All your queries related to income tax refund answered here: 13 FAQs you must read

Whether you are waiting for your refund, unsure about the status, or confused about delays, this guide breaks everything down and is clear so you know exactly what to expect and how to resolve issues quickly.

1. What is an income tax refund?

An income tax refund is the amount initiated by the income tax department when the taxes paid exceed the actual amount due (either by way of TDS, TCS, Advance Tax, or Self-Assessment Tax). The tax is calculated after taking into consideration all the deductions and exemptions at the time of assessment by the income tax department.

2. When does the refund get processed?

Refund processing by the tax department starts only after the return is e-verified by the taxpayer. Usually, it takes 4-5 weeks for the refund to be credited to the account of the taxpayer. However, if the refund is not received during this duration, the taxpayer must check for intimation regarding discrepancies in ITR; check the email for any notification from the IT department regarding the refund.

3. Why are income tax refunds delayed this year?

Income tax refunds have been experiencing prolonged delays this year, with many taxpayers still awaiting their payments.

4. What has the CBDT said about when refunds will be credited?

5. Are low-value refunds being processed?

"Low-value refunds are being released. We have analysed and found that some wrong refunds or deductions were being claimed. So, this is a continuous process. We hope to release the remaining refunds by this month or by December," Agrawal had told reporters after he inaugurated a taxpayers' lounge at India International Trade Fair (IITF), PTI reported.

6. What are the reasons behind the delay in income tax refunds?

CBDT flagged these reasons for the delay

Some returns were red-flagged by the system due to suspected wrongful or questionable deductions, prompting additional verification.

The department found instances of incorrect or excessive deduction claims, slowing down the refund process as these cases are being analysed.

The department has written to certain taxpayers, asking them to file revised returns if they had missed or incorrectly reported details. "We have also written to the taxpayers to file a revised return in case they have forgotten something," he said.

7. What are the prerequisites for availing the refund status service?

Valid User ID and Password

PAN is linked with Aadhaar number

ITR filed claiming refund

8. How do I check my refund status on the e-Filing portal?

• Go to the e-Filing portal homepage.

• Enter the user ID and password.

For individual users, if PAN is not linked with the Aadhaar, you will see a pop-up message that your PAN is made inoperative as it is not linked with your Aadhaar. To link the PAN with Aadhaar, click on Link Now button else click Continue.

• Go to e-File tab > Income Tax Returns > View Filed Returns.

• Now you can check the refund status for the desired Assessment Year. Click on View Details and here you can also check the life cycle of filed ITR.

9. What does “Refund is issued” mean?

This status appears when the refund has been successfully issued by the Income Tax Department.

10. What does “Refund is partially adjusted” mean?

This status appears when part of the refund has been adjusted against any outstanding demand, and the remaining amount is issued.

11. What does “Full refund adjusted” mean?

This status appears when the entire refund amount has been adjusted against an existing demand.

12. What does “Refund failed” mean?

This status appears when the refund could not be credited to your bank account.

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.

13. What are the other reasons for refund failure?

In addition to above, a refund from the Income Tax Department scheduled to be paid may fail to get credited to your bank account for the following reasons:

In case the bank account is not pre-validated. It is now compulsory to pre-validate your bank account.

The name mentioned in the bank account does not match with PAN card details.

In case of an invalid IFSC code.

If the account that you have mentioned in the ITR has been closed.