How to Reissue Income Tax Refund After Bank Validation Failure
- Nimisha Panda
- Oct 31
- 11 min read
When a refund fails due to bank validation issues, the Income Tax Department holds the amount until the correct details are provided. This usually happens when the taxpayer’s bank account is not pre-validated, inactive, or mismatched with the PAN. To reissue your income tax refund after a bank validation failure, update and revalidate your bank details on the Income Tax e-filing portal, then submit a “Refund Reissue Request.” The process ensures your refund is credited securely to the verified account and helps avoid delays in future refunds.
Table of Contents
Why Income Tax Refunds Fail Due to Bank Validation
Income tax refunds often fail due to errors or mismatches during the bank validation process on the Income Tax e-filing portal. The most common reason is the use of an unvalidated or inactive bank account. The refund system relies on the National Payments Corporation of India (NPCI) and bank integration to transfer funds, so even a small discrepancy can halt the process. Refunds may also fail when the name on the bank account does not exactly match the name on the Permanent Account Number (PAN), or when the PAN-linked bank account has not been updated on the portal. Invalid or outdated IFSC codes, closed accounts, or PAN-Aadhaar linkage issues are other frequent causes. Ensuring that the bank account is active, pre-validated, and correctly linked with the PAN before filing an ITR helps prevent refund delays and failures.
Step-by-Step Guide to Reissue Income Tax Refund After Bank Validation Failure
Reissuing a refund after a bank validation failure involves a structured online process through the Income Tax e-filing portal.
Log in to the Portal: Visit www.incometax.gov.in and sign in using your PAN, password, and captcha code.
Access Profile Section: Click on your profile icon and go to “My Bank Account.”
Add or Update Bank Details: If your existing account failed validation, delete it and add a new one. Enter the correct account number, IFSC code, and account type.
Pre-Validate Account: Use the “Pre-Validate” option. The system verifies details with your bank, ensuring your account is eligible for refunds.
Initiate Refund Reissue Request:
Navigate to ‘Services’ → ‘Refund Reissue’.
Select the assessment year and failed refund.
Choose your newly validated bank account.
Authenticate the request using an OTP or Digital Signature Certificate (DSC).
Receive Confirmation: A success message will appear once your reissue request is submitted.
Track Status: You can monitor the refund reissue status in the ‘Service Request’ or ‘Refunds’ section.
Following these steps ensures the refund is credited to your verified account without further errors.
How to Pre-Validate Bank Account for Refund Processing
Pre-validation is mandatory before any refund can be issued by the Income Tax Department. This verification ensures that the bank account belongs to the taxpayer and matches the PAN record. To pre-validate your account, log in to the portal and go to “My Bank Account” under the profile section. Click “Add Bank Account,” fill in details such as bank name, IFSC code, and account number, and then select “Pre-Validate.” Your bank will authenticate the information through an integrated system with the Income Tax Department. Once successful, your account status will change to “Validated” or “EVC-enabled.” If the validation fails, the reason (e.g., name mismatch or inactive account) will be displayed. Only validated accounts can receive refunds, so revalidation should be done immediately after any update or failure.
Common Reasons for Bank Validation Failure
Several technical and personal data mismatches can lead to bank validation failure. Common causes include:
Name Mismatch: The account holder’s name in bank records differs from the PAN name.
Closed or Dormant Account: The refund cannot be processed to accounts that are inactive or closed.
Incorrect IFSC Code: Even a single incorrect character in the IFSC code can result in failure.
Unlinked PAN: Refunds are blocked if the PAN is not linked to the respective bank account.
Joint Accounts: Refunds cannot be issued to joint accounts where the PAN holder is not the primary account holder.
Inoperative PAN: If PAN is not linked with Aadhaar, it becomes inoperative, stopping refund processing. Regularly updating and validating your bank details ensures smooth transactions and faster refunds.
How to Raise a Refund Reissue Request on the Income Tax Portal
Once your bank account is validated, the refund reissue request can be raised easily through the e-filing portal. After logging in, go to the ‘Services’ tab and select ‘Refund Reissue’. Choose the relevant assessment year in which the refund failed. The portal will display eligible refund requests that can be reissued. Select your pre-validated bank account and proceed. You’ll be asked to confirm your request via OTP (one-time password) sent to your registered mobile number or through DSC for specific users. After submission, a confirmation message appears, and your reissue request will be processed. You can revisit this section anytime to track the progress.
Timeframe and Tracking Refund Reissue Status
After submitting a refund reissue request, the processing time generally ranges between seven to ten working days. The duration may vary depending on the bank’s internal clearance and the Income Tax Department’s verification cycle. To check the status, log in to the e-filing portal, select “View Filed Returns,” and click on “View Details” for the relevant assessment year. You can also view the progress in the “Service Request” tab. Additionally, taxpayers receive email or SMS updates from the Centralized Processing Centre (CPC) or the refund banker, usually the State Bank of India (SBI), once the refund is credited or if there’s any delay.
