12 lakh ITR filers did not get income tax refunds in AY 2024-25; here's why

If you have paid extra tax in an assessment year (AY), you can get it back as income-tax refund after filing your income-tax return (ITR). However, lakhs of ITR filers fail to get refunds due to various reasons.

In AY 2024-25, refunds could not be issued to approximately 12 lakh ITRs, according to the Finance Ministry.

In a written reply to a query in the Rajya Sabha, Pankaj Chaudhary, Minister of State in the Ministry of Finance, recently shared the following reasons why tax refunds were not issued in 12 lakh cases.

1. Bank account provided in the ITR is not valid.
2. Refund was sent to the destination bank, but returned.
3. Proceedings for adjustment of refund to outstanding demand under section 245(1) of the Income-tax Act, 1961 are pending.
4. PAN is not linked to Aadhaar.
5. Proceedings for adjustment of refund under section 245(2) of the Income-tax Act, 1961 are pending.

In some cases, the following were the main reasons for pendency of refunds:

1. Reply awaited from taxpayers in respect of notices issued for defective return and other communications.
2. Other cases, involving variance, are at post verification stage.

Knowing the above reasons will help ensure that your tax refunds reach you on time. You should ensure that your PAN and Aadhaar are linked, and that your bank account details are accurate.

The ITR filing for AY 2025-26 will begin in the new financial year, starting from April 1, 2025. Salaried employees will be able to file their returns after receiving Form 16 from employers in June 2025.

How many refunds were issued in AY 2024-25?

In AY 2024-25, the income-tax department issued refunds for 3.56 crore ITRs.

"The number of Income Tax Returns (ITRs) relating to Assessment Year 2024-25, where refund is claimed is 3.98 crore (as on 21.01.2025). Out of this, 3.94 crore ITRs are verified by the taxpayers and hence, are treated as valid. Out of such 3.94 crore ITRs, 3.68 crore refund returns are accounted with refund issued. In 3.56 crore ITRs, refund has been paid to the taxpayers," the minister said.