With the extended deadline for filing Income Tax Returns (ITRs) passing on 16 September 2025, many taxpayers across India are now eagerly awaiting the most anticipated part of the process — their tax refunds.

When will you get your refund?

For most individuals, the refund process kicks off as soon as their ITR is successfully e-verified. In many straightforward cases, especially where smaller sums are involved, taxpayers have reported refunds arriving in just a few days — sometimes even on the same day.

However, on average, refunds are typically credited within four to five weeks of filing. Tax professionals point out that the time taken largely depends on the internal processing checks conducted by the Income Tax Department under Section 143(1). While smaller refunds tend to be cleared faster, larger or more complex returns may require additional scrutiny, leading to longer wait times.

This year, experts also warn that new verification processes for deductions and exemptions could cause minor delays, particularly for those who have made significant claims.

What could cause a delay?

Refunds may be held up if the return includes capital gains, business income, or other complexities. In such scenarios, the Income Tax Department may conduct additional checks or request clarifications. If any inconsistencies are found, the taxpayer will be contacted and asked to respond promptly to avoid further delays.

While many refunds are processed within a week, others may take up to a month or more — especially when a high volume of returns is still under review.

The Income Tax Department compensates for delays by paying interest at 6% per annum on refunds, calculated from 1 April of the assessment year. This means taxpayers are not left entirely out of pocket if their money takes longer to arrive.

No limit on refund amount

There is no upper limit on how much can be refunded. Taxpayers are entitled to a full refund of any excess tax paid, whether through Tax Deducted at Source (TDS), advance tax, or self-assessment.

If your ITR has been filed accurately and successfully verified, you can generally expect your refund within a few weeks. And in some lucky cases, it may land in your bank account almost immediately. For those experiencing delays, rest assured that compensation is part of the process.