Income Tax Refund Delay: What to Do as a Taxpayer?
- Farheen Mukadam
- Sep 9
- 7 min read
You are eligible for an income tax refund if the total amount of taxes you have paid (TDS, advance tax, and self-assessment tax) exceeds your actual tax burden. For a quick refund procedure, it is crucial that you file your income tax return well in advance. The tax department may take longer to process your refund if you file your taxes near the deadline, since they have more returns to process. Other factors, such as inaccurate bank account information, a discrepancy between the ITR filed and the AIS/Form 26AS, demand notifications pending action, etc., could, nevertheless, be the cause of the refund delay. To find out why your income tax refund may be delayed and what to do in the event that it is, continue reading.
Table of Contents
What is an Income Tax Refund?
You receive the additional amount paid as a tax refund if you paid more taxes than you were obliged to pay in advance tax, TDS, or TCS. It's similar to getting your money back for overspending. For example, a taxpayer is entitled to a Rs. 3,000 refund from the Income Tax Department if they paid Rs. 12,000 in taxes for the fiscal year 2024–2025, but their real tax burden was only Rs. 9,000. The income tax department will begin processing the tax return as soon as it is filed and verified.
Income Tax Refund Processing Time
Only once the taxpayer e-verifies the return does the tax department begin processing refunds. The refund usually takes four to five weeks to appear in the taxpayer's account. The taxpayer must, however, look for notice of any anomalies in the ITR and check the email for any notifications from the IT department regarding the return if the refund is not received within this time frame.
Reasons for Delay in Income Tax Refund
There have been numerous delayed refund claims in the returns submitted for the fiscal year 2024–2025 (AY 2025–26). The department has stepped up the scrutiny procedure, which may be a leading cause. The agency uses AI techniques and smart data analytics to detect a lot of returns. As a result, it is important to keep adequate records to support any legitimate deductions and to avoid making false claims.
Longer Processing Time: Especially during the busiest tax season, processing tax refunds may take some time. You might just need to wait for your tax authority to process your return and provide the refund if you recently filed your taxes.
Errors on Your Tax Return: Your refund may not be processed as quickly if your tax return contains mistakes or inconsistencies. Verify your return again to be sure all the details—such as your PAN, income amounts, and deductions—are correct.
Mismatch in Form 26AS: Your tax refund may be delayed if the tax deducted at source (TDS) data on Form 26AS differs from the information on your income tax return. All of your tax payments associated with your PAN number are documented on Form 26AS.
Incomplete Documentation: Your refund might not be processed until the necessary paperwork has been submitted and validated if you claimed any credits or deductions that call for extra proof of receipts or proof of expenses.
Taxes or Debt Owed: Your return can be reduced to pay off any back taxes or other debts you owe the government. To settle outstanding obligations, the IT department may withhold all or a portion of your refund.
Changes in Bank Account: If you asked for a direct deposit but gave false information about your bank account, it can be because your name differs from what is on file or you entered the wrong account number. There may be a delay in your refund. Verify your bank account information again to be sure it is correct.
Return Under Scrutiny: The Income Tax Department occasionally chooses returns for scrutiny in order to make sure everything is correct. This could somewhat postpone your tax refund, but only until they finish their additional evaluation.
Mail Delivery Delays: If you chose to have your refund sent to you via mail, postal service problems or an invalid mailing address may cause it to arrive later than expected.
Return Filed Offline: The Income Tax Department may need additional time to reconcile all of your documentation and process your refund if you filed your tax return offline rather than online.
Identity Theft or Fraud: Your lawful refund may not be processed until the problem has been fixed if your identity has been stolen or if someone has used your information to file a false tax return.
Bank Accounts Not Verified: Make sure your bank account is pre-validated in order to obtain your ITR return. Your PAN card information and the name on your bank account must match. The bank account you specified on your ITR will receive the income tax refund. Inaccurate account information may prevent the refund from being received.
Missing Out on ITR e-verification: It is required that you e-verify your income tax return; else, it will not be processed. After submitting your ITR, finish this step within 30 days.
Actions to Take if Your Income Tax Refund is Delayed
Based on the reason for the delay in the income tax refund, you can take the following actions to deal with the situation:
Steps to Follow to Raise an Income Tax Refund Request
Taxpayers can request a refund reissue if the refund claim submitted in the ITR is unsuccessful in obtaining the refund. To obtain a refund reissue, follow these steps:
Step 1: Go to the e-filing website and sign in with your credentials.
Step 2: Go to the "My Account" area.
Step 3: Click "Create Refund Reissue Request" after choosing "Refund Re-issue."
Step 4: Enter the required information, such as your PAN, assessment year, and reimbursement amount.
Step 5: Verify electronically.
Step 6: Send in the request for a refund reissue.
Steps to Check Your Income Tax Refund Status
To view the refund status, take the actions listed below:
Step 1: Go to the income tax e-filing website and use your login information to access your account.
Step 2: Select "e-File," "Income Tax Returns," and then "View Filed Returns."
Step 3: Check the ITR status and select the appropriate AY for which you wish to verify the refund. Click "View details" to see the information.
Step 4: The details and the status of your refund will be shown in a new window.
Your ITR will display the status "Processed with refund due" if it has been processed, but no refund has been granted. To find out the status of your income tax refund, you can also go to the tin-nsdl website. After you enter the PAN, the appropriate assessment year, and the captcha code in the URL above, the refund status will be shown.
Conclusion
The Income Tax Department has demonstrated unparalleled efficiency throughout the 2025 tax filing season, as seen by the average refund processing time falling from 93 days in 2013 to just 17 days at present. But even with the digital advancements, more taxpayers are complaining about their refunds being delayed—many are waiting three to four weeks after verification. You can consult experts to understand the reasons for the delay of your refund and take the necessary measures to get it processed.
Frequently Asked Questions
When will we get an income tax refund?
After the CPC Department processes the ITR, refunds are given out within a time frame of 20–45 days.
Why is my ITR status still under processing?
This indicates that you have finished your portion of the tax filing process. You must wait for the return to be processed by the Central Processing Centre (CPC). After processing, the status will read ITR Processed, indicating that your income tax return for that year has been authorised by the tax department.
How do I escalate the issue of my refund not being processed?
If the reimbursement is still pending after e-verification, you can contact CPC by calling their hotline at 1800 103 0025, 1800 419 0025, or 080-61464700, which is open Monday through Friday from 8:00 am to 8:00 pm. You can also use the e-filing portal to file your complaints.
What is the return under scrutiny?
To verify correctness and compliance, the IT Department picks a few ITRs for detailed checks. The refund process may slow down of if your return is selected for review.
What is the condonation of delay?
The procedure of asking the Income Tax Department to grant you permission to submit your ITR (after the deadline for filing) or verify your ITR (after 120 days of filing) while justifying the delay is referred to a "condonation of delay."
What is the status if the income tax refund is received?
When the reimbursement is received, the status will be "refund issued." Additionally, all of the refund information is available, including the date of clearance, the return amount, and the method of payment.
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