Still Waiting for Your Income Tax Refund? Here Are the Possible Reasons for the Delay

Despite the Income Tax Return (ITR) filing deadline of 16 September, thousands of taxpayers are yet to receive their refunds even after nearly two and a half months. Generally, the Income Tax Department processes refunds within 3–4 weeks of filing the return, especially for smaller refund amounts. Larger refunds may take more time. However, many taxpayers are facing unexpected delays this year. Experts say that these delays often occur due to technical or compliance-related issues.

If your refund has not been credited yet, here are the most common reasons and what you can do to fix them.

1. Bank Account Not Pre-Validated or Incorrect Details

One of the most frequent reasons for refund delays is an unvalidated or incorrectly linked bank account.
The Income Tax Department credits refunds only to pre-validated bank accounts. Therefore, taxpayers should log in to the income tax e-filing portal and confirm that:

• The bank account is correctly entered

• The account is pre-validated

• The account is enabled for NEFT/RTGS transfers

If the bank details are incorrect or the account has not been validated, the refund cannot be processed. Updating and validating your bank account on the portal usually resolves the issue quickly.

2. ITR Not Verified Within the Time Limit

Filing your tax return is only the first step. The ITR must be verified within 30 days of filing; otherwise, the department does not process it.

Verification can be completed in two ways:

Online e-Verification

• Through Aadhaar OTP

• Using net banking

• Through bank account or Demat account verification

Offline Verification

• Print the ITR-V form

• Sign it

• Send it via speed post to the Centralized Processing Centre (CPC) in Bengaluru

If your return is not verified on time, the system treats it as invalid, resulting in delays or cancellation of the refund.

3. Delay in Responding to Defective Return Notice

If the Income Tax Department detects errors in your return, it issues a Defective Return Notice under Section 139(9).
Examples of defects include:

• Missing information

• Mismatched income details

• Incorrect tax computation

• Missing mandatory documents

Taxpayers are required to respond within 15 days of receiving the notice. If more time is needed, they can request an extension through the portal.

Failure to correct the defect in time means your return cannot be processed, which automatically delays your refund.

4. Incorrect Claims for Deductions or Exemptions

The tax department carefully reviews all deductions and exemptions claimed under various sections such as:

• Section 80C

• Section 80D

• HRA exemptions

• Capital gains exemptions

If the system finds discrepancies or inconsistent data, it may hold the return for manual scrutiny.
Incorrect claims—whether intentional or accidental—can halt refund processing completely.

Taxpayers who realize they may have claimed the wrong deduction can choose to file a revised return to correct the information. Doing so often helps in faster processing.

Why Regularly Checking Refund Status Is Important

Experts advise taxpayers to check the refund status periodically on the income tax e-filing website or the NSDL refund tracking portal. This helps identify issues early, allowing you to take corrective action before the refund gets excessively delayed.

Final Thoughts

Delayed income tax refunds can be frustrating, especially when expecting a substantial amount. In most cases, the reasons are simple—verification pending, incorrect bank details, or a compliance issue. By ensuring your bank account is validated, your return is verified on time, and any notices are responded to promptly, you can significantly speed up the refund process.