ITR refund time can be based on several factors like how you file your return (online or offline), accuracy of details provided, scrutiny requirements and the efficiency of processing by the tax authorities.
If there are no discrepancies and everything is in order, refunds can be processed within a few weeks to months after filing.
The due date for submitting ITR for the AY 2025-26 is 15th September 2025. To claim any eligible tax refunds ensure timely filing.
What is Income Tax Refund?
An income tax refund is the amount that an income tax department returns when the taxes paid (through TDS, TCS, Advance Tax, or Self-Assessment Tax) exceed the actual tax liability. This refund is determined after assessing all eligible deductions and exemptions during the tax evaluation process.
Processing Time
The income tax department begins processing a refund only after the taxpayer e-verifies their return, and it typically takes 4–5 weeks for the amount to be credited. If the refund is delayed, the taxpayer should verify if they received any discrepancy notices from the department, check their registered email for updates, or track the refund status via the e-filing portal using the prescribed procedure.
For Different ITR forms
| ITR 1 and 4: ITR refund processed within 20-45 days if there are no demands or refunds. If a TDS refund is claimed, processing may be delayed. ITR 2 and 3: Generally refund processed within 45-60 days. |
Eligibility Criteria for Refund Processing
To avail this service, ensure you meet the following requirements:
- A valid user ID and password for the e-filing portal
- PAN linked with Aadhaar
- Income Tax Return (ITR) filed with a refund claim
How to Claim an Income Tax Refund?
To claim a refund:
- The first is to e-file your ITR. Upload all the declare income such as from salary, house property, capital gains, or other sources, and claim eligible deductions (e.g., u/s 80C, 80D).
- Once filed, the ITR must be e-verified within 30 days using methods like Aadhaar OTP, net banking, or Electronic Verification Code (EVC).
- Refunds are credited only to a pre-validated bank account linked to the taxpayer’s PAN.
- To pre-validate, log in to the e-filing portal, navigate to the ‘Profile’ section, and verify bank details.
Is Income Tax Refund Taxable?
The income tax refund amount received from the IT department is not taxable because it is the excess amount of tax that you have paid taxes above than your actual liability.
Process/Step-by-Step Guide To Check Refund Status
If you’re expecting a refund and have not received it yet, then you can check the status on the Income Tax Department’s portal:
Step 1: Go to the e-Filing portal homepage.
Step 2: Enter the user ID and password.
If PAN is not linked with Aadhaar, a pop-up message will inform you. You can choose to link them or continue.
To link the PAN with Aadhaar, click on Link Now button else click Continue.
Step 3: Go to e-File tab > Income Tax Returns > View Filed Returns.
Step 4: Now you can check the refund status for the desired Assessment year.
Click on “View Details” to check the status and life cycle of your filed ITR.
- Refund Status Types
- Refund Issued
- Refund Partially Adjusted
- Full Refund Adjusted
Note: If your PAN is inoperative, your refund will get failed and you will see a warning message to link your PAN with the Aadhaar.
How to Request for Refund Re-issue?
If refund fails due to the incorrect bank details, taxpayers can create a refund reissue request:
- Log in to the e-filing portal, go to ‘Services’ > “Refund Reissue”
- Create a Refund Reissue request.
- Select the Assessment Year and validate the bank account if not validated.
Key Factors That May Impact IT Refund Processing Time
- E-verification Mandatory – Your ITR filing is only complete after e-verification, and the refund process starts post this step.
- Data Consistency – Mismatches between your ITR and tax department records (Form 26AS, AIS, TIS) can lead to processing delays.
- Bank Account Validation – A pre-validated, PAN-linked bank account is essential — errors here are a leading cause of refund failures.
- Return Complexity – Basic returns (e.g., ITR-1) process faster than complex filings (ITR-2/3) involving capital gains, business income, or foreign assets.
- Filing Volume – Refunds filed near deadlines may take longer due to higher processing loads.
- Scrutiny Triggers – Returns flagged for manual review (e.g., for large deductions or unusual transactions) face extended timelines.
| Also Read – ITR Processing Time For AY 2025-26 |
FAQs
Generally it takes 4-5 weeks to credit the refund to the taxpayer’s account.
If details are incorrect it can lead to non-receipt of the refund. Ensure your account details are correct to receive your refund.
Your ITR might be under processing because the information you submitted doesn’t match with Form 26AS or the Annual Information Statement (AIS).
Refund initiated by the IT department if you have paid taxes above than your actual liability. Tax is calculated considering all deductions and exemptions during assessment.
• If PAN is inoperative, refund will fail and a warning message will prompt linking PAN with Aadhaar.
• If bank account not pre-validated
• Name in the bank account does not match PAN details.
• Invalid IFSC Code.
• The account mentioned in ITR is closed.
