Since the ITR filing deadline has long passed, many of you have been asking about the delay in processing of refunds on this community.
Let’s start by tracking your refund status.
How to track your tax refund status?
To check your tax refund status, follow these steps:
1. Log in to the Income Tax Portal
2. Head to Services → Know Your Refund Status.
3. Select the relevant AY → Submit
4. You’ll see the status of your Income Tax Refund here
The refund status will only reflect once your return is processed. So make sure your return is e-verified, your bank accounts are pre-validated, and nominated for refunds. Once you’ve checked off these things, all you can do is wait for the ITD to process your return.
How long does it take to process returns?
So once you file your return, it goes for processing at the Central Processing Centre (CPC).
Normally, it takes around 2-4 weeks after you e-verify for the processing to move forward. Simpler returns like ITR-1 and ITR-4 are usually processed faster, while ITR-2 and ITR-3 with business and profession details often take more time.
Does the refund amount affect how quickly you get it?
A common doubt is if the Income Tax Department slows down processing of bigger refunds, like ₹50,000, compared to smaller ones, say ₹5,000.
The short answer is not really. The ITD doesn’t delay refunds just because they’re large, in fact there’s no cap on the amount. However, there are instances when large refunds may face additional checks, which could cause a short delay, but the amount itself isn’t the problem.
Possible reasons why your refund might be stuck
From our experience of working with lakhs of taxpayers, the most common reason is bank accounts not being pre-validated. Even a small mismatch between your PAN and bank records can cause this. For example, if your bank has “Ravi J Shastri” but your PAN just says “Ravi Shastri.” So, always double-check that your bank account is pre-validated.
Another big reason is mismatches between your ITR and AIS or Form 26AS. If the numbers don’t add up, your return can get flagged for scrutiny, which naturally delays the refund.
There are a few other possibilities too, like refunds failing due to technical issues at your bank’s end, or your refund being adjusted against pending tax dues from earlier years. You can read the detailed list and what to do in each case here. And if your refund is delayed, the ITD pays you interest at 0.5% per month (6% annually).
And if you’re stuck anywhere or have any other questions, we’re here to help!
