Income Tax Refund Delay: Many taxpayers filing income tax returns (ITRs) for the 2024–25 financial year and the 2025–26 financial year are currently worried about the delay in their income tax refunds. People are questioning on social media and tax forums why their refunds haven’t arrived yet.
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Income Tax Refund Delay: Many taxpayers filing income tax returns (ITRs) for the financial year 2024–25 and assessment year 2025–26 are currently worried about the delay in their income tax refunds. People are questioning on social media and tax forums why refunds have not yet arrived. However, the truth is that the Income Tax Department is still working within the stipulated timeline. Under Section 143(1) of the Income Tax Act, the department has the authority to process returns filed for FY 2024–25 until December 31, 2026.
Why are refunds delayed?
According to experts, returns that include large refund claims, capital gains, or various deductions undergo additional automated scrutiny. Processing in such cases takes time. Additionally, the Income Tax Department has the power under Section 245(2) to adjust the refund against old tax dues. If an old tax demand is visible in your name, the refund may be temporarily withheld.
Minor mistakes by taxpayers are also a factor.
Sometimes, delays are not caused by the system, but by mistakes made by taxpayers themselves. According to tax expert Abhishek Soni, many salaried individuals claim deductions like 80C, 80D, or HRA in their ITR, which they have not previously disclosed to their employers. In such cases, the Income Tax Department seeks clarification and withholds refunds until a response is received.
Impact of the NUDGE Campaign
In December 2025, the CBDT launched the NUDGE Campaign. Under this campaign, returns containing discrepancies or discrepancies are alerted via SMS and email. Taxpayers are asked to either accept the changes or file a revised, updated return. Until the taxpayer responds, the refund is held.
Foreign Income or Assets Issues
Refunds may also be delayed if information related to a taxpayer’s foreign income or foreign assets (UFI/UFA) is incomplete. This includes items such as foreign bank accounts, shares, ESOPs, property, or insurance, which must be properly declared.
How to check refund status?
Visit the incometax.gov.in website.
Log in with your PAN and password.
Click on e-File – Income Tax Returns – View Filed Returns.
The complete status of your returns and refunds will be displayed here.
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