Tax refund blues: Delays worry filers as ITR season picks pace; key tips to track refunds

The ITR filing season for AY 2025-26 began later than usual, causing delays for many taxpayers. Although ITR-1 and ITR-4 utilities were released by late May, the Income Tax Department has now launched the Excel utilities for ITR-2 and ITR-3 for AY 2025-26 as of Friday. Taxpayers can download these new forms to file their returns for FY 2024-25 and use the updated Excel utilities to complete and submit their filings well before the deadline.  

Across social media and tax help forums, taxpayers are voicing frustration over delayed tax refunds. Even those who filed weeks ago haven’t received the refunds. Such delays can stem from system upgrades, incomplete filings, or banking issues. Amid this uncertainty, it’s crucial to know how to track refund status and what steps to take if the money doesn’t arrive on time. Staying proactive helps ensure refunds don’t remain stuck in the system longer than necessary.  

If your tax refund feels overdue, first check its status. Log in to the Income Tax Department portal at incometax.gov.in, navigate to ‘Refund/Demand Status,’ and view your details. Alternatively, use the NSDL website, where entering your PAN and assessment year can display refund updates. If the portal shows your refund issued but your bank account remains empty, double-check your bank account details for errors. Sometimes, payment delays arise from unverified bank details or processing lags at SBI, the refund disbursing bank.  

Several factors cause tax refunds to stall. This year, a major reason is the Income Tax Department’s ongoing system upgrades following the 2024 budget, which involves updating tax slabs and compliance rules. Another frequent problem is errors in the ITR itself—like incorrect details, undisclosed income, or failing to verify bank accounts. Such mistakes prevent returns from getting processed, keeping refunds stuck. Staying precise and thorough while filing your return can prevent these unnecessary delays.  

If your ITR shows processed but the refund hasn’t arrived, it’s time to raise a complaint. Visit the e-Nivaran portal or CPGRAMS, where you can lodge grievances under “Refund not received.” Enter details like PAN, assessment year, acknowledgement number, and your contact info for faster resolution. If your issue remains unresolved after 15-20 days, escalate it to a senior officer through CPC-Bangalore, the regional IT office, or even the IT Department’s official social media channels for further assistance.  

Want your refund sooner? File your ITR quickly and complete e-verification immediately—it’s crucial because returns remain unprocessed without it. Choose the correct ITR form based on your income type: salaried individuals should use ITR-1, while business owners may need ITR-3 or ITR-4. Pre-validate your bank account on the income tax portal to avoid payment glitches. And keep checking your refund status every week or so. Acting fast on errors ensures your refund isn’t unnecessarily delayed.  

Good news for taxpayers this year: the ITR filing deadline has been extended to 15 September 2025, instead of the usual 31 July. Experts say this extra time can be valuable, letting you file more accurately and possibly avoid errors that could delay your refund. Moreover, if your refund is delayed despite timely filing, you might earn interest on the refund amount under Section 244A of the Income Tax Act. So, a longer timeline could mean a little extra money in your pocket.  

Amid system upgrades and complex rules, tax refund delays are frustrating but manageable. The key is staying proactive: check your refund status regularly, ensure your bank details are verified, and correct any filing errors fast. Use grievance portals if delays persist, and don’t hesitate to escalate if issues remain unresolved. With the filing deadline extended and potential interest on delayed refunds, informed taxpayers can protect both their time and money this assessment year.