Income Tax Refund Delayed? Here are the Reasons why your ITR Refund Not Received Yet

The income tax filing (ITR) deadline of September 16, 2025, has recently passed, and many taxpayers are now keen to know about their income tax refund status. Once your return is submitted, the Income Tax (I-T) Department first checks and processes the details before issuing any refund. If everything is in order, the refund will move to your bank account. However, in cases where the department finds errors or mismatched information, you may receive a notice or communication asking for clarification. Only after the response is submitted and approved can the refund process continue smoothly.

What is an income tax refund?

An income tax refund is the amount returned to taxpayers when they have paid more tax than their actual liability during a financial year. This typically occurs due to deductions, exemptions, or errors in tax calculations. For example, if you paid Rs. 50,000 as tax but your liability was only Rs. 40,000, the excess Rs. 10,000 would be refunded to you. Tax refunds are issued only after filing your Income Tax Return (ITR) and verification by the Income Tax Department.

In how many days, can you get a refund after filing ITR?

The time taken to receive a refund after filing your Income Tax Return (ITR) depends largely on how quickly it is e-verified and whether the details provided match the records available with the Income Tax (I-T) Department. Once you successfully e-verify, the processing of your return begins. In straightforward cases, the refund is usually credited to your bank account within two to five weeks. In fact, in some simple cases, refunds may even arrive within a week of verification.

Experts highlight that the speed of refund issuance has improved greatly in recent years. For many individuals filing basic returns with no complications, the refund comes through quickly, provided the information in your return matches the details available on the income tax portal, such as those in AIS, TIS, and Form 26AS.

However, for cases involving business income, capital gains, or multiple deductions, the system may carry out additional checks. This can extend the processing time to around two to four weeks. Likewise, situations involving mismatches in tax deducted at source (TDS) data, large refund amounts, or returns selected for more detailed review may also cause delays.

If your refund does not arrive within the expected timeframe, it is advisable to log in to the e-filing portal and check your refund status. You should also carefully read any intimation or notice sent by the Income Tax (I-T) Department, as they may highlight discrepancies that need to be corrected. Ensuring accurate information and verifying bank, PAN, and Aadhaar details can prevent unnecessary delays and help you receive your refund faster.

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No refund on ITR AY 2025–26 until Income Tax Department completes investigation on your filing

The Income Tax Department plays a crucial role in processing refunds, ensuring accuracy and compliance with tax regulations. For AY 2025–26, refunds are being withheld due to ongoing investigations into discrepancies or mismatched data in taxpayers’ filings. Common causes for these investigations include:

• Mismatched PAN and Aadhaar details: Errors in linking PAN with Aadhaar can delay verification.
• Pending filings or declarations: If previous years’ returns are incomplete, refunds may be paused.
• Incorrect bank details: Refunds cannot be processed if bank account information is outdated or incorrect.

The Department’s focus on data accuracy is aimed at preventing fraud and ensuring transparency in the refund process.

Your ITR processing and tax refunds may take time this year – know why

Refund processing for AY 2025–26 is slower due to several factors. These include:

1. Implementation of new tax reforms: Changes to tax laws and procedures require system updates, which can delay processing.
2. Enhanced scrutiny: Increased focus on compliance and fraud prevention has led to more thorough verification of returns.
3. Technical upgrades: The Income Tax Portal is undergoing updates to improve user experience, which may temporarily affect refund timelines.

Pro-tip: To avoid delays, ensure your filings are accurate and complete. Double-check your bank details and keep your contact information updated.

Refunds will be given only after reviewing the old returns

The Income Tax Department is reviewing past returns before processing refunds for AY 2025–26. This step ensures that unresolved discrepancies from previous assessment years are addressed. Common issues include:

• Unpaid tax dues: Refunds may be withheld if there are pending dues from earlier years.
• Incomplete documentation: Missing forms or incorrect declarations can cause delays.
• Discrepancies in reported income: If income reported in past years does not match current filings, refunds may be paused.

While this process may seem inconvenient, it reflects the Department’s commitment to maintaining a transparent and fair tax system. Taxpayers can expect resolution timelines to vary based on the complexity of their cases.
 

What should taxpayers do?

