It has been four full months since the last date for ITR filing has elapsed, but the ITR refund status of many is still showing “processing”. Why is there a delay in your ITR refund? How to check the ITR refund status? Will the government give any interest on the ITR return since it is delayed? Let’s find out.
Two Reasons Might Be Behind Your ITR Refund Delay
If you’re still waiting for your Income Tax Return (ITR) refund, understanding the root causes can help you take corrective action quickly. The Income Tax Department processes thousands of refunds daily, but delays often occur due to specific issues on the taxpayer’s end. Here are two primary reasons that might be holding up your refund:
Reason 1: Pending Actions in Your ITR Worklist
One of the most common reasons for ITR refund delays is the presence of pending actions that require your immediate attention. To check if this is causing your delay, log into your Income Tax portal and navigate to Pending Actions → Worklist.
This section displays any outstanding tasks or information that the Income Tax Department is waiting for from you.
These pending actions could include requests for additional documentation, clarification on specific income sources, or validation of deductions claimed in your return. Until you address these pending items, the department cannot process your refund. Simply reviewing this section and completing any required submissions can significantly accelerate your refund timeline. Many taxpayers are unaware of these pending actions, which is why their refunds remain stuck in processing for months.
Reason 2: Aadhar-PAN Link Status Issues
The second critical reason for refund delays is an improper or incomplete Aadhar-PAN link status. The Income Tax Department mandates that all taxpayers link their Aadhar number with their PAN (Permanent Account Number) for seamless verification and processing. If your Aadhar and PAN are not properly linked, or if there’s a mismatch in the information, the department may place a hold on your refund for verification purposes.
To resolve this, log into the official Income Tax portal or NSDL website and verify your Aadhar-PAN link status. If you notice any discrepancies, update your information immediately. Ensuring that your Aadhar details match exactly with your PAN records, including your name, date of birth, and address, is crucial for refund processing. Correcting this link status often resolves refund delays within a few days to a week.
ITR refund status: Why is the ITR Refund delayed?
The actual reasons for the delay in the ITR refund are:
At present, more than 1 crore ITRs are pending with the Income Tax Department. Most of the ITRs that are delayed are not verified. Some ITRs are verified but still not processed. This backlog is the primary reason behind ITR refund delays.
Scrutiny of Old Regime Claims
Taxpayers who had opted for the Old Tax regime for FY 2024-25 are now being scrutinized. As the old regime offered many deductions, the IT department is verifying the fake claims.
As the ITR forms of 2024-25 were changed, they require a detailed breakup of deductions for cross verification. The IT department verifies the data with third parties. Until the verification doesn’t get completed, ITR processing will be delayed.
Fake or Incorrect Claims
Many salaried individuals chose the old tax regime to claim fake deductions and exemptions to reduce taxable income.
The government is now stricter, and the fake claims are being thoroughly checked. This is one of the most prominent reasons for ITR refund delays.
Wrong Income Reporting
Some taxpayers claim a TDS refund without reporting the full associated income. For example, they claim TDS on an income of Rs 90,000, showing income as only Rs 40,000 to maximize returns.
This is leading to an unchanged ITR refund status and notices from the IT department.
Previous Year’s Mistakes
ITR refund delays are also happening due to previous years’ mistakes. Taxpayers who claimed fake deductions in previous years are being scrutinized thoroughly. The verification process of such deductions is intentionally delayed. The ITR refund will not be processed until the documentation is properly matched.
Also Read: Got Your ITR Refund? 10 Genius Ways to Make It Grow (Not Go!)
What to do if the ITR refund is delayed?
You must be wondering what to do as my ITR refund is delayed. Here is the course of action if your refund is delayed.
- If your ITR refund is delayed for an inordinate period of time, you must check if you made any mistakes in filing the ITR.
- If you spot any errors, fake deduction claims, or incorrect entries, file a revised return before December 31, 2025. This way, you can avoid penalties.
- In case the IT department asks for any proof, keep the supporting documents ready.
- If there are no errors, you should not worry. The ITR refund delay is just procedural and will be processed soon.
Conclusion to ITR Refund Status
While ITR refund delays are frustrating, most cases are simply stuck due to verification backlogs and stricter scrutiny of claims under the old tax regime. If you’ve filed correctly and verified your return, your refund is likely delayed only for procedural reasons.
However, if you spot any errors or inconsistencies, revising the return before December 31, 2025, is the smartest move to avoid penalties. Keep your documents ready, respond promptly to notices (if any), and monitor your ITR refund status regularly. The refunds will gradually clear as the Income Tax Department completes its verification cycle.
