Many taxpayers who filed their income tax return (ITR) for FY 2024-25 are still waiting for their refunds, despite filing well before the extended deadline of September 15. Refund delays have become a common source of frustration, but the reasons are often routine.
Verification and Processing Hurdles
One of the most basic reasons is verification. Filing the return is not enough; it has to be verified within 30 days. Verification can be done through Aadhaar OTP, net banking, or by posting the signed acknowledgement to the CPC in Bengaluru. If this step is missed, the return is treated as invalid and the refund never moves forward.
In some cases, returns are verified but not yet processed. Refunds are only issued after processing is complete. Taxpayers can only wait in such situations, though if the delay drags on, they can log into the portal and raise a grievance under the “CPC-ITR” section, requesting faster processing.
Filing your tax return this year? Head to our detailed ITR Guide for everything you need to know.
Bank Errors and Pending Demands
Another frequent cause is incorrect bank account details. With mergers and IFSC code changes in recent years, refunds often bounce back when the account cannot accept the transfer. The tax department usually sends an email alert, and taxpayers must update bank details under “My Bank Details” and then place a “refund reissue” request.
Refunds may also get adjusted against pending tax dues from earlier years. The system automatically uses the refund to settle outstanding demands—first interest, then principal. Taxpayers can check for such dues under the “Pending Actions” tab on the income tax portal.
TDS Mismatch Issues
Refunds may also be delayed due to mismatches in the tax credit details reported in the ITR. If the TDS claimed in the return does not align with Form 26AS or the Annual Information Statement (AIS), the department may hold back the refund until the matter is clarified. In such cases, taxpayers need to raise a grievance with the CPC to resolve the discrepancy.