Income tax refund not credited? Here's how to check status and understand possible delays

For many taxpayers, the wait for their Income Tax refund continues for even weeks after filing. The due date for filing Income Tax Returns (ITR) for most individual taxpayers closed on September 16, and while the Income Tax Department has already processed a majority of refund requests, a significant number are still pending.

The IT portal states that it typically takes 4–5 weeks for refunds to be credited to the taxpayer’s bank account. Refunds involving larger amounts may take longer due to additional verification checks.

If your ITR was filed before September 16, the Income Tax Department will pay interest at 0.5% per month starting April 1 until the refund is issued.

Refund issuances, as per official data updated till last week, dropped about 18 per cent to over Rs 2.42 lakh crore between April 1 and November 10.

Why your refund may be delayed

There are several common reasons that can hold up the refund process:

• TDS/TCS credit mismatch
• Incorrect deduction claims
• Wrong allowances claimed by salaried employees
• Errors in income reporting leading to a defective return
• Filing with fake or unverifiable deduction claims, triggering deeper scrutiny

For returns filed after the deadline, the interest calculation begins from the actual date of filing.

To enable smooth refund processing, ensure the following are in place:

• Valid user ID and password on the income tax portal
• PAN and Aadhaar must be linked
• ITR filed claiming a refund

How to check your Income Tax refund status

Follow these steps to track your refund online:

1. Visit the Income Tax e-filing portal

2. Login using User ID (PAN) and password

3. Go to e-File → Income Tax Returns → View Filed Returns

4. Select the Assessment Year to view refund status

5. Click ‘View Details’ to check the full processing timeline

Refund delay: CBDT Chairman’s statement

CBDT Chairman Ravi Agrawal on Monday said the tax department is undertaking an analysis of wrongful deductions claimed in certain cases, leading to a delay in issuance of refunds, and legitimate payouts are expected by December.

Income-Tax Department head said the department was analysing some of the refund claims which were identified as "high-value" or were "red-flagged" by the system due to claims of certain deductions.

"We have also written to the taxpayers to file a revised return in case they have forgotten something," he said.

"Low-value refunds are being released. We have analysed and found that some wrong refunds or deductions were being claimed. So, this is a continuous process. We hope to release the remaining refunds by this month or by December," Agrawal told reporters after he inaugurated a taxpayers' lounge at the ongoing India International Trade Fair (IITF). (With inputs from PTI)