Income Tax returns filing has seen monumental improvements in recent years. It has been completely digitized in recent years, offering greater convenience to the crores of Indian citizens filing their income tax returns. Taxpayers are updated of their income tax returns status at every step. And in some cases, you could be eligible for an Income Tax Refund.  

Tax refund is where a taxpayer has paid more tax (through TDS, TCS or advance tax) than what he/she is required to pay. If your tax liability is only Rs. 8,000 but you have paid Rs. 10,000 in taxes, then the excess of Rs. 2,000 will be refunded to you. The Income Tax Department usually processes refunds between 7-120 days after the processing of return but there could be some factors causing delays. 

If you have filed your income tax returns and are expecting a considerable amount in income tax refunds, delays in such refund can be frustrating. Understanding the common reasons for income tax refund delays will help you take the necessary remedial steps to get your refund back on track.  

Click here to read about Filing Income Tax Returns 

What Are Some Common Reasons for Income Tax Refund Delays? 

Below are some of the usual scenarios due to which you may experience delays in receiving your Income Tax refund. Of course, each case may be different and require specific remedies to fix them. It is advised to fix these issues immediately so that the refund is not delayed any further.  

Reason Category 

Primary Reasons 

Impact 

Bank Account Issues 

  • Incorrect bank account number provided during filing 

  • Bank account not pre-validated on the income tax portal 

  • Mismatch between account holder's name and PAN details 

  • Inactive or dormant bank account 

  • Wrong IFSC code mentioned in tax return 

  • Joint account provided instead of individual account 

  • Bank account closed or transferred to different branch 

Refund transfer gets rejected; needs to be requested again for reissue  

Solution: Validate bank account on the portal. Update the correct details, request refund reissuance if needed.  

Documentation & Filing Issues 

  • Mismatch between TDS claimed and Form 26AS 

  • Incomplete or incorrect ITR form submission 

  • Missing or incorrect verification after filing 

  • Discrepancy in income declaration 

  • Wrong assessment year selection 

  • Failure to report all bank accounts 

  • Incorrect tax credit claims 

Return is marked for Scrutiny or Re-verification.  

 

Solution: Reconcile Form 26AS, Rectify Discrepancy, Respond to Tax Notices in Time 

 

Technical & Processing Issues 

  • High volume during peak filing season 

  • System processing delays 

  • Technical glitches in the tax portal 

  • Pending verification from previous employer 

  • Server timeout during processing 

  • Data synchronization issues 

  • Delayed processing of revised returns 

Processing time delayed.  

 

Solution: Wait for the system to process the returns. Check status frequently. Raise a grievance if it takes more than 3 months 

 

Compliance & Legal Issues 

  • Return selected for scrutiny assessment 

  • Pending tax demands from previous years 

  • Legal holds on PAN or account 

  • Mismatch in tax payment records 

  • Investigation flags on transactions 

  • Incomplete response to tax notices 

  • Outstanding tax liabilities 

Refund on hold until further clarification  

 

Solution: Clear pending demands and respond to outstanding notice. Submit documentation requested.  

 

Interesting Read: How to Calculate Your Income Tax?  

My Income Tax Refund Is Delayed - What Should I Do?  

1. First, check Your Income Tax Refund Status 

The refund status gives us a clarity on which step the refund status is at. So, first check the refund status and take necessary action.  

  • Log in to the income tax e-filing portal 

  • Navigate to 'e-File' > 'Income Tax Returns' > 'View Filed Returns' 

  • Select the relevant assessment year for which you are expecting refund.  

  • Check the current status of your return and refund.  

  • Understand what the status means (refer to our section above), and take necessary action to remedy the situation.  

2. Verify Bank Account Details 

  • On the homepage of your Income Tax portal, check the bank account details you have entered.  

  • Ensure your bank account is pre-validated 

  • Confirm the account number and IFSC code are correct 

  • Check if your name in bank records matches your PAN card 

3. Review Your Tax Return 

  • Recheck your filed return for any calculation errors or information mismatch.  

  • Verify Form 26AS to ensure that TDS details match with it.  

  • Check AIS – Annual Information Statement to see if you have missed to include any transaction.  

  • Ensure that all income sources are properly declared in the returns.  

4. Return Under Scrutiny 

If your return is selected for scrutiny: 

  • Respond promptly to all notices 

  • Provide requested documents on time 

  • Keep communication channels open with tax authorities 

5. Submit a Refund Reissue Request 

Once you have taken all remedial steps, you can apply for a refund reissue on the portal itself.  

