Tax Refund Delays Plague Filers as ITR Season Gains Momentum; Here’s How to Get Your Money Back
Sirohi, Rajasthan – The Income Tax Return (ITR) filing season for Assessment Year (AY) 2025-26 is in full swing, but a common grievance echoing across social media and tax help forums is the frustrating delay in receiving tax refunds. While the ITR-1 and ITR-4 utilities were released earlier, the Income Tax Department has now launched the Excel utilities for ITR-2 and ITR-3 for AY 2025-26 as of today, Friday, July 11, 2025. In response to these delays, the ITR filing deadline has been extended to September 15, 2025, offering some relief and additional time to file accurately.
Why the Hold-Up? Common Causes of Refund Delays
Several factors are contributing to the current “tax refund blues”:
- System Upgrades: A significant reason this year is the Income Tax Department’s ongoing system upgrades, initiated post-2024 budget, which involve updating tax slabs and compliance rules. These changes can slow down processing.
- Errors in Filing: A frequent culprit is incomplete or incorrect filings. Mistakes such as inaccurate personal details, undeclared income, or a failure to pre-validate bank accounts can halt the processing of your return and, consequently, your refund.
- Banking Issues: Delays can also stem from unverified bank account details or processing lags at SBI, the designated bank for disbursing refunds.
Don’t Just Wait: Proactive Steps to Track and Expedite Your Refund
While waiting for your refund can be frustrating, staying proactive is crucial. Here’s what you can do:
- Check Your Refund Status Regularly:
- Income Tax Department Portal: Log in to
incometax.gov.inand navigate to ‘Refund/Demand Status’ to get real-time updates. - NSDL Website: Alternatively, visit the NSDL website (
tin.tin.nsdl.com/oltas/refund-status-pan.html) and enter your PAN and assessment year to view your refund status. Make it a habit to check at least once a week.
- Income Tax Department Portal: Log in to
- Verify Your Bank Account: If the Income Tax portal indicates your refund has been issued but your bank account remains empty, immediately double-check your pre-validated bank account details on the income tax portal. Any discrepancies can cause payment failures.
- E-Verify Your ITR Promptly: Your ITR will not be processed until it is e-verified. Complete this crucial step immediately after filing. Common e-verification methods include Aadhaar OTP, Net Banking, or Digital Signature Certificate (DSC).
- File Accurately and Completely: To avoid unnecessary delays, ensure all details in your ITR are precise and thorough. Double-check all income sources, deductions, and personal information before submission.
- Choose the Correct ITR Form: Selecting the appropriate ITR form based on your income type is vital. Salaried individuals typically use ITR-1, while business owners may require ITR-3 or ITR-4.
Still No Refund? Here’s How to Lodge a Complaint
If your ITR shows as processed but the refund hasn’t arrived after a reasonable period, it’s time to escalate the issue:
- Lodge a Grievance: Visit the Income Tax Department’s e-Nivaran portal (
incometax.gov.in) or the CPGRAMS portal (pgportal.gov.in). Under “Refund not received,” lodge a complaint. Provide your PAN, assessment year, acknowledgement number, and contact information for quicker resolution. - Escalate if Unresolved: If your issue isn’t resolved within 15-20 days, don’t hesitate to escalate it. You can reach out to a senior officer through CPC-Bangalore, your regional IT office, or even leverage the IT Department’s official social media channels for further assistance.
Good News: Extended Deadline and Potential Interest
Taxpayers have some good news this year:
- Extended Deadline: The ITR filing deadline has been extended to September 15, 2025, providing more time to file accurately and potentially avoid errors that could delay your refund.
- Interest on Delayed Refunds: Under Section 244A of the Income Tax Act, if your refund is delayed despite timely filing, you might be eligible to earn interest on the refund amount. This offers a small compensation for the wait.
While tax refund delays can be frustrating, staying informed and proactive is key. Regular status checks, accurate filing, and prompt action on any discrepancies will help ensure your hard-earned money makes it back to your account without unnecessary hold-ups this assessment year.