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Income Tax

Why Your Income Tax Refund Is Delayed and How to Fix It

Most refund delays come from an unverified return, an unvalidated bank account, an inoperative PAN, an old tax demand or a return held for review.

PN

Written by Priya Nair

Published 17 September 2026·6 min read

On this page8 sections
Credsir Income Tax guide cover with a receipt indian rupee icon

The Income Tax Department says a refund usually reaches your bank 4 to 5 weeks after your return is processed. Longer delays usually trace to an unverified return, an unvalidated bank account, an inoperative PAN, an old demand, or a hold for checks. Each has a fix on the e-Filing portal.

Key facts

Item Detail for AY 2026-27 (FY 2025-26)
Usual credit time 4 to 5 weeks, per the portal’s refund status manual
Verification deadline 30 days from uploading the return
Deadline for CPC to process 9 months from the end of the financial year in which you filed (Section 143(1), Income-tax Act, 1961)
Interest on late refund 0.5% a month under Section 244A
Where to check e-File > Income Tax Returns > View Filed Returns
Helpline (e-Filing and CPC) 1800 103 0025 or 1800 419 0025, 8 am to 8 pm, Monday to Friday

Returns for FY 2025-26 are processed under the Income-tax Act, 1961, even though the Income-tax Act, 2025 took effect on 1 April 2026. Refund rights that arose under the old Act continue, according to the department’s FAQ on the new Act.

Check your refund status first

Log in to the e-Filing portal and go to e-File > Income Tax Returns > View Filed Returns. Click View Details for AY 2026-27. The status tells you which fix applies:

ItemDetails
Refund Issuedthe money has been sent. Check the account shown against the refund.
Partially Adjusted or Fully Adjustedsome or all of the refund was set against an outstanding demand.
Failedthe bank credit did not go through. You need a refund reissue request.
Return not yet processedCPC has not finished processing, or has put it on hold.

Our income tax refund status page covers the tracking routes in detail. This page deals with fixing a refund that is stuck.

The common reasons refunds get stuck

The return is not verified

Processing starts only after verification. You have 30 days from uploading the return to e-verify it. If you verify later, the verification date counts as your filing date. Check the status in View Filed Returns and use e-Verify if it is pending.

Your bank account is not pre-validated

The portal now requires a pre-validated bank account for refunds. The refund status manual lists these failure causes:

  • the account is not pre-validated;
  • the name on the bank account does not match your PAN;
  • the IFSC is invalid;
  • the account has been closed;
  • your PAN is inoperative because it is not linked with Aadhaar.

Your PAN is inoperative

An unlinked PAN becomes inoperative, and refunds stop until it is made operative again. Link it through the Link Aadhaar service on the portal. Our PAN and Aadhaar guide explains the linking steps and fee.

Your income does not match AIS or Form 26AS

A TDS claim missing from Form 26AS, or income that differs from your Annual Information Statement, can hold processing. CAclubindia’s September 2026 note on AY 2026-27 delays names these mismatches as a leading cause. It also lists deductions such as HRA, Section 80C or 80D claimed in the return but not shown by your employer. Compare your figures with Form 16 and Form 26AS before you chase the refund.

An old demand is being adjusted

Under Section 245 of the 1961 Act, the department can set a refund against tax you owe for another year. It first sends an intimation. If you do not reply within 30 days, the adjustment goes ahead, according to DisyTax and Oquilia. Reply under Pending Actions > Response to Outstanding Demand. If you ignore the demand, the portal FAQ says it will be confirmed and adjusted against your refund.

The return is held for review

CPC can hold a return that shows risk flags, such as a refund much larger than in earlier years. In Parliament on 12 February 2026, Minister of State for Finance Pankaj Chaudhary linked slower refunds to the NUDGE campaign. Under it, selected taxpayers are asked to review and revise returns with doubtful claims. He said 24.64 lakh returns were pending processing beyond 90 days as of 31 January 2026, as reported by CAalley. No official rule sets a fixed refund amount, such as ₹50,000, that triggers a hold.

How to fix each problem on the portal

Pre-validate your bank account

  1. Log in and go to My Profile > My Bank Account.
  2. Click Add Bank Account.
  3. Enter the account number, account type, holder type and IFSC.
  4. Click Proceed to E-Verify and choose a verification option.
  5. Enter the OTP and submit the validation request.
  6. If the account appears under Failed Bank Accounts, correct the details and click Re-Validate.

Request a refund reissue after a failed credit

  1. Log in and go to Services > Refund Reissue.
  2. Click Create Refund Reissue Request.
  3. Select the refund record and click Continue.
  4. Choose a validated bank account and click Proceed to Verification.
  5. E-verify with Aadhaar OTP, EVC or a digital signature.
  6. Note the Transaction ID shown on screen.

Respond to a hold or a mismatch

Check Pending Actions > e-Proceedings and your registered email for any notice. If the return has a genuine error, a revised return may be the cleaner fix. Our page on revised and updated returns sets out the deadlines.

Interest you get on a late refund

Section 244A pays simple interest at 0.5% for each month or part of a month. For TDS and advance tax refunds on a return filed by the due date, interest runs from 1 April of the assessment year. For a belated return, it runs from the filing date. No interest is paid if the refund is less than 10% of the tax determined. Periods of delay caused by you, such as a late bank validation, are left out, according to DisyTax.

Raising a grievance when nothing works

  1. Log in and go to Grievances > Submit Grievance.
  2. Select CPC-ITR as the department, since it handles refunds.
  3. Choose the category and sub-category.
  4. Describe the problem in at least 100 characters and attach proof.
  5. Click Submit Grievance and note the acknowledgement number.
  6. Track it under Grievances > View Grievance Status.

You can also call the CPC helpline listed above. If an old demand or a return under review is involved, a chartered accountant can check your reply before you file it.

Frequently asked questions

How long does an ITR refund take?

The portal says a refund usually reaches your account 4 to 5 weeks after processing. Returns flagged for review can take months.

Why is my ITR refund delayed when my return is processed?

The credit may have failed because the bank account is not pre-validated, the name does not match your PAN, or the account is closed. Check the status and file a refund reissue request.

Is a refund above ₹50,000 always held?

No official rule says so. Large refunds or sharp jumps from earlier years can be flagged for checks, but no fixed threshold is published.

Will I get interest on a delayed refund?

Yes, 0.5% a month under Section 244A, unless the refund is under 10% of the tax determined or the delay was caused by you.

What does “Fully Adjusted” mean?

Your whole refund was set against an outstanding demand under Section 245. Check the demand under Response to Outstanding Demand.

What is the last date for CPC to process my AY 2026-27 return?

Nine months from the end of the financial year in which you filed it. A return filed in July 2026 must be processed by 31 December 2027.

Sources

Go deeper

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