Income tax refund delayed? Here are the reasons why your ITR refund might be stuck

It’s been over a month since many taxpayers filed their ITRs. but for a large number, the refund still hasn’t arrived. This year, it seems the refund process is moving more slowly than usual, and people are starting to notice.

On social media platform X, users are sharing their frustration. Some say they’ve been waiting since June, while others mention they urgently need the money for medical or personal emergencies, but the refunds are still pending.

Chartered Accountants point out that only around 37% of ITRs have been processed, and progress appears to have stalled.

Several individuals report waiting since June or July, with some needing their refund urgently for emergencies.

Some even accuse the authorities of making public claims about speedy refunds that don’t reflect the on-ground reality.

What’s been your experience? Did your refund come through, or are you still waiting too?

Reasons for the delay in ITR refund

Another common reason for refund delays is incorrect bank details. Due to bank mergers and IFSC code changes, refunds can bounce if your linked account can’t accept the transfer. You’ll usually get an email alert in this case. To fix it, update your bank details under “My Bank Details” in your income tax profile and request a “refund reissue.”

Even minor issues like incomplete e-verification, wrong account details, or outdated addresses can delay refunds.

"Another time, just an almost trivial delay can happen if taxpayers do not complete the e-verification procedure properly, or there might be an erroneous account number entering, or an outdated mailing address available. The tax department then preferred accuracy over speed, whereas they filter out untrue claims prior to disbursement of refunds," said CA Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited.

Refunds can also be delayed if the tax credit in your return doesn’t match your Form 26AS or Annual Information Statement. If this happens, the department may hold your refund until you resolve the mismatch by raising a grievance with the CPC.

"Any discrepancy, even the slightest mismatch, between the amount declared in the return by the taxpayer and the amount reported by employers, banks, or financial institutions may raise a suspicion warranting further examination," he added.

So, it's advised that taxpayers not wait for the last day, September 15, to file their returns as this can further worsen delays with millions of returns waiting in line, ready to be processed.