Income Tax Refund Delay 2025-26:
If you've filed your Income Tax Return (ITR) and are still waiting for your refund, you’re not alone. For Assessment Year 2025–26, over 1.16 crore ITRs have already been filed, with 1.09 crore returns verified. Yet, a large number of taxpayers are still wondering why their refunds haven’t arrived—even weeks or months after submission.
This delay is not without reason, and the good news is: if the refund is delayed beyond the prescribed time, the Income Tax Department is liable to pay you interest under Section 244A of the Income Tax Act, 1961.
The primary reason behind refund delays this year is the late start of the ITR filing season. Unlike previous years, the Excel utilities required for filing ITRs were released much later. Here's a quick breakdown:
ITR-1 and ITR-4 utilities were made available only on May 30, 2025.
ITR-2 and ITR-3 utilities were released on July 11, 2025.
As of mid-July, ITR-5, ITR-6, and ITR-7 utilities have still not been released, leaving many taxpayers waiting.
This delay in utility release led to a late start in return filing, which is now impacting the refund disbursal process as well.
Another factor contributing to refund delays is the enhanced scrutiny and verification introduced by the Income Tax Department this year. Over the past year:
The new tax regime was made default from Budget 2023.
Additional data points have been introduced in ITR forms.
The AIS/26AS reporting format has been expanded.
Matching of tax credits has become more stringent.
According to Financial Express, the I-T department is now cross-verifying all return data with third-party sources like AIS/26AS. If there are discrepancies or excess refund claims, the system flags the return for further review—causing further delays in processing.
Yes, under Section 244A of the Income Tax Act, if your refund is delayed beyond a reasonable time (usually more than 3 months after return verification), you are entitled to receive interest on the delayed amount.
This interest is typically:
0.5% per month (or part of the month) on the refund due,
Calculated from the date of return filing or return processing (whichever is later) to the date the refund is actually paid.
If you haven’t received your refund within a reasonable timeframe, you can register a complaint via any of the following platforms:
Here’s how to submit your grievance:
Log in with your PAN credentials.
Go to the "Grievances" section → Select "Submit Grievance"
Choose the relevant department (CPC-ITR, NSDL, SBI, etc.)
Under subcategory, choose “Refund not received”
Fill in details: PAN, Assessment Year, ITR Acknowledgment Number, and the issue
Upload necessary documents (if any) and click Submit
Government's centralized platform to address public grievances:
Website: https://pgportal.gov.in
Select Department of Revenue – Income Tax
Enter complaint details and supporting information
You can also reach the Income Tax Department through:
Helpline numbers available on the Income Tax e-filing portal
Official email support provided for refund-related queries
Always e-verify your ITR promptly after submission.
Double-check your bank account details and PAN linkage.
Avoid errors while claiming deductions or TDS credits.
Review and reconcile AIS/26AS before filing your return.
File as early as possible once utilities are released to avoid last-minute delays.
While the refund delays this year are frustrating for many taxpayers, they’re largely due to procedural delays and system upgrades aimed at improving accuracy and reducing fraud. On the positive side, if the delay exceeds the legal time limit, you’ll be compensated with interest under Section 244A.
If your refund is pending and you've already verified your ITR, don’t hesitate to raise a grievance online—it's quick, simple, and often effective. And remember, being informed and proactive is your best tool when dealing with tax matters.