What to Do if Refund Validation Fails Again
If the bank validation fails repeatedly, the issue often lies in incorrect data or inactive account status. Start by confirming that the bank account is operational and PAN-linked. Verify that your name, as per the bank, matches exactly with your PAN record. If the IFSC code has changed due to bank mergers or branch updates, correct it before revalidation. Some banks require an in-person KYC update before they can validate your account. If the issue persists, contact your bank’s customer service or raise a grievance on the Income Tax e-filing portal under “Grievances → Submit Grievance.” These steps ensure that the next refund attempt succeeds without interruption.
Can Refunds Be Reissued for Previous Assessment Years?
Yes, taxpayers can request refund reissue for previous assessment years as long as the refund remains valid and is not time-barred. The process for older years is identical to the current one. Simply log in, navigate to “Services → Refund Reissue,” and select the relevant assessment year. However, if the statutory period for refund claim has expired under the Income Tax Act, you may need to submit a condonation request under Section 119(2)(b) to seek approval for a delayed claim. The Central Board of Direct Taxes (CBDT) evaluates such cases individually, considering genuine reasons like validation failures or system errors.
Documents and Details Required for Bank Account Validation
Bank validation is an online process that usually requires no physical documentation. However, the following details must be accurate and up to date:
Active savings or current account number
IFSC code and bank name
Account type (savings or current)
PAN-linked bank account
Registered mobile number with the bank for OTP verification
Aadhaar linkage for active PAN status In rare cases where discrepancies persist, taxpayers may be asked to upload supporting documents like a bank passbook copy or canceled cheque for verification.
Latest Updates on Refund Reissue Process (AY 2025-26)
For Assessment Year 2025-26, the Income Tax Department has simplified the refund reissue and validation process through improved portal features. The pre-validation system now uses real-time integration with banks to reduce delays. Notifications are automatically sent to taxpayers if their account becomes inactive or validation fails. CBDT’s new guidelines also ensure that refunds for validated accounts are processed faster, reducing the manual intervention required earlier. Taxpayers are encouraged to validate their bank accounts immediately after filing to prevent refund failures. Enhanced dashboard tracking now displays the validation and reissue status in one place, making it easier for users to monitor progress.
Role of TaxBuddy in Simplifying Refund Reissue and ITR Filing
TaxBuddy offers a streamlined solution for taxpayers facing refund issues, helping them identify validation errors and guiding them through the reissue process. The platform provides automated alerts when a bank validation fails, along with expert-assisted support to revalidate accounts and file reissue requests correctly. It also simplifies the overall ITR filing journey by integrating AI-driven checks to detect potential refund mismatches and pre-fill data for accuracy. Whether using the self-filing mode or expert-assisted service, TaxBuddy ensures that refunds are processed efficiently and without unnecessary delays.
Conclusion
Reissuing an income tax refund after a bank validation failure is a simple yet crucial task that ensures your tax refunds reach the correct account. Keeping bank details updated, validating them before filing, and promptly raising a refund reissue request minimizes errors and speeds up processing. Platforms like TaxBuddy make this process even easier by providing guided support, smart validations, and refund tracking tools that eliminate confusion. For anyone looking for assistance in tax filing, it is recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options? TaxBuddy offers both self-filing and expert-assisted ITR filing plans to cater to different types of taxpayers. The self-filing plan allows users to independently file their returns through a guided, AI-based interface that ensures accuracy and compliance at every step. For individuals who prefer human assistance, the expert-assisted plan connects them with tax professionals who manage the filing end-to-end—right from data collection to submission and verification. Both options include features like refund tracking, tax computation, and support for multiple income sources, ensuring convenience and reliability during the filing process.
Q2. Which is the best site to file ITR? The official Income Tax e-filing portal (www.incometax.gov.in) is the primary government platform for filing ITR in India. However, third-party platforms like TaxBuddy have simplified the process further by integrating automation and real-time assistance. TaxBuddy’s system cross-verifies data, identifies potential errors, and provides deduction recommendations to help taxpayers save time and file accurately. Unlike the government portal, which may feel technical to some users, TaxBuddy combines user-friendly navigation with AI-driven accuracy, making it one of the best platforms for individuals and professionals seeking a smooth, error-free filing experience.
Q3. Where to file an income tax return? Income tax returns can be filed directly on the Income Tax Department’s official e-filing portal or through authorized tax filing platforms like TaxBuddy. The government portal is suitable for those who are familiar with the filing process, while platforms like TaxBuddy are ideal for users seeking a guided experience. With TaxBuddy, users can upload Form 16, link bank accounts, validate PAN details, and even get expert assistance without navigating complex menus. Both options are valid, but using a professional platform ensures that deductions, exemptions, and refund eligibility are accurately computed before submission.
