Income Tax Refund Delay: Delays related to income tax refunds have become a major concern for taxpayers these days. Many people are complaining on social media that they haven't received their refunds even weeks or months after filing their ITR. In some cases, the return is showing as 'Under Processing,' while others have been sent a 'Defective Return' notice. Therefore, it's important to understand why refunds get stuck and what steps taxpayers can take to receive them on time.

Rising complaints of refund delays

Many cases of refund delays have been reported recently. Some taxpayers have filed revised ITRs, while others have complex details related to foreign investments, capital gains, or advance tax. All of this directly impacts the speed of refunds.
Many individuals receive their refunds quickly, but those whose returns include multiple income sources, high CTCs, or complex investment entries typically take longer.

Major reasons for refund delays

1. Additional scrutiny on large refunds

If your refund exceeds ₹1 lakh, the department conducts additional verification. This verification takes time, resulting in delayed refund issuance.

2. Manual scrutiny of complex returns

Returns that include foreign income, capital gains, or income from multiple sources must undergo manual verification instead of automated processing. This also slows down the process.

3. Defective Return Notice

If any errors are found in the ITR, the department sends a 'Defective Return' notice under Section 154. The refund is withheld until you file a new and correct ITR.

4. Government cash flow problems

Sometimes, government liquidity issues can slow down refund processing. In such cases, significant delays in refund issuance are observed.

5. Delay in filing revised ITR

If you filed a revised return, the system has to recheck it. Therefore, refunds for revised ITRs take longer than for regular returns.

What types of refunds are processed faster?

According to IT experts, simple return forms like ITR-1 (Sahaj) are processed very quickly because they do not contain complex entries. In contrast, detailed forms like ITR-2 and ITR-3, which include capital gains, house property, or multiple income sources, take more time to process.
Taxpayers should regularly check the status of their returns on the Income Tax e-Filing Portal so that any pending notices or inquiries can be resolved in a timely manner.

Other common reasons for refund delays

Not verifying ITR

Many people file their ITR but forget to e-verify it. This results in the return being considered invalid and no refund being issued.

Mismatch with Form 26AS or AIS

If the tax credits shown in the return don't match the figures in Form 26AS or the Annual Information Statement (AIS), the department holds the refund. Even minor discrepancies can hold up processing.

Incorrect reporting by banks and employers

Sometimes, banks or employers report incorrect TDS or income details. In such cases, refunds are withheld, and the taxpayer must file a complaint on the CPC portal.

Important dates for ITR filing

The last date for filing ITR for non-audit cases for the financial year 2024-25 was September 16, 2025.
This date was originally July 31, then extended to September 15 due to major changes in the ITR form, and later to September 16 due to technical difficulties.
Those who missed the deadline can file a belated return by December 31, 2025, but a late fee will apply.
It is important to file your return on time to avoid problems such as penalties or notices.

What to do if income tax refund is stuck?

If your refund is pending for a long time, follow these steps:

1. Check ITR Verification

First, check whether your ITR has been e-verified. Refunds are not issued without verification.

2. Matching of Form 26AS and AIS

Compare the data in your return with the 26AS and AIS. Any mismatch between the two can cause problems.

3. Register Grievance in CPC

If there is a discrepancy in the figures or the refund is pending for a long time, then file a complaint on the CPC portal and clarify the issue.

4. Be patient for revised ITR

If you filed a revised return, processing will take some time. This is normal.

Conclusion

Delays in income tax refunds are not uncommon these days, but being vigilant can help you quickly resolve this problem. Keep your documents updated, regularly check your refund status on the portal, and respond to any notices promptly. Providing accurate and correct information significantly increases your chances of receiving a refund.

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