Why Is the Income Tax Refund Delay Happening in 2025?

Income Tax Refund Delay: Income tax refunds for many taxpayers across the country are still pending, even though most have been processed. Many who filed their ITRs for the financial year 2024-25 before the extended deadline of September 16 are still awaiting their refunds.

CBDT Updates on Income Tax Refund Delay

According to CBDT Chairman Ravi Agarwal, low-value refunds are being processed quickly, while scrutiny of high-value refunds is in the final stages. The department's system has flagged some returns that are taking time to complete scrutiny. The Chairman assured that all pending refunds will be processed by December 2025.

An income tax refund represents the amount of excess tax paid by a taxpayer during the year. This often occurs when excess TDS or advance tax is deposited, and subsequent deductions and exemptions are added to reduce the final tax liability.

Meanwhile, those who have not yet received their refund can check their status online.

The Income Tax Department has provided two platforms for this, the Income Tax e-filing portal and the NSDL (Protean) TIN website.

Easy Ways to Know Your Income Tax Refund Status

Check Refund Status on the Income Tax e-Filing Portal: Go to the Income Tax Department's e-filing website. Log in with your PAN and password. Go to the e-file section and select Income Tax Returns, then click View Filed Returns. Your refund status will be displayed along with the relevant assessment year.

Check Refund Status on the NSDL (Protean) TIN Website

• From the NSDL (Protean) TIN website
• Open the NSDL refund tracking website.
• Enter your PAN and select the assessment year.
• Click "Proceed" to display complete refund information.

Typically, refunds are received within 4-5 weeks after the ITR is e-verified. If your refund hasn't arrived after this deadline, be sure to check a few things: whether there are any errors in your ITR or whether you've received any notice from the department.

Belated ITR Filing and Its Impact on Refund Delay

Those who missed the September 16th deadline can now file belated returns until December 31, 2025. Overall, the delay in the refund process is due to strict scrutiny of high-value returns, but the department claims that all refunds will be cleared in the coming months.

Q1: What is an Income Tax Refund Delay?
A: An Income Tax Refund Delay occurs when the refund due to a taxpayer is not credited within the usual timeline. This can happen due to scrutiny of high-value returns, errors in the ITR, or pending verification of deductions and exemptions.

Q2: How long does it take to receive an income tax refund?
A: Typically, refunds are credited within 4–5 weeks after the ITR is e-verified. High-value refunds may take longer due to additional scrutiny by the Income Tax Department.

Q3: Why are some taxpayers still waiting for their 2024-25 refunds?
A: Many high-value returns are under detailed scrutiny. Additionally, system flags or discrepancies in filed ITRs can delay processing. The CBDT has assured that all pending refunds will be cleared by December 2025.