ITR Processed but Refund Not Issued: What’s Next
- Nimisha Panda
- 1 day ago
- 8 min read
When an Income Tax Return shows the status “Processed” but the refund still hasn’t arrived, it usually means the tax department has completed verification and computed the refund, but the credit has not reached the bank account. This delay often arises from incorrect bank details, a mismatch in tax records, or pending verification at the Centralised Processing Centre. Refunds can also be held up due to a failed transaction at the bank’s end, even when everything appears correct on the portal. Understanding these reasons helps identify the next steps and prevents unnecessary panic.
Table of Contents
Understanding What “ITR Processed but Refund Not Issued” Means
When the ITR status shows “Processed,” it confirms that the Income Tax Department has reviewed the return, tallied the figures, and finalized the computation. However, this status does not mean the refund has already been released to the bank. The processing step simply indicates that the return is correct and a refund is due. The actual credit takes place only after the refund is pushed through the banking network. At this stage, delays may appear due to bank validation checks, mismatched details, or internal clearance processes at the Centralized Processing Centre.
Common Reasons Why Refund Is Delayed After ITR Is Processed
Refunds often get delayed for predictable reasons. Incorrect bank details—especially an invalid IFSC code or wrong account number—are among the most common causes. A mismatch in TDS or tax statements may trigger internal verification and slow down the release. Refund failure at the bank level, network issues, or delays in settlement by the refund banker can also hold up the payout. At times, CPC may face a backlog, leading to slower dispatch even after successful ITR processing. These issues are routine and usually easy to resolve once identified.
How to Check Refund Status on the Income Tax Portal
The Income Tax portal provides a dedicated section to verify refund status. After logging in, navigating to “Refund/Demand Status” displays the exact stage of the refund—whether paid, failed, pending, or reissued. This section also notes dates, reference IDs, and failure reasons (if any). The status helps in determining whether action is required or if the refund is simply waiting for clearance. Checking this section before taking further steps ensures clarity and prevents unnecessary follow-ups.
Steps to Take When ITR Refund Is Not Credited
The first step is to check whether the bank account used for refund is validated on the portal. If validated but not credited, verifying the refund status helps understand whether it was sent, failed, or held. A refund that shows as “sent to bank” but not received generally indicates a delay at the bank’s end. If a failure code appears, a refund reissue request must be raised. When no obvious issue is visible, contacting the refund banker or the CPC support line offers clarity. TaxBuddy users often track these steps easily with guided instructions to reduce guesswork.
Raising a Refund Reissue Request Through the Portal
A refund reissue request becomes necessary when the initial attempt fails due to technical or validation errors. Once bank details are corrected and revalidated, the portal allows submission of a request for reissue. This triggers a fresh review and dispatch of the refund. The process requires navigating to the “Refund Reissue” section, selecting the assessment year, and confirming the preferred bank account. Once submitted, the request typically takes a few days to reflect in the system, after which the refund is credited if validation is successful.
Bank Account Validation Issues and How to Fix Them
Refunds can only be issued to bank accounts that pass the e-filing portal's validation check. Accounts fail due to incorrect account numbers, mismatched name details, or inactive status. To fix this, the taxpayer must update the correct account number and IFSC code under “My Profile → Bank Account” and ensure the account is prevalidated. The portal verifies ownership through PAN-linked details and confirms whether the bank supports refund processing. Only after successful validation does the refund move to the credit stage.
How Tax Data Mismatches Delay Refunds (TDS, Form 26AS, AIS)
Refunds may be delayed when the tax department detects inconsistencies between reported income, TDS entries, and information recorded in Form 26AS or AIS. Even minor differences can lead to internal verification, pushing the refund into a pending stage. Common mismatches include employers updating TDS late, deductors entering wrong PAN details, or interest income not matching AIS entries. Ensuring all forms reconcile before filing reduces the risk of such delays. Many taxpayers use services like TaxBuddy to validate AIS and 26AS accuracy and avoid refund hold-ups.
Refund Failure Codes and How to Interpret Them
Refund failure codes help identify the exact cause of the delay. Codes like “RFD-01” indicate mismatched bank details, while “RFD-02” points to an inactive or closed account. Some codes highlight technical reasons such as incorrect account type or validation mismatch. These codes appear in the refund status section and determine the next step—usually updating bank details or raising a reissue request. Understanding these codes prevents confusion and ensures quick corrective action.
When to Contact CPC or the Bank for Refund Issues
If the portal shows that the refund has been sent but the account does not reflect any credit even after several days, it may be a banking delay. In such cases, contacting the refund banker (State Bank of India for most refunds) or the home branch helps identify the blockage. Meanwhile, if the refund has not been dispatched or shows an unclear status, CPC Bengaluru provides clarification through its helpline. Engaging with these support channels is useful when the portal status alone does not explain the delay.
How Long Does It Take to Receive Refund After ITR Processing?
Refunds are usually credited within 15 to 30 days after the ITR is processed. The timeline may extend if bank validation is pending or if internal cross-verification is required. Delays can also occur during peak filing months when refund volumes increase significantly. While most refunds arrive within the standard window, cases involving verification mismatches or failure codes may require additional steps and a longer wait.
