Many taxpayers who filed their Income Tax Returns (ITR) for AY 2025-26 continue to wait for their ITR refund even as the Income Tax Department maintains that processing is underway. Smaller refund amounts have already been credited. A section of filers has reported no movement on the portal for weeks, prompting concerns over the widening delay.

Senior officials say such staggered timelines are not uncommon, especially in cases where the system detects inconsistencies. But confusion persists among taxpayers over why some refunds are being issued promptly while others remain in limbo.

Suspicious Claims Under Scanner, Says CBDT Chief

Central Board of Direct Taxes (CBDT) chairman Ravi Agrawal has attributed a portion of the delay to enhanced scrutiny of deduction and refund claims that appear doubtful. According to him, several returns this year carried claims that did not match the underlying financial information, prompting the system to pause automatic processing.

The department has also asked certain taxpayers to file revised returns where essential information was missing. Officials say refunds in such cases will be released only after the updated data is examined.

Small Refunds Released; Larger Ones Face Verification Cycle

Agrawal has indicated that refunds involving lower amounts have already been issued, while higher-value refunds are taking longer due to additional checks. The department reportedly identified numerous cases in which refund claims or deduction figures were incorrect, necessitating a closer look before releasing funds.

According to him, refund processing remains a continuous exercise, and the remaining claims are expected to move ahead as the scrutiny cycle is completed.

How to Track ITR Refund Status on the Portal?

Taxpayers still waiting for movement can monitor their refund status through the Income Tax e-filing portal.

The steps include:

1. Log in using your credentials.
2. Navigate to e-File → Income Tax Returns → View Filed Returns.
3. Select the appropriate assessment year.
4. Click View Details to see the refund status and the full processing life cycle.

The portal displays the exact stage of the return, whether it is under processing, completed, or awaiting refund initiation.

Four Possible Status Messages to Expect

As per the department, taxpayers may see one of the following outcomes on the portal:

• Refund Issued: Amount credited to the validated bank account.
• Refund Partially Adjusted: A portion set off against outstanding dues.
• Full Refund Adjusted: Entire refund used to settle past tax demands.
• Refund Failed: Transfer could not be completed due to bank-related issues.

These messages offer the first clear indication of what has caused the delay, if any.

Frequent Errors Slowing Down Refunds

Officials say many refund delays stem from avoidable mistakes or outdated bank information. Common issues this year include:

• Incorrect tax calculations or discrepancies in return data.
• Missing or inconsistent details requiring manual review.
• Bank account not pre-validated on the portal.
• Name mismatch between the bank account and PAN.
• Wrong or inactive IFSC codes.
• Closed or inactive bank accounts linked for refund.

Any of these can hold up the credit even after the tax return is processed.

What Taxpayers Should Do Now?

The department advises taxpayers to regularly check the refund status on the portal and ensure their bank account is validated. Those who have received a prompt from the Income Tax Department to file a revised return must do so to move their claim forward.

Officials maintain that the system is gradually clearing pending cases, starting with smaller refunds and moving towards those requiring verification. For taxpayers still waiting, the next steps largely depend on whether their return carries discrepancies or whether the bank details need correction.

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