ITR refund delays are a frustrating experience for many taxpayers. Even after filing your Income Tax Return (ITR) on time, your refund might get stuck due to reasons you never expected. Whether you’re a salaried individual or a business owner, understanding why these delays happen—and how to avoid them—is crucial to getting your money back faster.
At Unlock Digi Services, we’ve helped hundreds of clients resolve refund issues quickly and smoothly. This blog uncovers the main causes of ITR refund delays, how to track your refund status, and most importantly, what you can do to prevent them.
What Is an ITR Refund?
An ITR refund is the extra amount paid to the Income Tax Department—usually as advance tax, TDS, or self-assessment tax—that exceeds your actual tax liability. Once your return is processed and verified, this excess amount is refunded directly to your linked bank account.
For example, if your employer deducts ₹40,000 in TDS but your total tax liability is only ₹32,000, the remaining ₹8,000 will be refunded—provided there are no errors or delays in your return.
Why Are ITR Refunds Getting Delayed?
Here are the most common reasons for ITR refund delays:
1. Incorrect Bank Details
Even one wrong digit in your account number or IFSC code can prevent your refund from being credited.
2. Mismatch in TDS Details
Discrepancies between your Form 26AS / AIS and what you declared in your return can lead to processing delays.
3. E-Verification Not Completed
If you haven’t e-verified your return, the Income Tax Department will not start processing it.
4. Return Under Review or Scrutiny
High-value refunds or mismatched figures may trigger a manual review by the tax department.
5. Wrong ITR Form Used
Using the incorrect ITR form (e.g., ITR-1 instead of ITR-3) may cause delays or even rejections.
How to Track Your ITR Refund Status
Tracking your refund status is simple and can be done through either the Income Tax portal or the NSDL website.
On the Income Tax Portal:
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Visit: https://www.incometax.gov.in
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Log in using your PAN and password
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Go to: Services > Refund Status
On the NSDL Website:
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Visit: https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
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Enter your PAN and Assessment Year
These platforms will show whether your refund is approved, sent to the bank, or still under processing.
How Long Does It Take to Receive an ITR Refund?
Generally, refunds are processed within 20 to 45 days after successful e-verification. However, in some cases—especially where scrutiny is involved—it may take up to 60 days or more. If your refund is delayed beyond this, you can raise a grievance on the income tax portal.
How to Prevent ITR Refund Delays – Pro Tips
At Unlock Digi Services, we recommend these best practices:
- File Early
Avoid last-minute filing rush by submitting your return before the deadline. - Double-Check Bank Details
Ensure your account number, IFSC code, and bank linkage with PAN are accurate. - Match Your TDS with Form 26AS
Always cross-verify your income and tax deductions before submitting your return. - Choose the Correct ITR Form
For example: Salaried individuals – ITR-1, Freelancers and professionals – ITR-3 or ITR-4, Companies – ITR-6 - Complete E-Verification Within 30 Days
Use Aadhaar OTP, net banking, or electronic verification code (EVC) methods to complete the process.
For Businesses: What to Watch Out For
Businesses often face ITR refund delays due to: GST or TDS mismatches, late audit submission, PAN-TAN mismatch, bulk transaction reporting errors. We help business owners with: ITR filing for proprietors, partnerships, LLPs, and companies; TDS reconciliation; books of accounts and audit support; refund follow-ups and grievance filing.
How Unlock Digi Services Can Help
We offer personalized ITR filing and refund tracking for both individuals and businesses. Our services include: assessment of refund eligibility, accurate form selection, verification of Form 26AS and AIS, bank account validation, refund status monitoring and follow-up, and grievance filing if delays occur. Our experts ensure compliance, accuracy, and faster refund processing.
