FY24-25 Income Tax Refund Delayed? Reasons, Timelines And What Taxpayers Can Do
Delays in income tax refunds often stem from incomplete processing of returns or from issues identified by the Income Tax Department.
Taxpayers are increasingly raising concerns over income tax refunds this assessment year, as delays persist even after returns have been duly filed and verified online.
Social media platforms have seen a surge in grievances, with users highlighting that their refunds are stuck in the processing phase, prompting questions around the efficiency of the system.
Reasons For Delay
The slowdown is largely being attributed to heightened checks by the tax authorities, particularly on filings that involve refund claims.
This year, the Income-tax Department has stepped up checks on filings where income details do not fully align with official records. Any mismatch between a taxpayer’s declared income and figures reflected in Form 26AS, the Annual Information Statement (AIS) or the Taxpayer Information Summary (TIS) is flagged, often leading to delays in issuing refunds.
Income tax refund timelines can stretch when returns remain unprocessed or when mismatches and compliance issues are detected during scrutiny.
A common oversight among taxpayers is failing to verify their income tax returns after submission. Filing the return is only the first step; verification must be completed using Aadhaar OTP, net banking, an electronic verification code (EVC), or by sending a signed ITR-V to the CPC in Bengaluru. Until this step is completed, the return is treated as invalid, and no refund is released.
Income tax refunds may also be held up if there is an outstanding tax demand against the taxpayer or if the department issues an intimation under Section 143(1) of the Income Tax Act, 1961. Errors in bank account details can further slow the release of refunds.
Timeline
As per Section 143(1), tax authorities are permitted to process income tax returns for FY 2024–25 up to Dec. 31, 2026.
This provision means that the closure of belated and revised filing windows does not immediately end processing, with the department retaining a one-year timeframe to finish the exercise.
What Taxpayers Can Do
Taxpayers need not rush to conclusions if their income tax refund is delayed. The first step is to log in to the income tax e-filing portal and check the “Pending Actions” section for any notices or required responses.
Taxpayers should download the intimation and compare it closely with the details in their return, as well as figures reflected in Form 26AS and the Annual Information Statement. If the department’s calculations are accurate, the intimation can be accepted; if not, the discrepancy should be flagged with supporting documents.
Taxpayers are advised to monitor the status of their income tax refunds. The process can be completed online by following these steps:
Visit the official Income Tax Department website.
Log in using your PAN as the user ID, along with your password and the captcha code.
Navigate to the ‘View Returns / Forms’ section.
From the drop-down menu, select ‘Income Tax Returns’ under ‘Select an Option’.
Enter the relevant assessment year and submit the request.
Click on the applicable ITR acknowledgement number to view the refund status.
