After Filing
Income Tax Refund: Status Check, Timeline & Why It's Delayed
A refund arises when the tax you already paid (TDS + advance tax) exceeds your final computed liability. Here's exactly how to track it — and the 6 real reasons it gets stuck, with fixes.
When Do You Get a Refund?
Example — The classic case
Pooja's TDS for the year: ₹45,000 (employer cut assuming old regime + no proofs). Her final ITR (new regime, within ₹12L) computes tax at ₹30,200 + cess. Refund due: ₹45,000 − ₹31,408 = ₹13,592, credited to her bank account after processing.
How to Check Refund Status (2 Ways)
- Way 1 — e-filing portal: Log in → e-File → Income Tax Returns → View Filed Returns → select the year → the refund status shows alongside processing status
- Way 2 — NSDL/refund status page: enter PAN + the relevant year — shows issued/under-process/failed status
- Refund usually hits the bank 2–4 weeks after e-verification; complex returns (capital gains, mismatches) can take longer while CPC processes them
- Status meanings: 'Refund paid' = money sent; 'Refund failed' = bank detail problem; 'Refund adjusted' = set off against an old tax demand
The 6 Real Delay Reasons & Fixes
| Reason | The Fix |
|---|---|
| 1. Return not e-verified | e-Verify immediately (30-day window) — processing never starts without it |
| 2. Bank account not pre-validated / closed | Pre-validate the account on the portal, then issue a refund re-issue request |
| 3. PAN–Aadhaar not linked / mismatch | Link them first — refunds are blocked until then |
| 4. Adjusted against an old demand (Sec 245) | You'd have received an intimation — respond agreeing or disputing with evidence |
| 5. AIS/TDS mismatch flagged by CPC | File a rectification or respond to the query on the portal with proof |
| 6. Wrong bank details captured | Correct, re-validate, then request re-issue of refund |
Interest on Your Refund (Yes, It Earns!)
If the department delays an eligible refund, it pays interest at 0.5% per month (~6%/year) — the old Sec 244A logic continues in the new Act. Interest starts from 1 April of the filing year (or the date of tax payment, per the rules) up to the date of refund. Small blessing: refund interest itself is taxable in the year received.
Example — Interest on a delayed refund
Ritu's ₹13,592 refund was due from July but paid in December (5 months late). Interest ≈ 13,592 × 0.5% × 5 ≈ ₹340 extra in her bank. It shows as 'interest on refund' in her Form 168 — and she declares it as other-sources income next year.
The Refund Checklist (Print This)
- File accurate returns on time — refund size and speed both depend on clean data
- e-Verify within 30 days — the #1 refund killer
- Pre-validate at least one bank account and nominate it for refunds
- Match AIS/Form 168 TDS entries BEFORE filing — mismatches put refunds in the slow lane
- If status says 'adjusted', find the Sec 245 intimation in your email/portal and respond within its deadline
- Still stuck after 90 days of processing? Raise a grievance on the e-filing portal (e-Nivaran) with your acknowledgement number
Reality check on timelines: CPC has gotten fast — clean ITR-1 refunds often land within a week of processing. The delays you hear about are almost always verification, validation or mismatch issues — all fixable from your dashboard.
Our take ✍️
Most 'delayed' refunds trace to three things: unverified return, unvalidated bank account, or AIS mismatch — all fixable in 10 minutes. Check those before assuming the department lost your file. And yes, delayed refunds earn 0.5%/month interest — small consolation, but it's yours.
Stuck? e-verify in 30 days → · belated rules →
By TaxSetu Editorial Team · Last reviewed: 7 October 2026
Based on the Income-tax Act 2025, Income Tax Rules 2026 and CBDT notifications; sections per the Income-tax Act 1961 (as amended) with 2025-Act mappings where notified · Verify on the official portal: incometax.gov.in
Keep Reading
Deductions (80C→123)80C→123 (₹1.5L), 80D→124, 80E→125, 80TTA/80TTB→153(2): the complete deductions list with n…How to Save Tax₹1.5L under 123 (80C), ₹25-75k under 124 (80D), ₹50k NPS extra, HRA, home loan, 80E, donat…TDS RatesAll TDS rates for 2026-27 in one chart: salary (392, old 192), interest, rent 2%, contract…ITR FilingITR last date for Tax Year 2026-27: 31 July 2027 (salaried), 31 Oct (audit), 31 Dec (belat…