It has been two 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.
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.
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