ITR Refund Delayed in 2025? These 8 Common Mistakes Could Be the Reason
If you’re still waiting for your Income Tax refund for the financial year 2024–25, you’re not alone. While many taxpayers have already received their refunds, others are experiencing unexpected delays. The Income Tax Department processes verified returns quickly, but certain common mistakes can cause your refund to get stuck.
Here are the top reasons why your ITR refund might be delayed in 2025:
1. Incorrect Deduction Claims
Claiming deductions under sections like 80C, HRA, or medical insurance without valid proof can lead to trouble. If the Income Tax Department finds your claims suspicious or unsupported, they may hold back your refund and send a notice asking for clarification or documents.
2. Mismatch in AIS (Annual Information Statement)
AIS includes details of your income such as savings interest, dividends, and other financial transactions. If the data in your ITR doesn’t match with the AIS, even by a small margin, the system may flag it for review. This mismatch can result in refund delays until the discrepancy is resolved.
3. TDS Credit Not Matching with Form 26AS
Form 26AS and AIS reflect the TDS deducted by employers, banks, or clients. If the deducted tax shown in your form does not match what you’ve reported, the refund will not be released. This is common among freelancers and contractual workers whose clients fail to report TDS on time.
4. Bank Account Not Verified
Your refund is directly transferred to your registered bank account. If your account is not e-verified, linked correctly, or KYC-compliant, the refund will fail. Always ensure that your bank details are updated and verified on the Income Tax portal.
5. Delay in Refund Processing
Even after successful filing and verification, refund processing can take a few weeks. The status may show as “under processing” for up to 30 to 45 days. This is considered normal and usually doesn’t require any action from your side.
6. Refund Generated but Not Credited
In some cases, the Income Tax Department issues the refund, but the money doesn’t reflect in your account. This can happen if your bank account has become inactive, the IFSC code has changed, or your KYC is incomplete. You may need to submit a refund reissue request through the income tax portal.
7. ITR Selected for Scrutiny or Assessment
If your ITR has been flagged for further review or scrutiny, the refund will be kept on hold until the verification process is complete. This process can take longer depending on the nature of the assessment and the response time from the taxpayer.
8. Past Tax Dues Adjusted Against Refund
If you have any outstanding tax liabilities from previous years, the department has the authority to adjust the amount from your current refund. You will usually receive an email or SMS notification explaining the deduction.
Final Words
A delayed ITR refund can be frustrating, but in most cases, it’s due to correctable issues. Always double-check your ITR before submission, match your income details with AIS and Form 26AS, and ensure your bank account is fully verified. If everything is in order and your refund is still pending, it’s worth waiting at least 30–45 days before raising a grievance or reissue request.
