Waiting for your income tax refund for AY 2026-27? 7 reasons why it may be delayed

Many taxpayers who filed their Income Tax Returns (ITRs) early are still waiting for their refunds. If your refund has not been credited yet, there could be several reasons behind the delay. From incorrect bank account details to pending e-verification or discrepancies in your return, even small errors can slow down the refund process.

Seven reasons for refund failure

1. If your PAN is inoperative, your refund will fail, and you will see a warning message to link your PAN with Aadhaar.

2. In case the bank account is not pre-validated.

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

4. Invalid IFSC code.

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

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 Even minor issues like incomplete e-verification, wrong account details, or outdated addresses can delay refunds.

"Delay in refund can happen if taxpayers do not complete the e-verification procedure properly," said CA Gaurav Singh Parmar, Associate Director, Fincorpit Consulting.

7. Refunds can also be delayed if the tax credit in your return doesn’t match your Annual Information Statement.

"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 delay your refund," said CA Gaurav Singh Parmar.

How to check your income tax refund status

1. Visit the Income Tax e-Filing portal.

2. Log in using your User ID (PAN or Aadhaar) and password.

3. Go to e-File, then Income Tax Returns, then View Filed Returns.

4. Select the relevant Assessment Year to view the status of your refund and any updates related to its processing.

What is an income tax refund?

An income tax refund is the amount returned by the income tax department when the taxes paid by a taxpayer exceed their actual tax liability for the financial year.

How long does it take to receive an income tax refund?

According to the tax department, refunds are generally credited to the taxpayer's bank account within 4 to 5 weeks after the return is processed and verified. However, processing time may vary depending on the complexity of the return and the volume of filings.

The Income Tax Department is currently processing a large number of refund claims amid the ongoing filing season. Finance Minister Nirmala Sitharaman recently said that over 1.3 crore refund claims have been received so far, of which 96% have been verified and 40% processed. She also emphasised the need to reduce processing timelines, stating that faster refunds help strengthen taxpayer confidence and improve liquidity.