Filing your Income Tax Return (ITR) on time ensures compliance and allows you to claim a refund if excess tax has been deducted. However, many taxpayers in AY 2024-25 and AY 2025-26 are facing income tax refund delays. If your refund is stuck, you are not alone. Let’s understand the reasons behind the delay, how to check the refund status, and the steps to fix it.
✅ Common Reasons for Income Tax Refund Delay
1. Technical Glitches on Income Tax Portal
- The income tax e-filing portal (incometax.gov.in) often faces login errors, slow speed, and payment glitches, especially near the ITR filing last date.
- This results in delays in ITR processing and refund credit.
2. Mismatch in Tax Data
- Any mismatch between your ITR, Form 26AS, AIS (Annual Information Statement), or TIS can hold back refunds.
- Common mismatches:
- TDS is not reflecting properly
- Interest income missing
- Capital gains were not reported correctly
3. High Filing Volume Near Deadline
- Most people file their ITR just before the last date (July 31 / October 31).
- The huge volume creates a backlog for the Income Tax Department, delaying refunds.
4. Scrutiny or Additional Verification
- If your refund is high compared to your declared income, the Income Tax Department may put it under scrutiny before issuing.
- Refunds are released only after 143(1) intimation or verification.
5. Unverified or Incorrect Bank Account
- Refunds are credited only to pre-validated bank accounts.
- Issues like inactive accounts, wrong IFSC, or non-validation cause delays.
6. Delay in E-Verification of ITR
- Your ITR must be e-verified using Aadhaar OTP, Net Banking, or DSC.
- Delay in e-verification = delay in refunds.
7. CBDT Prioritisation
- The CBDT (Central Board of Direct Taxes) sometimes prioritises smaller refunds first.
- Business returns or complex filings may take longer.
8. Compliance Notices
- If you receive a notice under Section 139(9) or 143(1), the refund will be held until you respond.
How to Check Income Tax Refund Status
You can easily check your refund status in two ways:
1. On Income Tax e-Filing Portal (incometax)
- Log in with PAN & password
- Go to e-File → Income Tax Returns → View Filed Returns
- Select the relevant AY and check the refund status
2. On NSDL Refund Status Portal (tin.tin.nsdl.com)
- Enter your PAN & Assessment Year
- Refund status will be displayed instantly
What to Do If Your Income Tax Refund Is Delayed
- Verify Bank Account: Ensure your bank account is pre-validated on the income tax portal.
- Check Form 26AS & AIS: Make sure there is no mismatch between declared income and reported data.
- Track Refund Online: Regularly check refund status on incometax.gov.in or NSDL portal.
- Respond to Notices: If you received a compliance notice, respond immediately.
- Refund is delayed for more than 3-4 months. Raise a grievance on the e-filing portal or contact CPC Bangalore.
Key Takeaways
- Income Tax refund delays are mainly due to portal glitches, data mismatch, high filing volume, or unverified bank details.
- Always e-verify your ITR quickly and ensure that the correct bank details are updated.
- Refunds usually take 20-45 days, but complex cases may take longer.
- Check the status regularly, correct errors, and respond to queries from the department.
