ITR Refund Delay: How to Fix It?

Introduction

Experiencing an ITR refund delay can be frustrating, especially when you’ve planned your finances around receiving it on time. Filing your Income Tax Return (ITR) early generally speeds up the refund process, but as the tax department’s workload increases, delays can occur. For the financial year 2022–23, over 6.5 crore ITRs were filed by the July 31 deadline, yet many taxpayers are still waiting for their refunds due to various processing issues.

One effective way to address an ITR refund delay is to contact the Income Tax Department and request a refund re-issue using your PAN and assessment year details.

This guide explains the common reasons behind ITR refund delays and offers practical steps to help you resolve them quickly. File your ITR on time with Auriga Accounting pvt. ltd. to avoid refund delays and ensure smooth processing!

What Is an Income Tax Refund?

An income tax refund is issued when the total tax you have paid during the financial year is higher than your actual tax liability. This excess tax payment may result from higher TDS deductions on salary, interest income, or TCS collected on specific transactions.

To claim this excess amount, you must file your Income Tax Return (ITR), which reports your income, deductions, TDS, TCS, and advance tax. If, after filing, the system determines that your total tax paid exceeds your actual tax liability, the Income Tax Department will initiate the refund process.

Example:
If you paid ₹80,000 as TDS in FY 2023–24 (AY 2024–25), but your final tax liability is only ₹60,000, you are eligible for a refund of ₹20,000.

When Is the Ideal Time to Receive an ITR Refund?

There is no fixed “ideal” time for receiving an ITR refund. However, taxpayers typically receive refunds within 4–5 weeks after successful e-verification of their ITR.

E-verifying your return promptly and ensuring your ITR is accurate greatly reduces delays. If your refund is still pending beyond this period, check the Income Tax portal for notifications regarding discrepancies or missing information.

Common Reasons for ITR Refund Delays

Several factors can slow down the refund process. The most common include:

1. Processing Time

During peak seasons, refund processing may take longer simply due to the high volume of returns.

2. Errors in Your ITR

Incorrect PAN, income details, or deductions can cause delays.

3. Mismatch in Form 26AS/TIS/AIS

If the tax payment details in your ITR don’t match Form 26AS, the department may hold your refund until the mismatch is resolved.

4. Missing or Incomplete Documentation

Certain deductions may require supporting documents. Refunds are delayed until verification is completed.

5. Outstanding Tax Dues

Any pending taxes, penalties, or government dues may be adjusted against your refund.

6. Incorrect Bank Details

A wrong account number, inactive bank account, or name mismatch can cause refund failure.

7. Return Under Scrutiny

If your ITR is selected for detailed scrutiny, the refund will be released only after assessment.

8. Postal Delays (for cheque refunds)

Refund cheques can be delayed due to an incorrect address or postal issues.

9. Offline Filing

Manually filed returns take longer to process than online filings.

10. Identity Theft or Fraud

Suspicious activity or duplicate filings can halt refund processing.

11. False Claims Detected

If incorrect deductions or inflated refund claims are found, the department may demand repayment, impose penalties, and delay future refunds.

What to Do if Your ITR Refund Is Not Received?

If your refund is delayed, here’s how to resolve it:

1. Verify Your Bank Details

Double-check your:

Bank account number
IFSC code
Account status

Also ensure your bank account is pre-validated and nominated in the Income Tax portal.

2. Raise a Refund Re-Issue Request

If your bank details are correct but the refund failed, you can request a re-issue.

Steps to raise a refund re-issue request:

Log in to the Income Tax e-filing portal
Go to ‘My Account’
Click ‘Refund Re-issue’
Select ‘Create Refund Re-issue Request’
Enter PAN, assessment year, refund amount
Complete e-verification
Submit the request

Be ready to provide:

PAN
Assessment year
Refund amount

Interest on Delayed Refund (Section 244A)

If the delay is caused by the Income Tax Department, you are eligible to receive interest at 0.5% per month (or part of the month) on your refund amount.

Interest is payable when the refund is 10% or more of the total tax paid, provided your ITR was filed before the due date.

How to Check Income Tax Refund Status

You can check your refund status using either of these methods:

1. Through the Income Tax e-Filing Portal

Log in to the e-filing portal
Go to e-File > Income Tax Returns > View Filed Returns
Select the assessment year
Click ‘View Details’
Check whether the status shows “Processed with refund due”

2. Through the NSDL (TIN) Portal

Visit the NSDL refund tracking page
Enter your PAN, assessment year, and captcha
View the refund status on submission

About the Author

Ravi

Ravi is an expert legal writer who transforms complex laws into clear, practical guidance. He helps entrepreneurs understand their legal responsibilities, empowering them to build confident, compliant, and sustainable businesses.