If you are experiencing delays in receiving your refund, here are some practical steps you can take:

1. Check your refund status: Log in to the Income Tax Portal and track your refund status regularly.
2. Verify bank details: Ensure your bank account information is accurate and updated.
3. File without discrepancies: Double-check your ITR for errors before submitting.
4. Respond to notices promptly: If the Department requests additional information, provide it without delay.
5. Contact support: Use the helpline or grievance system for assistance if your refund is delayed.

Following these steps can help you navigate the refund process more effectively.

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Reasons why the refund is delayed and how to handle it

By addressing these issues proactively, taxpayers can minimise delays and ensure smoother refund processing.

What to do if you have not received the refund yet

If your refund for AY 2025–26 is still pending, follow these steps:

1. Log in to the Income Tax Portal: Check your refund status under the "Refunds" section.
2. Verify filings: Ensure your ITR is complete and free of errors.
3. Update bank details: Double-check that your bank account information is correct.
4. Contact the helpline: Reach out to the Income Tax Department’s support team for assistance.
5. File a grievance: Use the grievance redressal system on the portal to report issues with your refund.

Taking these steps can help you resolve delays and receive your refund sooner.

How to check your refund status on the Income Tax Portal

Checking your refund status is simple and can be done online. Here is a step-by-step guide:

1. Visit the Income Tax Portal.
2. Log in using your PAN and password.
3. Navigate to the "Refunds" section under "My Account."
4. Enter the assessment year (AY 2025–26) and view your refund status.
5. If your refund is processed, the portal will display the payment details.

Ensure you regularly check your refund status to stay updated on its progress.

What are the different types of ITR statuses?

When you file your ITR, the status on the income tax portal shows the stage of processing. Understanding these terms helps you track the progress of your return and identify if action is required.

• Submitted and pending for e-verification: This status means you have filed your return but not completed e-verification, or the signed ITR-V has not reached the Central Processing Centre (CPC).

• Successfully e-verified: Here, your return has been verified but not yet processed by the department.

• Processed: This indicates the return has been checked and successfully processed.

• Defective: A “defective” status arises if your return has missing details or inconsistencies. In such cases, you’ll receive a notice under Section 139(9), asking you to correct the issues within a set timeframe. If you don’t respond, your return will be treated as invalid and will not be processed further.

• Case transferred to assessing officer (AO): Sometimes, the CPC transfers your return to your local AO for further checks. If this happens, you will be contacted by the officer and asked to share additional information or documents.

By checking your status regularly, you can stay informed about the next steps required.

What happens if your income tax refund is above Rs 50,000?

Refunds do not have an upper cap, so even if your refund is more than Rs. 50,000, it will be credited to your bank account just like smaller refunds. However, the Income Tax (I-T) Department often carries out additional verification for larger refunds to ensure accuracy and prevent errors. This may lead to a short delay compared to smaller amounts. To avoid complications, always confirm that your PAN, Aadhaar, and bank details are accurate and up to date in your ITR. Correct details help ensure that the refund is processed and transferred without unnecessary hurdles.

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When can you claim a TDS refund?

A Tax Deducted at Source (TDS) refund can only be claimed when you file and e-verify your ITR for the relevant financial year. The refund arises if the TDS deducted from your income is higher than the tax actually payable as per your return. Before filing, it’s important to review your Form 26AS to ensure all TDS details match correctly. If you notice errors in the entries, you should contact the deductor to make corrections before submitting your return. Only after your ITR is successfully filed and verified will the Income Tax (I-T) Department process the refund.

What is the maximum amount for a tax refund?

There is no maximum limit on the amount you can receive as an income tax refund. Any excess tax you have paid—whether through advance tax, TDS, or self-assessment—will be returned to you after your ITR is processed. If your refund is delayed, the Income Tax (I-T) Department also pays interest at 0.5% per month on the due amount until it is credited. This ensures that taxpayers are compensated for the waiting period. The key to avoiding unnecessary delays is accurate filing, proper verification, and ensuring that your bank details are correctly provided in your return.

Conclusion

Delays in income tax refunds for AY 2025–26 may be inconvenient, but they reflect the Income Tax Department’s commitment to accuracy and transparency. By taking proactive steps, such as verifying filings and updating bank details, taxpayers can minimise delays and ensure smoother refund processing. If you are facing issues, use the Income Tax Portal to check your status or contact support for assistance. Remember, a well-maintained tax record can help you avoid future refund delays and streamline your financial planning.

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