ITR Refund Delay 2025: Reasons Why Refunds Get Stuck and How to Fix Them

Filing your Income Tax Return (ITR) on time is not the end of the process. For most taxpayers, the biggest concern after filing is the refund especially if they have paid extra tax during the financial year. However, many people face delays or even rejection of their refunds due to small but critical mistakes.

If your ITR refund has still not reached your bank account, this guide will explain the four most common mistakes taxpayers make and how you can avoid them to ensure a smooth and timely refund.

Why is E-Verification Crucial for Refund?

When you file your ITR online, the process is incomplete without verification. The Income Tax Department provides a 30-day deadline for e-verification from the date of filing. If you fail to verify within this period, your return is considered invalid, and no refund will be processed.

How to Verify ITR?

• Online Method (OTP-based): Use Aadhaar-linked mobile number or net banking.
• Offline Method: Send a signed physical copy of the ITR-V form to CPC Bengaluru.

Without verification, the department has no confirmation that the return was filed by you, and hence the refund remains stuck.

Quick Summary of ITR Refund Issues

Mistake 1: Claiming Wrong Tax Deductions

One of the main reasons refunds get delayed is claiming incorrect exemptions or deductions without proper documentation. Common examples include:

• Claiming HRA (House Rent Allowance) without rent receipts.
• Declaring investments under Section 80C without proof.
• Claiming medical insurance under Section 80D without premium receipts.

The Income Tax Department cross-verifies these claims. If discrepancies are found, they may hold back your refund and can even issue a notice under Section 143(1).

Tip: Always keep supporting documents for all exemptions and deductions claimed.

Mistake 2: Difference Between AIS and ITR

The Annual Information Statement (AIS) contains income details like:

• Salary
• Interest from savings/fixed deposits
• Dividends
• Share transactions

If there is a significant mismatch between the data in AIS and the income reported in your ITR, the department can flag it and put your refund on hold.

Example:

• Your bank reports an interest income of ₹50,000 in AIS.
• You mistakenly declare only ₹30,000 in ITR.
• The mismatch will delay your refund until rectified.

Tip: Always download your AIS and match it with ITR before filing.

Mistake 3: TDS Mismatch in Form 26AS or AIS

Another major reason refunds don’t arrive is TDS (Tax Deducted at Source) mismatch.

• If your employer/client deducts TDS but fails to deposit it with the Income Tax Department, you won’t get credit for it.
• Freelancers and contract workers often face this issue since multiple clients may delay depositing TDS.

Tip:

• Always check Form 26AS and AIS before filing ITR.
• Ensure the deducted TDS is reflected correctly in the system. If not, contact the employer/client to correct it.

Mistake 4: Bank Account Not Verified

Refunds are issued only in pre-validated bank accounts that are linked with PAN and Aadhaar.

• If you entered an account that is inactive, closed, or not e-verified, the refund fails.
• Many taxpayers forget to update their latest account on the income tax portal.

Tip:

• Login to incometax.gov.in.
• Go to Profile → My Bank Account.
• Check the account status (Active/Validated).
• Update or add a new account if required.

Steps to Ensure Quick Refund Processing

1. File ITR accurately and on time.
2. Complete e-verification within 30 days.
3. Cross-check AIS and Form 26AS with ITR.
4. Keep all deduction proofs ready.
5. Use a pre-validated, Aadhaar-linked bank account.
6. Respond promptly to any Income Tax Department notice.

What to Do If Refund is Still Delayed?

If your refund is still pending after following all steps:

• Check Refund Status on the portal: https://tin.tin.nsdl.com/oltas/refundstatuslogin.html.
• Contact the Income Tax Helpdesk via toll-free number: 1800-103-0025.
• Raise a grievance through the Income Tax e-filing portal.

FAQs on ITR Refund

Q1. How long does it take to get an ITR refund after filing?

Ans. Usually within 20–45 days, provided e-verification and details are correct.

Q2. What if I forgot to e-verify my ITR?

Ans. Your return will be treated as invalid. You may need to re-file and verify it.

Q3. Can I get a refund in a joint account?

Ans. No, the refund is processed only to an individual bank account linked with your PAN.

Q4. What if my TDS is deducted but not deposited by the employer?

Ans. You must contact your employer/client to rectify it. Until then, the IT department won’t process your refund.

Q5. How can I change my bank account for refund?

Ans. Login to the portal → Profile → Add new bank account → Pre-validate → Update as primary.

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