ITR Refund Issues 2025: Delay In Getting Money?, These Common Mistakes Could Be The Reason

Key Highlights:

- Wrong deductions and mismatched data are top reasons for refund delay.

- Bank account issues like verification and KYC errors can stop refunds.

- Old tax dues may be adjusted from current refunds without prior notice.

Mumbai: The Income Tax Department is processing refunds quickly for those who have filed their ITRs. But if you haven’t received your refund yet, don’t worry — there could be several reasons for the delay. Here are 8 common mistakes that may be holding up your tax refund.

Wrong deduction claims

Many taxpayers claim deductions like HRA, Section 80C, or medical insurance without having proper proof. If such claims are suspicious, the tax department may stop the refund and send a notice.

Mismatch in AIS (Annual Information Statement)

AIS includes income from bank interest, dividends, and other sources. If your ITR doesn’t match the AIS, even small errors can cause the system to hold your refund for checking.

TDS credit not matching

Sometimes, your Form 26AS or AIS shows TDS (tax deducted at source), but your employer or payer may not have filed it properly. This is common for freelancers or contract workers and can delay refunds.

Bank account not verified

Refunds are sent directly to your bank account. If the account isn’t e-verified or linked properly, the refund will fail. Always check your bank status on the Income Tax portal.

Refund processing takes time

Even after verifying the ITR, the processing may take a few weeks. The status may show "under processing" for up to 30–45 days, which is considered normal by the tax department.

Refund generated but not credited

Sometimes, the refund is issued but doesn’t reach your bank due to issues like inactive accounts, changed IFSC code, or incomplete KYC. In such cases, you need to submit a refund reissue request.

ITR under scrutiny or assessment

If your return is selected for scrutiny or if you get an assessment notice, your refund will be put on hold until the verification is complete. This can take longer than usual.

Old tax dues adjusted against refund

If you owe tax from earlier years, the department may deduct it from your refund. You’ll get a notification via email or SMS explaining the adjustment.