The deadline for filing Income Tax Returns (ITR) for the current assessment year has passed on 16 September, and now most taxpayers are eagerly waiting for their refunds. While many receive their refunds smoothly within a few weeks, others experience unexpected delays. If you are wondering how long it takes for the refund to reach your bank account and why it might be taking longer than usual, here’s everything you need to know.
Typical Timeline for Income Tax RefundsThe refund process begins only after the ITR is successfully e-verified. In most cases, the refund is credited to the taxpayer’s bank account within two to five weeks of e-verification. For simple returns—such as those with only salary income and basic deductions—the refund can arrive in as little as one week. However, more complex returns, such as those involving business income, capital gains, or multiple deductions, may take three to four weeks due to additional scrutiny.
Common Reasons for DelayEven when all documents are correct, refunds can be delayed for a variety of reasons, including:
Unvalidated Bank Account: If your bank account is not pre-validated on the income tax portal, the refund cannot be processed.
Mismatch in Bank Details: Discrepancies in the account holder’s name, incorrect IFSC code, or a closed account can cause delays.
PAN–Aadhaar Linking Issues: If your Permanent Account Number (PAN) is not linked with Aadhaar, the department may hold the refund until the link is updated.
Data Mismatch in the Return: Differences between the TDS (Tax Deducted at Source) details and the information provided in the ITR can lead to verification checks.
High Refund Amount: Refunds exceeding ₹50,000 often undergo additional scrutiny, which can extend the processing time.
If your refund hasn’t arrived within the expected period, you can easily track its status online:
Visit the official income tax website: www.incometax.gov.in.
Log in using your PAN credentials.
Under the Services tab, click on Know Your Refund Status.
Alternatively, go to e-File → Income Tax Returns → View Filed Returns to see the detailed status for the relevant financial year.
The portal will display the current stage of processing, such as:
Submitted/Pending for E-Verification: Return filed but not yet e-verified.
Successfully E-Verified: E-verification completed, processing underway.
Processed: Return successfully processed; refund will be issued soon.
Defective: An error has been found in the return, requiring correction.
Transferred to AO: The case has been sent to the Assessing Officer for further review.
If the tax department delays the refund beyond the prescribed timeline, taxpayers are entitled to interest at 0.5% per month on the pending amount until the refund is issued. This applies regardless of whether the refund is small or large.
Key Takeaways for TaxpayersMost refunds are issued within 2–5 weeks after e-verification, but simple cases can be processed in just a week.
Always ensure your bank account is pre-validated and that PAN and Aadhaar are linked to avoid delays.
Large refunds or complex returns may take longer due to extra checks.
If there’s a delay, check the status online and correct any discrepancies promptly.
By double-checking your details and staying updated through the official portal, you can avoid unnecessary stress and ensure a smooth refund process.
