It seems like many people are frustrated about their delayed income tax refunds for the financial year 2024-25 (AY 2025-26). If you’re one of the many taxpayers still waiting, here are the most common reasons your refund might be stuck.
Common Reasons for ITR Refund Delays
- You didn’t verify your return. Filing your tax return isn’t the final step—you must e-verify it within 30 days. If you don’t, your return becomes invalid and won’t be processed.
- Your bank details are incorrect. If your bank account information is wrong, or if your bank’s IFSC code changed due to a merger, the refund can bounce. Check your email for an alert from the Income Tax Department. If this is the issue, you’ll need to update your bank details on the e-filing portal and request a “refund reissue.”
- There’s a mismatch in your tax credit. The tax department compares the tax credits you claim with the information in your Form 26AS and Annual Information Statement (AIS). Any discrepancy in your TDS (Tax Deducted at Source) or advance tax payments can cause your refund to be held until the issue is resolved.
According to a Chartered Accountant, Siddharth Maurya, the tax department is now prioritizing accuracy over speed, carefully scrutinizing every return before issuing refunds. This includes cross-matching income declared by you with the amounts reported by your employer, banks, and other financial institutions.
While these delays are common, they can be frustrating, especially if you need the money for an emergency. To avoid further delays in the future, it’s best to file your return as early as possible and double-check all your information before submitting it.