Income Tax Refund FY 2024-25: Delay reasons by CBDT, expected payment timeline, status check, and more

This article details the exact reasons for the current delays, provides the expected payment timeline from the tax authority, and offers a step-by-step process on how to check your refund status.

Key reasons for income refund delays (FY 2024-25)

The delays are primarily due to increased due diligence by the Income Tax Department (ITD) on specific categories of returns.

1. The tax department is conducting a deeper examination of returns where a large refund is claimed to ensure its legitimacy.

2. The system automatically flags returns with suspected wrongful or questionable deductions, requiring a manual review to verify the claims.

3. The department's analysis has already found instances of incorrect or excessive deduction claims, which slow down the process as these cases need to be individually analysed and processed.

4. The income tax department has contacted certain taxpayers, urging them to file a revised return to correct missed or incorrectly reported details, which is a necessary step before the refund can be processed.

When are pending income tax refunds expected to be paid?

The CBDT chairman has said that the majority of the remaining refunds are expected to be credited by the end of November or by December 2025.

Simple returns, correctly filed and e-verified promptly with no discrepancies, are generally processed quickly.

Interest paid on income tax refund delay

How to check income tax refund status

• Visit the income tax e-Filing Portal (https://www.incometax.gov.in/iec/foportal/)

• Log in using your PAN/Aadhaar and Password.

• Navigate to e-File, then Income Tax Returns, View Filed Returns.

• Select the relevant Assessment Year (AY 2025-26).

• Click "View Details" to see the current status of your ITR and refund.

While processing speed has been impacted by enhanced scrutiny, the CBDT remains committed to releasing the bulk of the pending refunds by December 2025.

Meanwhile, if you missed the September 16 deadline, you can file a belated return until December 31, 2025.