Tax Refund Delayed for AY 2025-26? Here’s How to Track, Lodge Complaints, and Speed Up Your Payment
Why Are Tax Refunds Delayed This Year?
The Income Tax Return (ITR) filing season for AY 2025-26 started late due to delays in releasing key ITR forms and technical upgrades in the Income Tax Department’s backend systems. Only ITR-1 and ITR-4 utilities were available by end of May, leaving many taxpayers waiting to file or get their refunds processed.
- Backend system upgrades to accommodate new tax slabs and compliance rules have also slowed processing.
- Mistakes like wrong bank details, incomplete disclosures, or unverified returns can further delay refunds.
How to Track Your ITR Refund Status
Step 1: Online Tracking
- On the Income Tax Portal
Visit incometax.gov.in, log in, and check the ‘Refund/Demand Status’ under your account dashboard. - Via NSDL Website
Go to the NSDL refund tracking page and enter your PAN and assessment year.
Step 2: Bank Account Verification
If the portal shows “refund issued” but money hasn’t reached your account:
- Double-check your bank account number and IFSC code on the portal.
- Use the “Prevalidate Bank Account” option to ensure your account is correctly linked and verified.
- Remember, SBI handles all refund payments; if needed, contact your local SBI branch.
What Causes Refund Delays?
- IT System Upgrades:
Technical updates post-budget 2024 mean processing is slower as systems are updated for new rules. - Incorrect Filing:
Errors in ITR forms, mismatched income details, or unverified bank accounts can freeze your refund. - Backend Bottlenecks:
High volume of filings and pending forms (like ITR-2, ITR-3) mean slower overall processing.
What to Do if Your Refund Is Stuck
1. File a Complaint Online
- Use the e-Nivaran portal or CPGRAMS to raise a grievance.
- Provide details: PAN, assessment year, acknowledgment number, bank info, and contact number.
- Select the complaint category as “Refund not received” and describe your issue.
2. Escalate If Not Resolved
- If there’s no response in 15-20 days, escalate to a higher officer via CPC-Bangalore, your Regional Income Tax Office, or the IT Department’s official social media channels.
Tips for Getting Your Tax Refund Faster
- File early and e-verify your return immediately. Refund processing only starts after e-verification.
- Choose the correct ITR form: Salaried taxpayers use ITR-1, business owners use ITR-3 or ITR-4.
- Verify your bank account via the portal before filing.
- Check refund status every 7-10 days and act quickly if there are discrepancies.
- Respond promptly to any notices from the department for additional details.
Benefit of Extended ITR Deadline and Refund Interest
The ITR deadline has been extended to September 15, 2025 (from the usual July 31).
- If there’s a refund delay, taxpayers are entitled to interest under Section 244A—so you may get additional interest with your refund.
- However, the government faces a higher payout burden, making timely and accurate filing even more important for everyone.
Final Checklist for Taxpayers
- Track refund status online regularly.
- Update and verify bank account details.
- Lodge a complaint if delayed using e-Nivaran or CPGRAMS.
- Escalate unresolved issues after two weeks.
- File accurate, complete returns to avoid unnecessary delays.
Being proactive and well-informed is the best way to receive your tax refund quickly, even during technical upgrades and system delays.
