• January 15, 2026 | 08:35
  • 27 Dec,2025

ITR Refund Update: How to Track Status and What Delays Mean

ITR refund status

Why Some ITR Refunds Are Taking Longer This Year

For millions of taxpayers across India, filing an Income Tax Return (ITR) is only half the journey. The real relief comes when the income tax refund finally hits the bank account. This year, while the Income Tax Department has processed and issued a large number of refunds, many taxpayers are still anxiously waiting, refreshing their bank apps and checking the refund status repeatedly.

So, what is really happening with income tax refunds this year? Why are some refunds delayed? And most importantly, how can you track your ITR refund status correctly and know what the delay actually means?


Income Tax Refunds: What’s the Latest Update?

The Income Tax Department has confirmed that most refunds for the current assessment year have already been issued to taxpayers who filed their returns correctly and on time. These refunds are being credited directly to the bank accounts linked with PAN through a secure, automated system.

However, not all refunds are moving at the same speed. A significant number of taxpayers are reporting delays, leading to growing concerns and requests for extending the 31 December deadline for filing revised returns.


The key takeaway?

Refund delays do not automatically mean a problem or penalty, but they do require attention.


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Why Income Tax Refunds Get Delayed

If your refund has not been credited yet, you are not alone. There are several common reasons behind refund delays, and most of them are fixable.

1. Return Still Under Processing

After filing your ITR, the status often shows “Return Processing in Progress.” This simply means the system is verifying your data with:

  • Form 26AS
  • Annual Information Statement (AIS)
  • Tax Deducted at Source (TDS) details

This process can take time, especially during peak filing months.


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2. Bank Account Not Validated

Your refund can only be credited if:

  • Your bank account is pre-validated
  • The account is linked with PAN
  • The account is not closed or inactive

Even a small mismatch can delay the refund.


3. Mismatch in Income or TDS Details

If the income shown in your ITR does not match the details available with the department, your refund may be put on hold for further verification.


4. Pending Response to Notice

Sometimes, the department issues an intimation or notice seeking clarification. If this notice is ignored or missed, refund processing can stop temporarily.


5. High Volume of Returns

During deadline periods, the tax portal handles lakhs of returns daily, which naturally slows down processing for some cases.


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The Step-by-Step Guide to Online ITR Refund Status Checking

Tracking your refund is simple and can be done in minutes if you follow the correct steps.

Method 1: Through the Income Tax e-Filing Portal

  • Visit the official e-filing website
  • Log in using your PAN and password
  • Go to “e-File” ? “Income Tax Returns” ? “View Filed Returns”
  • Select the relevant assessment year
  • Check the status shown on the screen

You may see statuses like:

  • Return Filed
  • Under Processing
  • Refund Issued
  • Refund Failed


Method 2: Through NSDL Refund Status Page

  • Visit the NSDL refund tracking page
  • Enter your PAN and assessment year
  • Submit the details

This method is particularly useful once the refund has been approved and sent for payment.


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What Different Refund Status Messages Mean

Understanding the refund status message helps reduce unnecessary stress.

“Refund Issued”

Good news! Your reimbursement has been processed and credited to your bank account. It may take a few working days for the change to take effect.

“Refund Failed”

This usually happens due to:

  • Incorrect bank details
  • Account not pre-validated
  • You can correct the details and request reissue.


“Return Under Processing”

  • Your return is still being reviewed. No action is required unless a notice is issued.


“No Demand, No Refund”

This means:

  • You do not have any tax payable
  • You are not eligible for a refund either


What to Do If Your Refund Is Delayed

If your refund is taking longer than expected, here’s what you should do calmly and systematically.

Step 1: Recheck Bank Details

Ensure your:

  • Account number
  • IFSC code
  • PAN linkage

are all correct and validated.


Step 2: Check for Notices or Intimations

After logging in, look at the "Pending Actions" section of the portal.


Step 3: Respond to Any Communication

If the department has raised a query, respond promptly with accurate information.


Step 4: Raise a Grievance (If Needed)

If your refund is significantly delayed, you can file a grievance through the e-Nivaran or grievance redressal system on the portal.


Revised ITR Deadline and Taxpayer Concerns

With many refunds still pending, taxpayers have been urging the Income Tax Department to extend the 31 December deadline for filing revised returns. The concern is genuine, as delayed refunds sometimes highlight mistakes that taxpayers want to correct without penalties.

While no official extension has been announced yet, experts advise taxpayers to:

  • Avoid waiting until the last day
  • File revised returns as soon as discrepancies are identified



Does Filing Early Help in Faster Refunds?

Yes — absolutely.

Historically, taxpayers who:

  • File early
  • Verify their returns quickly
  • Maintain clean documentation

tend to receive refunds much faster than last-minute filers.

Early filing also gives you enough time to correct errors if something goes wrong.


Common Myths About Income Tax Refunds

Let’s clear some confusion.

Myth: A delayed refund means scrutiny

Reality: Most delays are technical or verification-related, not scrutiny.


Myth: Calling customer care speeds up refunds

Reality: Refunds are system-driven. Manual intervention is limited.


Myth: Small refunds come faster

Reality: Refund amount does not determine processing speed.


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Interest on Delayed Refunds: What Taxpayers Should Know

If the Income Tax Department delays your refund beyond a specified time, you may be entitled to interest under Section 244A. This interest is usually added automatically when the refund is issued.

So while waiting is frustrating, there is at least some compensation for extended delays.



Final Thoughts: Stay Informed, Not Anxious

Waiting for an income tax refund can be stressful, especially when financial plans depend on it. But the most important thing to remember is that refund delays are common and usually temporary.

By:

  • Tracking your refund correctly
  • Keeping bank and PAN details updated
  • Responding to notices on time


you can ensure that your refund reaches you without unnecessary complications.

As the Income Tax Department continues processing pending cases, taxpayers are advised to stay alert, informed, and patient — because in most cases, the refund does arrive.


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