processing delays at CPC due to high volumes
• Adjustment of refund against outstanding tax demand from previous years (without proper intimation)

Examples:

• "Refund not received despite timely filing."
• "Refund received is lower than expected without clear explanation."
• "No update on refund status for several months."

b) ITR Processing Errors
Errors in ITR processing can result in incorrect computation of tax liability or refund. These errors could be due to:

• Systemic mismatches between Form 26AS, AIS, and ITR details
• Automated disallowance of certain deductions or exemptions
• Errors in carrying forward losses or exemptions

Examples:

• "Deductions claimed under Section 80C disallowed incorrectly."
• "Loss carry forward not considered in assessment."
• "Mismatch in salary or income figures reported and processed."

c) Notice Issued Without Valid Reason
Sometimes taxpayers receive notices such as under Section 143(1), 139(9), or others without any clear or justified reason. This can cause unnecessary confusion and stress.

• Notices for defective return despite all details being correctly filed
• Intimations for tax demand where taxes were already paid
• Repeated notices for the same issue even after providing clarifications

Examples:

• "Received a notice under Section 139(9) despite filing a complete return."
• "Notice issued for demand even though tax was already paid and reflected in Form 26AS."
• "Received rectification notice without any changes made in return."

2. PAN Services (NSDL/UTIITSL)

The PAN Services handled by NSDL and UTIITSL are responsible for the issuance, correction, and management of PAN (Permanent Account Number) cards. Taxpayers often raise grievances related to errors or issues in their PAN records that can directly affect tax filings and financial transactions.

a) Incorrect PAN Details
Errors in PAN records, such as misspelled names, incorrect date of birth, wrong father's name, or inaccurate photograph/signature, can lead to discrepancies in tax documents and identity verification failures.

• These errors often occur during the application or data entry process.
• Such issues may also result in mismatches with Aadhaar or banking KYC details.

Examples:

• "My PAN card shows an incorrect name/spelling."
• "Date of birth printed on PAN does not match my ID documents."
• "Photograph/signature on the PAN is incorrect."

b) PAN Not Linked with Aadhaar
As per the government mandate, linking PAN with Aadhaar is essential for income tax filing and to keep the PAN active. Failure to link may lead to:

• PAN being marked as inoperative
• Inability to e-verify ITRs
• Issues while filing returns or completing financial transactions

Examples:

• "Unable to link Aadhaar with PAN despite matching details."
• "Error message while trying to complete PAN-Aadhaar linkage."
• "PAN marked inoperative even though Aadhaar is already linked."

c) Duplicate or Blocked PANs
Some taxpayers may unintentionally end up with multiple PANs or find their PAN blocked due to duplication or discrepancies.

• Holding more than one PAN is illegal and can attract penalties.
• A blocked or deactivated PAN can prevent access to tax portals and halt financial processes.

Examples:

• "Found two PANs issued in my name – need to surrender one."
• "My PAN is blocked due to duplication, and I cannot file returns."
• "Received notice for duplicate PAN despite using only one.

3. TDS and TRACES Issues

The TDS Reconciliation Analysis and Correction Enabling System (TRACES) is a platform managed by the Income Tax Department to monitor and manage Tax Deducted at Source (TDS) related activities. Taxpayers frequently face issues related to incorrect TDS credits, missing entries, or mismatches in Form 26AS that impact their tax filings and refunds.

a) Mismatch in TDS Credit (Form 26AS)
A mismatch between the TDS mentioned in the taxpayer’s ITR and the amount shown in Form 26AS can delay refunds or lead to incorrect tax demands.

• Often caused by incorrect PAN entries by the deductor
• TDS deposited but not properly reported in quarterly TDS returns (Form 24Q, 26Q)

Examples:

• "TDS deducted by my employer not matching with Form 26AS."
• "Claimed TDS in ITR is not being allowed due to mismatch."

b) Incorrect Deduction by Deductor
TDS may be deducted at a higher or incorrect rate by employers, banks, or other deductors.

