Why your income tax refund isn’t credited even after 5 months. What you can do about it

Recently, several taxpayers have taken to social media to complain that their income tax refunds are yet to be credited — even five months after filing their Income Tax Returns (ITRs). While refund delays are not uncommon, this year the Income Tax Department has tightened scrutiny, leading to longer processing times for many returns. 

If you are still waiting for your refund, here’s what may be causing the delay and how you can fix it. 

Why are refunds getting delayed? 

Income tax refunds are typically delayed when returns are not fully processed or when the tax department detects mismatches or non-compliance in the filing. 

One of the most common reasons is failure to verify the ITR after filing. Filing the return is only the first step. Taxpayers must verify it using Aadhaar OTP, net banking, EVC, or by sending a signed ITR-V to the Centralised Processing Centre (CPC), Bengaluru. An unverified return is treated as invalid, and no refund is issued. 

This year, however, refund delays have increased as the Income Tax Department has intensified checks on inconsistencies in filings. If the income declared in your return does not match details in Form 26AS, the Annual Information Statement (AIS), or the Taxpayer Information Summary (TIS), the return is flagged, delaying the refund. 

Refunds may also be held up due to: 

• Outstanding tax demands 
• Notices issued under Section 143(1) of the Income Tax Act, 1961 
• Incorrect or inactive bank account details provided in the return 

What should taxpayers do? 

The first thing to remember is there is no need to panic if your refund is delayed. Start by logging into the income tax e-filing portal and checking the “Pending Actions” section for any notices or communications from the department. 

If an intimation has been issued, download it and carefully compare it with your filed return, Form 26AS, and AIS. If the department’s assessment is correct, accept it. If you find an error, you can respond online and raise a grievance with valid supporting documents. 

How to track your income tax refund 

You can also track your refund status separately by following these steps: 

1. Visit the Income Tax India e-filing website 
2. Log in using your PAN (User ID), password, and captcha code 
3. Go to ‘View Returns / Forms’ 
4. Select ‘Income Tax Returns’ from the drop-down menu 
5. Enter the assessment year and submit 
6. Click on the relevant ITR acknowledgement number to check your refund status 

With enhanced scrutiny now the norm, experts advise taxpayers to ensure accurate income reporting, timely verification, and regular monitoring of portal notifications to avoid prolonged refund delays.