Q4. How do I know if my refund failed due to bank validation issues? When a refund fails because of bank validation problems, the Income Tax Department or the State Bank of India (the refund banker) notifies the taxpayer via email and SMS. The message specifies the failure reason—such as an invalid IFSC, inactive account, or name mismatch. You can also log in to the Income Tax e-filing portal, go to “View Filed Returns,” and click “View Details” for the relevant year. The status will show as “Refund Failed” or “Refund Returned.” Once identified, the issue can be resolved by updating and revalidating the correct bank details under “My Bank Account” before submitting a refund reissue request.
Q5. Can I reissue my refund if I missed verifying my ITR? If your ITR is not verified within 30 days of submission, it is treated as invalid, and any refund associated with it will not be processed. To resolve this, you must submit a condonation request for late verification through the e-filing portal under “Services → Condonation Request.” Once the request is approved and the return is verified successfully (via Aadhaar OTP, DSC, or EVC), the refund reissue process can proceed. It’s important to complete verification within the time limit to avoid delays or the need for re-filing.
Q6. How long does it take for the refund after reissue? After submitting a refund reissue request and ensuring successful bank validation, the Income Tax Department typically processes the refund within 7–10 working days. However, this period can vary depending on the bank’s internal clearance timeline and the CPC’s processing queue. Taxpayers receive updates via email or SMS once the refund is initiated or credited. If no update is received within two weeks, you can check the refund status through the e-filing portal or the TIN-NSDL (now Protean) website using your PAN and assessment year details.
Q7. Can I change my bank details multiple times for refund purposes? Yes, taxpayers can change their bank details multiple times until the refund is successfully processed. Each time a new bank account is added, it must be pre-validated through the Income Tax portal. Only a PAN-linked and successfully validated account will be accepted for refund reissue. This flexibility allows taxpayers to update their account if their previous one becomes inactive, closed, or fails validation. However, only one active, validated account can be used for receiving refunds at a time, so it’s advisable to verify the correct one before filing.
Q8. What should be done if refund validation fails repeatedly?
If the refund validation fails more than once, it’s essential to identify the exact cause. Check whether your bank account is active, correctly entered, and linked to your PAN. Ensure that the account holder’s name exactly matches the PAN name, as even minor discrepancies can cause failure. If your bank has merged or changed its IFSC code, update it before revalidation. You can also contact your bank for clarification and raise a grievance on the Income Tax e-filing portal under “Grievances → Submit Grievance” with screenshots of the error. Persistent validation issues can also be resolved with assistance from TaxBuddy’s expert team, who help ensure compliance and correct linkage.
Q9. Is it necessary to link PAN with Aadhaar before applying for refund reissue? Yes, linking PAN with Aadhaar is mandatory under current Income Tax laws. An unlinked PAN is treated as inoperative, which means the taxpayer cannot file returns, receive refunds, or perform certain financial transactions. Before applying for a refund reissue, ensure that your PAN is active and linked with Aadhaar. The linking status can be checked on the Income Tax portal, and any pending linkage can be completed by paying the prescribed late fee through e-Pay Tax. Once the PAN becomes active, you can proceed with refund reissue without restriction.
Q10. Can refunds be credited to joint accounts? Refunds can only be credited to bank accounts where the PAN holder is the primary account holder. If a joint account is used, it must be linked to the PAN of the taxpayer claiming the refund. In cases where the primary account holder is someone else, validation will fail. For smoother processing, it’s recommended to use a single-owner account or ensure that the joint account’s first holder is the PAN-linked individual. This policy is designed to prevent miscrediting and enhance refund security.
Q11. What are the common causes for refund rejection? Refund rejections commonly occur due to data mismatches or invalid banking information. Typical reasons include incorrect or outdated IFSC codes, closed or dormant accounts, mismatched names between PAN and bank records, and non-PAN-linked accounts. Refunds may also be rejected if the account was not pre-validated or if the PAN is inoperative due to missing Aadhaar linkage. In some cases, technical errors during bank integration may lead to rejection, which can be rectified by revalidating the account and resubmitting the reissue request. Reviewing your refund status regularly ensures timely correction before deadlines.
Q12. How does TaxBuddy simplify the refund reissue process? TaxBuddy simplifies the refund reissue process by offering real-time monitoring, automated validation checks, and expert-led support. Its AI-driven system alerts users when refunds fail due to bank issues and provides guided steps to revalidate accounts directly from the dashboard. For complex cases—such as repeated validation failures or condonation requests—TaxBuddy’s experts handle the process end-to-end. The platform also integrates refund tracking, filing history, and document management in one interface, ensuring complete transparency. This makes TaxBuddy an ideal solution for taxpayers seeking a secure, efficient, and stress-free refund experience.
