ITR Refund Delay: Why Many Taxpayers Haven't Received Their Money Yet and What Options Are Available

New Delhi, September 24, 2025 – With the income tax return (ITR) filing season behind us, millions of taxpayers are now anxiously waiting for their refunds to hit their bank accounts. For many, these refunds are already planned for festive spending, investments, or pending bills. However, delays in processing have left taxpayers worried and frustrated.

From drawing-room discussions to heated complaints on social media, refund delays have become one of the hottest topics for individuals who filed their returns on time. Experts explain why refunds are being held up this year and what taxpayers can do to track or escalate their cases.

Why Are Refunds Delayed This Year?

According to chartered accountant Mihir Singh, refund processing has been unusually slow this year. Even taxpayers who do not have a refund due and simply filed a return for compliance are experiencing delays.

He highlights several reasons:

• The government sought additional information from taxpayers this year, which slowed down return verification.

• Frequent updates in the ITR utility software created glitches during filing.

• A large number of taxpayers filed close to the deadline, leading to a processing backlog.

The good news, Singh adds, is that the Income Tax Department is taking steps to clear pending refunds as quickly as possible.

Social Media Outrage

Angry taxpayers have flooded social media platforms with complaints. Some claim they filed their returns as early as June but still have not received refunds even by late September.

One user wrote: “When taxpayers delay filing, the government imposes heavy penalties. But when refunds are delayed, no one seems accountable.”

Key Reasons Behind Refund Delays

Financial planner Taresh Bhatia, founder of The Richness Academy, explains that mismatches between ITR details and departmental records often trigger verification and delay refunds.

Typical problem areas include:

• Discrepancies in Form 26AS, AIS, or TDS data.

• Large transactions requiring additional scrutiny.

• Peak season backlogs, when lakhs of returns are filed within a few days.

Bhatia advises taxpayers to ensure their bank accounts are pre-validated and active, and to immediately raise a grievance on the portal or call the CPC helpline if processing is completed but refunds haven’t arrived.

Expert Insights on Taxpayer Errors

Tax and investment expert Balwant Jain points out that refund delays are not always linked to large amounts. Even small refunds can get stuck due to simple errors such as:

• Failure to complete e-verification on time.

• Incorrect or inactive bank accounts.

• Mismatched names, PAN details, or IFSC codes.

• Pending tax dues from previous years.

• PAN not linked with Aadhaar.

He stresses that taxpayers should promptly e-verify returns, pre-validate bank accounts, and respond to any notices to avoid unnecessary delays.

Where to File Complaints

If refunds are delayed, taxpayers can:

• Call CPC toll-free numbers: 1800 103 0025 or 1800 419 0025.

• Use helpline numbers: +91-80-46122000 / +91-80-61464700.

• Lodge complaints on social media, where the department is responsive.

• Escalate unresolved issues via CPGRAMS, the government’s grievance redressal platform.

How to Check Refund Status

To track refund status, taxpayers can log into the income tax e-filing portal, go to the e-File section, and select “View Filed Returns.” From there, details of processing status and refund/demand can be checked.

What the Numbers Say

As of September 23, 2025, the Income Tax Department reports:

• Over 7.57 crore returns filed nationwide.

• Around 6.87 crore returns e-verified.

• Nearly 5.01 crore returns already processed.

This still leaves 1.86 crore returns pending, explaining the widespread delays.

How Long Does It Take After E-Verification?

Typically, refunds are credited within 4–5 weeks of e-verification. Simple returns filed through ITR-1 or ITR-2 are processed much faster, sometimes within days. Larger refund claims or cases with mismatched data undergo extended scrutiny.

Will You Get Interest on Delayed Refunds?

Yes. Under Section 244A of the Income Tax Act, taxpayers are entitled to 0.5% interest per month on delayed refunds relating to TDS, TCS, or advance tax. For instance, if a ₹10,000 refund due in April is credited only in September, taxpayers are paid an additional ₹300 as interest.

Can Refunds Be Withheld?

Refunds may be withheld if an assessment or reassessment proceeding is ongoing. However, such withholding requires approval from the Commissioner or Principal Commissioner of Income Tax, and cannot exceed 60 days.

Bottom Line

While delays have caused frustration, experts stress that most cases are temporary bottlenecks caused by verification mismatches or seasonal overload. Taxpayers are advised to stay patient, ensure compliance, and use official grievance channels instead of relying solely on social media complaints.

As refund volumes grow each year, the Income Tax Department faces the dual challenge of faster processing and stricter verification—making taxpayer awareness more critical than ever.