ITR Refund Delayed? Here's How to Check the Status and What to Do Next

With tax filing season in full swing, many individuals are eagerly waiting for their income tax refunds to be credited. But what if your refund hasn't arrived yet, even after weeks of filing? Understanding how to check the refund status and knowing the next steps can help you resolve the delay efficiently.

Here’s a complete guide on why your income tax refund might be delayed and what you can do to resolve it quickly.

What Is an Income Tax Refund?
An income tax refund occurs when the amount of tax you paid—through TDS (Tax Deducted at Source), TCS (Tax Collected at Source), or advance tax—exceeds your actual tax liability. The Income Tax Department then reimburses the excess amount paid.

Formula:
TDS, TCS or Advance Tax > Final Tax Payable = Tax Refund
Final Tax Payable > Paid Taxes = Balance Tax Payable

Example: If you paid Rs 10,000 in taxes for FY 2023-24 but your actual liability is Rs 8,000, you are eligible for a Rs 2,000 refund. Once the Income Tax Return (ITR) is filed and e-verified, the refund is processed and typically credited within 20–45 days.

Who Is Eligible for an Income Tax Refund?
You can claim a refund if you meet any of the following conditions:
Advance Tax Overpayment: Paid more than your final tax liability.
Excess TDS Deducted: If tax deducted by your employer or bank is higher than your liability.
Self-Assessment Overpayment: Paid more than necessary while filing ITR.
Double Taxation: If taxed in both India and another country with a tax treaty (DTAA), you can claim relief.

Note: Filing an ITR is mandatory to claim any of these refunds.

Why Is Your ITR Refund Delayed?
Several factors can delay your refund. Here are the most common ones:
1. Processing Delays
During peak filing periods, the Income Tax Department can take longer to process returns.

2. Errors in Tax Return
Mistakes in PAN details, income figures, or deductions may lead to verification delays.

3. Mismatch in Form 26AS
If TDS entries in Form 26AS do not match your return, it may cause a delay.

4. Unverified Bank Account
Your bank account must be pre-validated and linked to your PAN for the refund to be processed.

5. Unverified Return
As per current rules, e-verification of the ITR is mandatory within 30 days of filing. Without it, your return won’t be processed.

6. Return Under Scrutiny
Random scrutiny or mismatches can cause further assessments before refund approval.

7. Outstanding Tax/Debt
If you owe prior dues to the tax department or other government bodies, your refund can be adjusted against those.

8. Incorrect Bank Details
Mistyped account numbers or IFSC codes can lead to refund failure or misdirected credit.

9. Offline Filing
Offline or paper-based return filing takes longer to process than e-filing.

10. Fraud or Identity Theft
In rare cases, refund processing may be paused if fraudulent activity is detected using your PAN.

How to Check Your ITR Refund Status
To check your refund status:
Option 1: Through the IT Department Portal
Log in to the ITD e-filing portal.
Click on ‘e-File’ > ‘Income Tax Return’ > ‘View Filed Returns.’
Select the relevant Assessment Year.
Check the status of your return and refund.

What to Do If Refund Is Delayed

Step 1: Check and Validate Bank Account
Confirm your bank account number and IFSC code.
Ensure the account is active and pre-validated in your Income Tax profile.

Step 2: Raise a ‘Refund Re-issue’ Request
If your original refund failed due to incorrect bank details, follow these steps:
Visit the ITD e-filing portal and log in.
Go to ‘My Account’ > ‘Refund Re-issue.’
Select the Assessment Year and fill in your PAN and expected refund amount.
Validate your bank details if not already done.
Submit the refund re-issue request.

Received Less Refund Than Expected?
If your refund amount is lower than what you claimed, you can file a Rectification Request under Section 154 of the Income Tax Act, 1961.

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How to File a Rectification Request:
Log in to the Income Tax e-filing portal.
Navigate to ‘e-File’ > ‘Rectification.’
Choose the relevant Assessment Year and the Request Type.
Specify the error (e.g., TDS not considered, miscalculation) and upload supporting documents.
Submit and e-verify the request.
Errors Eligible for Rectification:
Clerical errors (wrong PAN, name)
Arithmetic mistakes
TDS mismatch
Incorrect deductions or income reporting

Final Tip: Be Proactive
Always file your return early, verify it promptly, and ensure your bank and PAN details are up-to-date. A little vigilance goes a long way in ensuring smooth and timely tax refunds.