Income Tax Refund 2025: How To Track Your Refunds And Why Delays Happen

Now that the income tax return filing deadline has passed, many taxpayers are awaiting their refunds. Those who are expecting one would be keeping an eye on their bank accounts to see when the refunds will land. Some have already received them within days, while others are still waiting as the Income Tax Department carries out checks or clears the backlog from last-minute filings.

Will the Income Tax Department Delay Big Refunds?

A very common worry among taxpayers is whether refunds above Rs 50,000 face delays. Technically, there is no difference in how refunds are processed, whether it is Rs 10,000 or Rs 1 lakh, the rules don’t set an upper limit.

However, larger refunds may often attract more scrutiny, which may slow things down.

According to some media reports, this year, refunds above Rs 20,000 are receiving extra attention as part of stricter compliance checks. However, this doesn’t mean they won’t come through; it simply means they may take a bit longer to process compared to smaller refunds.

How Long Does It Take?

In most cases, refunds are credited within 2 to 5 weeks after e-verification of the return, according to the department’s own guidance. This year, many have noted getting refunds way faster (within a few days of filing returns).

ITRs that are pretty straightforward with only standard deductions tend to move way faster, while those that involve business income, capital gains, or multiple exemptions may face delays before a refund gets approved.

However, it is also important to understand why returns get delayed in the first place.

Delays can happen due to several reasons, such as:

• Incorrect bank account, which is not pre-validated or linked properly. This may also include an incorrect IFSC code or a defunct account

• PAN not linked with your Aadhaar

• Possible mismatch in AIS or Form 26AS, TDS data

• ITR not e-verified within 30 days of filing return

• Any pending tax demands from previous financial years

• It is important to note that the return may even get flagged for some manual scrutiny

How can you check your refund status?

Taxpayers can check their refund status online on the Income Tax e-filing portal.

To begin with, visit the incometax.gov.in (official website of Income Tax Department) and log in using your PAN and password.

Next, go to the e-File option and click on ‘Income Tax Returns’. Here you can view filed returns. After selecting the relevant assessment year, you will be able to see the refund status.

What can you do if the refund gets delayed?

If the portal shows you this status - Processed with refund due, it means your ITR has been processed but the refund has not been issued.

In this case, taxpayers can raise a grievance or request a reissue on the same portal. It is also worth remembering that in case of prolonged delays, the department pays 6 per cent annual interest on the refund amount.

Filing the return early typically helps with faster refunds. The experience this year once again showed the benefit of filing early, since many who filed well ahead of the deadline saw their returns processed within a few days.

In contrast, those who filed on September 15 or 16 may have seen slower verification due to heavy portal traffic.

For now, there is no need to panic if a refund is taking a few extra weeks, especially for larger amounts.

With details entered correctly, a linked PAN-Aadhaar, and a pre-validated bank account, the refund should eventually find its way into your account.