  • Go to "My Account" section and choose "Refund Re-issue".  

  • Fill in the required fields.  

  • Submit the request.  

  • You will be required to e-verify the request.  

6. Raise a Grievance 

If the above methods don't work, you can raise a grievance with the IT Officer.  

  • Use the e-filing portal's grievance submission feature 

  • Provide all relevant details including PAN and assessment year 

  • You can track the grievance status using the request number 

Click here to learn about latest Income Tax Exemption 

How can I prevent Income Tax Refund Delays?  

While income tax refund delays are a hassle, taxpayers can prevent it with a few simple good practices.  

1. File Returns Early 

  • Don't wait for the last date 

  • Early filing means faster processing 

  • Avoid system overload during peak times 

2. Double-Check Information 

  • Verify all bank details before submission 

  • Cross-check TDS entries with Form 26AS 

  • Ensure accurate income declaration 

3. E-verify Promptly 

  • Complete e-verification within 30 days of filing 

  • Use digital verification methods for faster processing 

  • Keep verification acknowledgment safe 

4. Maintain Updated Records 

  • Keep bank account details current 

  • Update any changes in personal information 

  • Save all tax-related documents 

Where & How to Check Income Tax Refund Status Online?  

As mentioned before, check your income tax refund status online, on the income tax portal, before you can take necessary steps.  

Method 1: On the Income Tax Portal - Without Login 

  • Visit the official Income Tax e-filing website (www.incometax.gov.in) 

  • Click on 'Refund/Demand Status' under Quick Links section 

  • Enter your PAN number 

  • Select the relevant Assessment Year 

  • Click on 'Submit' 

Method 2: Through Income Tax Portal (With Login) 

  • Log in to your account on www.incometax.gov.in 

  • Under the 'e-File' menu, choose 'Income Tax Returns', and then 'View Filed Returns' 

  • Click on ‘More Details’.  

  • The refund status is displayed under the relevant Assessment Year.  

 What Do the Different Refund Status Messages Mean? 

  • Return Processing in Progress - Your return is under processing 

  • Refund Initiated - Refund has been approved and sent to bank 

  • Refund Paid - Amount has been credited to your bank account 

  • Refund Failed - Bank transfer unsuccessful due to account issues 

  • Refund Returned - Amount returned to tax department due to incorrect details 

Alternative Methods to Track Income Tax Refund – Through the NSDL Website Method 

  1. Visit the NSDL website (https://www.protean-tinpan.com/). Click on ‘Services’, and then choose 'Status of Tax Refunds'.  
  2. In the next page, choose ‘Refund Tracking’, and click ‘Proceed’ under ‘Taxpayer Refund (PAN)’.  
  3. Enter your PAN and Assessment Year, and click on ‘Proceed’.  
  4. The refund status is displayed on the screen.  

What is Interest on Income Tax Refund? 

If your refund amount exceeds 10% of the total payable tax for that year, you will receive interest on the refund amount, calculated as a simple interest. This interest is calculated at 6% per annum, of the refund amount.  

Income Tax Refund Delays - When to Seek Professional Help? 

You should seek professional help with your Income Tax Refund delays if –  

  • There is a huge delay in your refund (over 3 months) 

  • You are unable to understand or decipher the notices received from tax department 

  • Ther are some major discrepancies in your return filing 

  • You need help with raising a Refund Reissue request 

Income Tax Refund Delayed – FAQs:  

1. How long does it usually take to receive an income tax refund? 

Income tax refunds are generally processed within 7-120 days of filing your return. There might be delays in this period on a case-to-case basis.  

2. What are the most common reasons for refund delays? 

Incorrect bank details, errors in the return, pending tax dues, or technical glitches in the income tax filing portal, are a few reasons for delays in your income tax refund processing. 

3. Can I check my income tax refund online? Where to check?    

You can check the refund status online through the Income Tax e-filing portal or the NSDL website using your PAN and assessment year. 

4. What should I do if my refund is significantly delayed? 

First, ensure that all the details on your income tax filing are correct. If the delay persists beyond 3 months, you can raise a grievance on the e-filing portal or contact the tax department helpline. 

5. Can I get my refund faster if I file my return early? 

Yes, filing early can help with faster processing of your returns and refund.  You also get more time to correct any errors if needed. 

 

Disclaimer: This page includes information that has been compiled from many sources and is only offered for informational purposes. Since this type of data might change over time, we cannot guarantee that the information supplied or included within it is accurate. It is anticipated that the user would confirm with the relevant source prior to taking any choices or actions.