ITR Refund Delays in 2025 have become one of the biggest concerns for taxpayers this year. With lakhs of people still waiting for their refunds, searches around refund delays, refund status, and processing updates have skyrocketed. Many taxpayers are wondering why the usual quick refund cycle has slowed down and whether there’s an issue with their return.
Here’s a simplified, human-friendly breakdown of what’s going on, what the Income Tax Department has said, and what steps you should take to get your refund faster.
1. Why ITR Refunds Are Delayed This Year
a) Extra scrutiny of high-value refunds
CBDT has confirmed that high-value refund claims and returns with mismatched or unusual deductions are being examined more closely. This means:
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Small refunds are being paid normally
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Large refunds or “red-flagged” returns are taking longer
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Cases showing inconsistency in TDS, deductions, or income are pushed into manual review
The goal is to prevent wrongful refunds, but unfortunately, it slows down genuine taxpayers too.
b) Huge backlog of returns
Over 8 crore returns were filed this year, and more than 90 lakh are still pending processing. Naturally, the queue is long, and the system is prioritizing cases based on risk levels.
c) Expected clearing by December
Government officials have stated that the majority of pending genuine refunds are expected to be cleared by December 2025. So, for most taxpayers, this is likely a system delay rather than a problem with your return.
2. What’s Different This Year?
Under normal circumstances, refunds are credited within 4–5 weeks of filing and e-verification.
But in 2025, many taxpayers are waiting much longer, especially those who:
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Claimed higher deductions
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Filed after the due date
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Have discrepancies between Form 26AS/AIS and the ITR
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Have high refund amounts
If your refund hasn’t arrived in 6+ weeks, it’s time to check your status and fix possible issues.
3. Common Reasons Your Refund May Be Stuck
1. Bank account not validated
The most common technical issues include:
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Bank account not pre-validated
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IFSC changed after bank mergers
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Wrong or closed refund account
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Name mismatch between PAN and bank account
Even if your ITR is processed, the refund cannot be credited unless the bank account is validated on the portal.
2. Return not fully processed
Your ITR status may show:
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Pending for e-verification
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Successfully e-verified (not processed yet)
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Defective return (needs correction)
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Transferred to Assessing Officer for manual review
If your return is defective or assigned to an AO, the refund will stay on hold.
3. Mismatches in data
The system flags mismatches between what’s in:
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Form 26AS
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AIS/TIS
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TDS claims
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Interest income
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High-value transactions
Even small inconsistencies can pause your refund until clarified.
4. Filing ITR late
If you filed a belated return, the department may take longer to process it, since late returns have a higher chance of errors and mismatches.
4. How to Check Your Refund Status
Option A: On the Income Tax Portal
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Log in at incometax.gov.in
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Go to: e-File → Income Tax Returns → View Filed Returns
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Select the relevant year
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Check:
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ITR processing status
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Refund amount
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Any pending actions
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Option B: Through NSDL (TIN) Refund Status Page
You’ll see whether:
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Refund is already sent
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Refund failed due to bank issues
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Refund is still under processing
If it shows refund failed, update and re-validate your bank account immediately.
5. Will You Get Interest on Delayed Refunds?
The Income Tax Act, 2025 (applicable from April 2026) reorganizes refund rules but continues the same logic:
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Interest on delayed refunds is 0.5% per month
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Interest starts from:
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1 April following the financial year if you filed on time
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Date of filing if you filed late
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No interest is paid if the refund is less than 10% of total tax liability
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If the delay is due to your mistake (wrong details, mismatch, late ITR), interest may not apply
6. A Quick Checklist to Speed Up Your Refund
Before worrying, check these:
✔ Ensure your ITR is e-verified
✔ Check refund status on the Income Tax portal + NSDL portal
✔ Pre-validate your bank account again
✔ Confirm PAN–Aadhaar is linked
✔ Check for notices or defective return messages
✔ Download your AIS/TIS and 26AS to see if anything mismatches
✔ File a grievance on e-Nivaran if the delay is abnormally long
7. How Bizhrs Helps You Avoid Refund Delays
A lot of refunds get stuck due to small mistakes. Bizhrs ensures:
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Accurate filing with zero mismatches
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Pre-validation of bank accounts
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PAN–Aadhaar compliance
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Regular refund tracking
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Assistance in responding to department notices
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Support if your case is transferred to an Assessing Officer
With us, your ITR is filed cleanly and monitored until the refund hits your bank.
ITR refund delays in 2025 are happening at a national scale due to heavy scrutiny and processing backlogs. The good news? Most genuine refunds will be cleared soon.
The best thing you can do right now is stay proactive, ensure your details are correct, and keep checking your status. And if you’d rather let experts handle this entire process, Bizhrs is always just one call away.
