Can you get income tax refund if your bank account is closed after ITR filing? One taxpayer did it

What happens if your bank account gets closed soon after your ITR? Can your income tax refund get stuck with the Income Tax Department?

While it is rare for taxpayers' bank account to be closed after filing their income tax returns (ITRs), it can happen sometimes, either due to a mistake, financial restructuring, or non-compliance with the bank's rules.

In any of the above cases, the income tax refund may get stuck. However, there is a way out of this situation. Let's understand how this works and also look at a real-life story of a taxpayer whose account was closed after ITR filing and how he eventually received the refund.

Your income tax refund may get stuck if the bank account linked to your income tax return is closed after ITR filing. However, the refund can be credited within hours once you update your new bank account details on the e-filing portal.

Here's a real-life case shared by an X user and acknowledged by the Income Tax Department on October 26, 2025:

Investor Muthukrishnan Dhandapani shared the story of his wife, who received a message from the tax department stating that her refund could not be credited because the bank account was closed. However, the refund was credited within two hours after his auditor updated the relevant details online with the income tax department.

"My wife got a message from income tax department last evening that her refund could not be credited as her account is closed. When I gave our family books to auditor in April, that account was operational. Among the changes we did in last 7 months, closing of that account to was one of the activities. Usually refunds are never credited to the account which was closed but only to another operational account. So we didn't think about it seriously," Muthukrishnan said.

"Informed auditor this morning. They updated the relevant details online with income tax department. Believe it or not, refund has been credited by income tax department within two hours. They have also promptly sent sms and email confirming the same," he added.

The Income Tax Department acknowledged the positive experience shared by Muthukrishnan and also urged taxpayers to keep their profile and bank details updated on the e-filing portal for seamless credit of refunds.

"Thank you for sharing this positive experience. Glad to know that the refund was credited within hours after updating bank details. Feedback like this motivates our teams and helps promote better service outcomes. Taxpayers are encouraged to keep their profile & bank details updated on the portal for seamless credit of the refunds," the Income Tax Department said.