• Errors in applying relevant TDS sections or PAN not provided to deductor
• Deduction made even when not applicable under law

Examples:

• "Bank deducted TDS at a higher rate despite submission of Form 15G/15H."
• "TDS deducted from exempt income like PPF interest."
  
  

c) TDS Not Reflecting in Account
Sometimes, even after TDS is deducted and deposited, it does not appear in Form 26AS or AIS. This could be due to the following reasons.

• Due to delay or error in TDS return filing by the deductor
• Mismatched PAN details or incorrect challan details

Examples:

• "TDS deducted by my company not showing in Form 26AS."
• "TDS entry missing for one quarter, affecting refund eligibility."

4. e-Filing Portal Technical Issues

The Income Tax e-Filing Portal is the primary digital platform for filing ITRs, responding to notices, and managing taxpayer profiles. However, users often face technical glitches that hinder the filing and verification process, leading to delays or non-compliance.

a) Login Problems or Profile Errors
Taxpayers may experience issues while logging into the portal or accessing their profile.

• Errors such as invalid credentials, OTP not received, or account lockouts
• Profile data not syncing correctly, affecting return filing or Aadhaar linking

Examples:

• "Unable to log in due to repeated OTP failures."
• "My profile shows outdated details despite updating them."

b) ITR Form Not Uploading
Sometimes, technical errors on the portal prevent users from uploading or submitting their ITR forms.

• Upload errors due to file format or size issues
• Server errors or timeouts during submission

Examples:

• "System shows error while uploading ITR JSON file."
• "Submission keeps failing due to 'technical error' message."

c) Verification or e-Signature Errors
After filing the return, verification is mandatory—either through Aadhaar OTP, EVC, or DSC (Digital Signature Certificate). Errors in this step can invalidate the return.

• Aadhaar OTP not being received or failing verification
• Issues with DSC installation or recognition by the portal

Examples:

• "e-Verification through Aadhaar not working—OTP not received."
• "DSC not recognized during verification process."

Facing glitches on the income tax e-filing portal? Topmate’s expert ITR filers are here to guide you every step of the way, ensuring smooth, error-free filing from login to final verification. Leave the tech hassles to us and file your returns with confidence and clarity!

5. Jurisdictional Assessing Officer (AO)

The Jurisdictional Assessing Officer (AO) is the designated income tax official responsible for assessing a taxpayer’s return, issuing notices, and handling rectifications at a regional level. Taxpayers may need to approach their AO for grievances related to incorrect assessments, demands, or unprocessed requests.

a) Incorrect Demand Notices
Sometimes, taxpayers receive demand notices for outstanding taxes that are incorrect or already settled.

• May arise due to mismatch in tax paid and records available with AO
• Errors in assessment or non-consideration of filed replies or documents

Examples:

• "Received a demand notice for a year where tax was already paid."
• "AO failed to consider TDS reflected in Form 26AS while raising demand."

b) Non-reflection of Rectification Requests
Taxpayers who submit rectification requests under Section 154 often face delays or non-responsiveness from the AO's office.

• Rectification not acknowledged or processed despite follow-ups
• Status remains pending for long periods with no action taken

Examples:

• "Filed rectification request 3 months ago, still no update from AO."
• "AO has not corrected the error in demand even after submitting documents."

c) Unfair Assessment or Recovery Actions
In some cases, the assessment proceedings may seem arbitrary, or recovery proceedings may be initiated prematurely or unfairly.

• Additions made without proper opportunity of being heard
• Recovery from bank accounts or salary without intimation

Examples:

• "Assessment completed without considering my response to notice."
• "Tax recovery initiated from my account without prior communication."

In addition to these, the Income Tax Department has designated specific departments for handling grievances:

• CPC-ITR: Handles issues related to Income Tax Return processing, refunds, and notices.
• CPC-TDS: Deals with TDS-related issues, including Form 26AS discrepancies.
• DIT(Systems): Addresses technical problems with the tax system, including the e-Filing portal.
• NSDL and UTIITSL: Manage PAN-related grievances.
• SBI: Handles refund-related issues, especially when refunds are not credited to the taxpayer's account.

