ITR Refund Delay: Income Tax Refund ‘Processed’, but no money is credited? Here’s What You Should Do

The Income Tax Department has started transferring ITR Refunds to the bank accounts of taxpayers who have timely filed their ITRs and are eligible to claim a tax refund. However, there are also such taxpayers who have complained that they still haven’t received their ITR refunds, though their ITR refund status is showing ‘processed’ status.

Upon verification of your annual filing, the Income Tax Department takes around 7-21 working days to initiate processing of the ITR refund, if applicable.

As per the Income Tax Department, “Usually, it takes 4-5 weeks for the refund to be credited to the account of the taxpayer.”  

ITR Refund Delayed: What should be Your Next Move?

If your ITR Refund Status shows ‘Processed’ but no money is credited to your bank account, you don’t need to worry at all. Many factors may be responsible for the delay of your income tax return refund.

Here is a step-by-step guide on what to do next if your ITR refund hasn’t been credited yet:

• Browse the official Income Tax e-Filing Portal at https://www.incometax.gov.in/iec/foportal/ 
• Log in with your credentials and the OTP
• Go to the Refund/Demand Status section
• If the status shows ‘Processed’ but you have not received the money, then check your bank account number and IFSC code
• If your bank account details are correct and no refund has been credited to your account, you have to submit a Refund Reissue Request

After submitting the request, your refund will be initiated and soon will be credited to your given bank account.

What may be potential reasons behind ITR Refund delay?  

There may be various reasons behind your ITR Refund delay, such as;

• Incorrect Bank Details & IFSC Code
• Any error in your TDS or Tax credit
• The refund may be issued, but it may take up to 15 to 30 days to be credited in your bank account; as the refund time may slightly vary from bank to bank.

Taxpayers should also verify their bank information and Form 26AS details.

Over 7 crore income tax returns have been filed for Assessment Year 2025-26 in September, confirmed the Income Tax Department.

ITR filings have witnessed consistent growth over the years, reflecting rising compliance and the widening of the tax base. For AY 2024-25, a record 7.28 crore ITRs were filed up to July 31, 2024, compared to 6.77 crore in AY 2023-24, registering a 7.5 per cent year-on-year growth.