Income-tax refunds have risen sharply this year, but that does not mean every taxpayer who has already filed and verified an ITR has already received the money.
As per the Central Board of Direct Taxes (CBDT) data, direct tax refunds increased 29.19% year-on-year to ₹2.20 lakh crore as of 17 September, compared with ₹1.70 lakh crore during the corresponding period last year.
The Income Tax Department had received more than 7.8 crore ITRs by 31 August.
If you are still waiting for a refund, the first thing you need to understand is that filing and e-verifying a return does not mean the refund has been approved. The return must be processed, and the tax department must reconcile the information before releasing it. The department says refunds generally take about 4 to 5 weeks after e-verification.
Here are five things that could hold up your refund:
1. Your return is still being processed
A verified ITR may simply be awaiting processing. Taxpayers can log in to the income-tax e-filing portal and check the return lifecycle under e-File > Income Tax Returns > View Filed Returns. The portal shows whether the return is verified, processed, or whether a refund has been issued, adjusted or failed.
2. TDS or tax-credit mismatch
A difference between the tax credits claimed in your ITR and the information available with the department can delay processing. Taxpayers should check their TDS/TCS details and reconcile them with Form 26AS, AIS and TIS.
3. An old tax demand is pending
An outstanding demand from an earlier assessment year can affect the refund. The tax department can offset a refund against a confirmed outstanding demand if the taxpayer does not respond. Taxpayers can check this under Pending Actions > Response to Outstanding Demand on the e-filing portal.
4. Bank-account problems
Even after a refund is determined, the money may not reach you if the nominated bank account is not pre-validated, the account is closed, the IFSC is incorrect, or the account holder’s name does not match the PAN records.
5. PAN-Aadhaar or other compliance issues
An inoperative PAN can also result in a refund failing. The department advises taxpayers to check their e-filing account for any discrepancies, notices, or communications requiring action.
If a refund has failed due to bank account details, taxpayers may need to correct the account information and submit a refund reissue request on the e-filing portal.