Choose the right department to route your complaint to the correct team from the start. It saves time and improves the chance of resolution. Get expert help from Topmate’s professionals to ensure your grievance is filed accurately and reaches the right authority without delays.

How to Check the Status of Your Grievance

Once your grievance is submitted, you can track it using the same portal.

Steps to Check Grievance Status:

• Log in to https://www.incometax.gov.in
• Go to 'Grievances' > 'View Grievance Status'
• Enter your Grievance Acknowledgement Number
• You’ll see the status: Submitted / Under Process / Resolved

The department may also send email/SMS alerts if your issue is resolved or requires more info. Although there is no specific timeframe, you can usually expect your grievance to be redressed by the Income Tax Department within 7 to 30 days, depending on the complexity of the issue.

FAQs

1. What is Form 26AS?

Form 26AS is an annual tax statement that summarizes all tax-related information—such as TDS, TCS, and advance tax—linked to a taxpayer’s PAN. It can be accessed through the Income Tax Department’s e-filing portal using your PAN login credentials.

2. How do I escalate a grievance that remains unaddressed?

Apart from re-submitting the grievance, you can escalate unresolved matters to the Income Tax Ombudsman mechanism, which is now integrated into the Central Board of Direct Taxes (CBDT)’s feedback and grievance system.

3. When should I contact my Jurisdictional Assessing Officer (AO)?

You should contact your Jurisdictional AO directly for issues specific to your tax assessment, such as incorrect demand notices, pending rectifications, or recovery actions that require personalized attention.

4. How can I ensure that my grievance is routed to the right department?

While filing the grievance on the e-filing portal, carefully choose the correct department category (e.g., CPC, PAN Services, TDS/TRACES). This improves resolution time and ensures your issue reaches the right team from the start.

5. What information should I include in my grievance for faster resolution?

Include clear and concise details about the issue, relevant assessment years, supporting documents, and any previous correspondence or ticket numbers. Proper categorization and documentation significantly improve your chances of timely resolution.

6. What is the role of the Income Tax Ombudsman in grievance redressal?

The Ombudsman handles unresolved or recurring taxpayer grievances that were not satisfactorily resolved through the regular channels. While the separate Ombudsman office has been phased out, its functions are now absorbed into CBDT’s online grievance system.

7. How can I track the status of my grievance?

You can track your grievance status directly on the e-filing portal under the ‘Grievances’ section after logging in with your PAN. Updates and resolutions are generally reflected here along with timelines.

8. Can I file multiple grievances for different issues at once?

Yes, but it's recommended to file separate grievances for distinct issues to ensure each is directed to the appropriate department and resolved efficiently.

9. What is the usual timeline for grievance resolution?

While timelines can vary depending on the issue, most grievances are addressed within 15 to 30 days. Complex cases, especially those involving assessments or rectifications, may take longer.

10. Can Topmate help with grievance filing and escalation?

Absolutely. Topmate’s tax professionals can assist you in filing your grievances accurately, choosing the right department, and drafting escalation letters to ensure timely and effective resolution.

Conclusion 

In summary, grievances are a natural part of managing a large tax administration system. Filing them systematically using the designated portal and tools increases the likelihood of resolution. Escalation should be considered only when standard resolution timelines are exceeded or outcomes are not satisfactory despite reasonable follow-up.

Staying informed and following the structured process empowers you as a taxpayer and keeps the system accountable. Don’t ignore tax-related issues; grievance redressal is your right. Topmate offers you all the help you need to learn how to file a complaint in the income tax department effectively. Get expert guidance, seamless filing support, and proactive follow-ups to help you resolve issues with confidence and ease.

Contact us today to experience a more streamlined and efficient grievance redressal process.