Income Tax Refund Delays Explained: CBDT Gives Timeline and Online Tracking Guide

Many taxpayers are still waiting for their income tax refunds, even though some have already received them. CBDT Chairman Ravi Agarwal said the department is reviewing ‘high-value’ and flagged refund claims due to possible errors or incorrect deductions

He further assured that low-value refunds are already being processed and that all remaining pending refunds are expected to be disbursed by November, or at the latest, December 2025.

Why Are Refunds Being Delayed?

The CBDT highlighted two main reasons for refund delays: suspicious claims requiring re-examination and technical or verification issues raised by taxpayers. This has driven prices higher, even though critics argue that the evidence just isn’t there or is inaccurate.

The refunds under review are associated with the following:

• If incorrectly claimed deductions under Section 80C or 80D.
• House Rent Allowance (HRA) claims lack proper evidence.
• Errors in capital gains exemption reporting.
• Discrepancies in TDS (Tax Deducted at Source).
• Refunds accepted without proper documentation.

In such cases, taxpayers have already received departmental emails or notices requesting that they file revised returns to resolve inconsistencies.

Other reasons for refund delays include technical or verification issues:

• Bank accounts are not validated in advance.
• Incorrect or outdated IFSC codes.
• Name mismatches between PAN and bank records.
• If the account number is wrong or inactive
• ITRs classified as Defective Returns.

How to Check Refund Status

Taxpayers can track the status of their refunds quickly via the Income Tax e-Filing portal:

1. Visit https://www.incometax.gov.in and log in using your PAN and password.
2. Navigate to e-File > Income Tax Returns > View Filed Returns.
3. Then select the Assessment Year and click View Details.

The portal provides the ITR Processing Life Cycle, indicating the current processing stage and whether any notices have been issued. Common refund statuses include:

• Refund Issued: Refund credited to the bank account.
• Refund Partially Adjusted: Refund offset against outstanding tax dues.
• Full Refund Adjusted: The entire refund has been adjusted toward pending liabilities.
• Refund Failed: Bank account details are incorrect or unvalidated.

Conclusion

With the CBDT assuring that all pending refunds will be cleared by December, taxpayers are encouraged to verify their bank details, correct any errors in their returns, and respond promptly to departmental notices. These steps can help ensure faster disbursal of income tax refunds.