Income Tax Refund Delay: Why Your ITR Refund Hasn't Arrived Yet — Experts Explain the Real Reasons

Income Tax Refund: Haven’t Received Your Refund Yet? Here’s Why the Delay Is Happening This Year

If your income tax refund hasn’t been credited yet, you’re not alone. Thousands of taxpayers across the country are still waiting for their refunds even weeks after filing their ITR. Social media is flooded with complaints, and tax experts confirm that this year’s delay is unusual. From late release of forms to strict verification checks, multiple factors are slowing down the refund cycle in 2025.

Why Are Income Tax Refunds Slower This Year?

1. ITR Forms Released Late, Filing Window Became Shorter

Tax experts say the biggest reason for the delay is that the ITR forms and utilities were released late this year. As a result:

• Taxpayers got less time to file

• A large number of returns were submitted in a short span

• CPC faced heavy load and bunching, slowing down processing

ClearTax’s CA Shefali Mundhra explains that when lakhs of returns hit the system at once, processing naturally slows down.

2. Stricter Verification of AIS, TIS and Form 26AS

The Income Tax Department is much stricter this year regarding data-matching.

Even small mismatches between:

• AIS (Annual Information Statement)

• TIS (Taxpayer Information Summary)

• Form 26AS

• TDS entries

• Property transactions

• High-value transactions

…can push a return into scrutiny or manual verification, delaying refunds significantly.

Experts say many taxpayers are stuck because their returns have entered the “slow lane” due to mismatch checks.

3. High-Value or Unusual Refund Claims Under Deeper Scrutiny

Taxpayers claiming large refunds or reporting unusual entries in their returns are facing more detailed verification this year.

According to CA Mundhra:

• Every questionable entry is being rechecked

• Additional documents are often being requested

• Salary earners, NRIs, and those with property capital gains are facing the longest delays

This extra layer of verification is extending the processing time for many returns.

4. Recent Changes in Tax Rules Added to the Delay

Gaurav Jain of Forvis Mazars India says that ITR forms were delayed because the CBDT made several updates this year, including:

• New capital gains reporting formats

• Fresh requirements for foreign asset disclosure

• Changes in TDS/TCS reconciliation

Integrating these changes into the system took time, and that delay has carried forward into refund processing.

What Should Taxpayers Do Now?

Tax experts suggest the following to avoid delays:

✔ Match AIS, TIS and Form 26AS very carefully

Even a minor mismatch can push your return into scrutiny.

✔ Ensure your bank account is pre-validated

Refunds are only sent to pre-validated accounts.

✔ Select the correct ITR form

Incorrect form = automatic delay.

✔ NRI taxpayers must file Form 67 on time

Delays here directly impact refund timelines.

✔ Business taxpayers must reconcile GST-TDS properly

Mismatch between GST and ITR data triggers verification.

Experts say that taxpayers who prepare early, match documents accurately, and file clean returns typically receive refunds much faster.