ITR Refund Delays In 2025: What Taxpayers Need To Know

The tax filing season for 2025 has seen unprecedented efficiency from the Income Tax Department, with the average refund processing time dropping from 93 days in 2013 to a mere 17 days currently. This remarkable improvement, driven by digital initiatives and automation, has seen over 1.16 crore ITRs filed for AY 2025-26, with 1.09 crore already verified. However, despite this progress, a growing number of taxpayers are expressing concern over delayed refunds, with many waiting three to four weeks post-verification.

Why the Delay? Stricter Scrutiny to Blame

The primary reason for these unexpected delays, say tax experts, is the Income Tax Department's intensified scrutiny process this year. The department is not only examining current-year returns but also old ones, aiming to curb incorrect or fraudulent refund claims. This rigorous verification means that returns flagged for suspicious activity or those requiring additional document checks are experiencing a longer processing time.

Checking Your Refund Status and Lodging Complaints

If your ITR has been filed and e-verified, but your refund remains elusive, taxpayers can easily check its status. Simply log in to the income tax portal and navigate to the "View Filed Returns" or "Refund/Demand Status" section. Ensure your bank account is pre-validated for a smooth transaction.

Should the delay persist without apparent reason, the Income Tax Department offers an "e-Nivaran" facility for online complaints. If necessary, the issue can be escalated to the Centralised Processing Centre (CPC) or your Assessing Officer.

Interest For Delayed Refunds

A silver lining for those experiencing prolonged delays is the provision under Section 244A of the Income Tax Act. This section mandates that if the department issues a refund after the stipulated time, taxpayers are entitled to receive interest on the delayed amount.

The overall tax refund system has witnessed substantial growth, with refunds increasing by 474% from Rs 83,000 crore in 2013-14 to Rs 4.76 lakh crore in 2024-25. While delays can be frustrating, taxpayers are advised to remain patient, regularly check their refund status online, address any deficiencies in their documents, and utilise the available grievance redressal mechanisms to ensure their refund is processed.