Your income tax refund may be delayed due to this issue; what you can do about it

Taxpayers who were not required to undergo an income tax audit had to file their income tax returns (ITRs) by September 16, 2025. Many who filed before the deadline have already seen their returns processed quickly, especially in cases where refunds were small or where simpler forms like ITR-1 or ITR-2 were used.

However, several taxpayers with larger refund claims are still waiting. This has raised concerns about possible delays, their causes, and the remedies available.

> Why is my income tax refund delayed this year?

Although all refunds are processed under the same rules, larger refund amounts may sometimes undergo additional verification. This does not mean the refund is denied — only that the department conducts extra checks before releasing funds.

Returns are also processed in batches. Simpler forms like ITR-1 and ITR-4 tend to be cleared faster, while more complex returns such as ITR-2 and ITR-3 may take longer. As of September 23, more than 7.57 crore ITRs had been filed. Of these, 6.87 crore were verified and 5.01 crore processed. This still leaves nearly 1.86 crore returns pending, with refunds yet to be credited.

Importantly, delays are not limited to high-value refunds. Even small refunds under Rs 10,000 have sometimes been delayed, while in other cases they have been credited on the same day as e-verification.

Another common reason for delay is data mismatches. If details reported in the ITR do not match Form 26AS, AIS, or TIS, the system may flag the return and trigger adjustment notices. Refunds can only be released once the discrepancies are resolved.

Other reasons include:

E-verification not completed within 30 days of filing.

Unvalidated bank accounts not linked with PAN.

Outstanding tax dues, which can be adjusted against refunds under Section 245(1).

PAN–Aadhaar linkage issues or unusually high deduction claims that need review.

What happens if refunds are delayed

When refunds are delayed, taxpayers may be entitled to interest under Section 244A of the Income Tax Act. For refunds arising from TDS, TCS, or advance tax, the I-T department pays 0.5% interest per month or part of the month, calculated from April 1 of the assessment year.

For example, if a refund of ₹10,000 is due and the department delays payment by six months (April to September), an additional ₹300 would be paid as interest.

Refunds arising from self-assessment tax are also eligible for interest at 0.5% per month, calculated from the later of the filing date or payment date until the refund is issued. However, no interest is payable if the refund is less than 10% of the total tax determined.

What taxpayers can do

If a refund is delayed beyond a few weeks of e-verification, taxpayers should log in to the income tax portal to check the refund or demand status. Ensuring that the bank account is pre-validated and responding promptly to any mismatch notices is critical.

If the issue persists, taxpayers can:

File an online grievance under the “Refund” category on the e-filing portal.

Contact the CPC helpline using PAN details.

Raise issues via social media or escalate through CPGRAMS for persistent delays.

With over 20 crore refunds already processed this year, most taxpayers can expect quicker resolutions. Yet, given the scale of filings and multiple verification checks, patience — along with proactive follow-up — remains key for those still waiting.