Preventing Refund Delays for Future ITRs
Timely validation of bank details, careful reconciliation of Form 26AS and AIS, and accurate reporting of income ensure smoother refunds in future years. Filing returns early also helps avoid seasonal delays at CPC. Using platforms like TaxBuddy enables taxpayers to detect mismatches early and complete filing with greater accuracy. Maintaining updated personal details on the portal further minimizes the risk of refund-related complications.
Conclusion
Tax refunds often take extra time even after the ITR reaches the processed stage, generally due to correctable issues involving bank details or mismatched tax records. Ensuring validation, checking refund status regularly, and initiating reissue requests when needed help resolve most delays smoothly. For anyone looking for assistance in tax filing, it is highly 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 supports both self-filing and expert-assisted filing, allowing taxpayers to choose what fits their situation best. The self-filing option works well for simple tax profiles where automated checks, form prefill, and instant validation are sufficient. For those dealing with multiple income sources, capital gains, rental income, or complex deductions, the expert-assisted route ensures a qualified professional reviews the details, prepares the computation, and files the return after resolving any discrepancies. This flexibility helps different types of taxpayers file accurately without worrying about missed entries or mismatched information.
Q2. Which is the best site to file ITR? The government’s Income Tax portal remains the official platform for filing, but many taxpayers prefer using guided platforms for ease and accuracy. A service like TaxBuddy offers automated verification, real-time TDS matching, and professional support, which reduces the chance of errors and notices. These added layers often make third-party platforms more convenient, especially for individuals who want a faster and more reliable filing experience.
Q3. Where to file an income tax return? Returns can be filed on the Income Tax e-filing portal, which is open to all taxpayers. Those who want a simpler interface or additional support can use platforms like TaxBuddy, where AI tools, document organisation, and expert oversight help streamline the entire process from uploading Form 16 to receiving the final acknowledgment.
Q4. What should be done if ITR is processed but the refund is not credited? Refund delays typically happen due to issues like incorrect bank details, failed validation, or mismatches in tax data. The next step is to check refund status on the portal, verify whether the bank account is validated, and identify if any refund failure code is shown. If the system reflects a failed attempt, a refund reissue request must be submitted. In cases where payment has been released by the department but the credit is pending, contacting the refund banker or the home branch resolves the matter.
Q5. How long does it take to receive a refund after the ITR is processed? Refunds are generally credited within 15–30 days after the processing is completed. The timeline may vary if bank-level validation is pending or if the Centralized Processing Centre is handling a large volume of returns. Delays due to mismatches in Form 26AS or AIS can extend the wait until the department finishes its verification.
Q6. Why does the refund show as ‘processed’ but not reach the bank? A refund marked as processed means the computation is final, but the transfer isn’t complete. The refund may be waiting for clearance with the refund banker, or it may have failed due to incorrect account details. Sometimes the refund is initiated but put on hold due to name mismatch or inactive accounts. Checking the refund status section reveals the exact cause.
Q7. How can bank account details be corrected for refund credit? The Income Tax portal allows taxpayers to add or update bank accounts under the profile section. Once the correct account number and IFSC code are entered, the system performs a validation check with the bank. Only validated accounts receive refunds. If earlier refunds failed due to incorrect details, updating them and submitting a refund reissue request ensures the amount is routed correctly.
Q8. What happens if a refund fails due to incorrect account information? When a refund fails, the system generates a refund failure code explaining the reason. The taxpayer must fix the details and initiate a refund reissue request. Once the correct bank account is validated, the department reprocesses the request and sends the refund again. Addressing the failure quickly prevents longer delays.
Q9. Can a refund reissue request be submitted online? Yes. The portal provides a dedicated section for refund reissue. After correcting and validating bank details, a reissue request can be submitted for the relevant assessment year. The process is entirely online and requires no physical documents. This feature is especially helpful when the initial refund attempt did not succeed.
Q10. Why do mismatches in Form 26AS or AIS affect refunds? The Income Tax Department cross-checks the figures reported in the return with the data available in Form 26AS, AIS, and TIS. If any number differs—for instance, TDS claimed is more than what the deductor reported—the system places the case under verification. Refunds are withheld until the discrepancy is resolved. Ensuring that all tax credits match before filing prevents such stoppages.
Q11. Who should be contacted if the refund shows ‘sent’ but is not received? When the portal confirms that the refund was sent, but the bank account shows no credit, the delay is typically on the banking side. The refund banker (usually SBI) or the taxpayer’s own bank branch can clarify the status. If the refund status is unclear or no dispatch is shown, CPC Bengaluru’s helpline provides support.
Q12. How can future refund delays be avoided? Accurate income reporting, timely reconciliation of AIS and 26AS, proper bank validation, and early filing help eliminate most refund issues. Using intelligent filing platforms such as TaxBuddy ensures errors are caught before submission, reducing the chances of refund hold-ups in later stages.
