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ITR Refund Delay 2025
When your refund doesn’t arrive on time, it creates real stress. Many taxpayers this year felt that familiar knot in the stomach after seeing “Refund under process” for weeks. The CBDT Chairman has finally shared what’s causing the delays and what taxpayers can expect in 2025. His explanation brings clarity, and honestly, a bit of relief.
Why ITR Refunds Are Delayed – 2025 Update
A big reason behind this year’s refund delay is the massive surge in return filings. India recorded one of its highest ITR filing numbers for FY24–25. The CBDT Chairman shared that the system is processing returns at record speed, yet the load is unusually high.
Many returns were also flagged due to mismatches between AIS, TIS, Form 26AS, and what taxpayers declared. These mismatches trigger manual checks, slowing refunds even further.
The department revealed that in many cases, Form 16 values did not match AIS entries. Small errors like interest income mismatch or TDS mismatch ended up pushing refunds into review mode.
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CBDT Chairman Shares the Real Reasons for Slow Refunds
The CBDT Chairman said the Income Tax Department is prioritising accuracy over speed this year. The aim is to ensure zero wrong refunds. This approach led to slower processing, especially for returns where:
- Bank interest wasn’t fully reported
- Capital gains were mismatched
- Foreign income entries need validation
- GST-linked data conflicted with declared business numbers
- High-value transactions triggered risk rules
He also mentioned that AI-based verification tools are being used aggressively in 2025, which means even small gaps between actual and reported data send ITRs for deeper validation.
When Will You Get Your ITR Refund in 2025?
The usual refund timeline is 7–45 days, but this year, many taxpayers crossed 60 days or more.
Based on CBDT’s statement, here’s what you can expect:
- If your return has no mismatch, → refund may arrive within 2–4 weeks
- If AIS/Form 16 mismatch exists → 30–60 days
- If verification or risk checks triggered → up to 90 days
- If you correct a mistake through a revised ITR → expect a longer queue
The Chairman assured that most pending refunds will roll out soon, as bulk processing is happening daily. He added that 2025 will see even faster refunds once new automation features go live.
Common Issues That Trigger Refund Delay
Even a small error can block your refund. The most frequent ones include:
- Incorrect bank details
- PAN not linked with Aadhaar
- Not verifying the ITR within 30 days
- TDS mismatch from banks or employers
- Reporting only Form 16 details without checking AIS
- Claiming deductions that don’t match available data
A taxpayer from Delhi shared that her refund was stuck for 45 days because her employer updated Form 16 late. Another user saw a delay because interest income from two banks wasn’t added in the return.
Real stories show that most delays are minor, yet they feel stressful when money is involved.
Steps to Check Your ITR Refund Status
You can check your refund status in two simple ways:
1. Income Tax Portal
- Visit incometax.gov.in
- Log in
- Go to e-file → Income Tax Returns → View Filed Returns
- Check refund status under “View Details”
2. NSDL Refund Status Page
- Search “TIN NSDL Refund Status”
- Enter PAN + Assessment Year
- You’ll instantly see whether the refund is processed, failed, or pending TIN.
If your refund shows “paid” but not deposited, it’s usually a bank issue. If it shows “pending for processing”, you simply need to wait till validation clears.
2025 Trends: More Automation, Faster Refunds
The CBDT Chairman confirmed that 2025 will be a major year for system upgrades.
New systems will:
- Auto-verify mismatches using bank and employer data
- Reduce manual checks by 40–50%
- Speed up refund credit with real-time validation
- Flag only high-risk returns for manual review
This means refunds in FY25–26 may arrive in 1–2 weeks for most taxpayers. The goal is to bring India’s refund timeline closer to countries like Singapore, which completes processing in days.
My Take
As someone who tracks personal finance news closely, this year’s delay felt frustrating but understandable. The system is handling huge volumes, and mismatches are far more common now because financial data is interconnected from so many sources.
What matters is that the department acknowledges the issue and is working toward faster refunds in 2025. When money is stuck, stress is natural — but clarity helps.
Conclusion: Refunds Are Delayed, But They’re Coming
If your ITR refund is delayed, you’re not alone. The CBDT Chairman’s update gives a clearer picture — mismatches and system checks slowed things down, but the process is moving.
Your money is on the way. Stay patient, keep checking the status, and ensure your AIS and Form 16 match next time. Better accuracy means faster refunds.
FAQs About ITR Refund Delay
1. Why is my income tax refund delayed in 2025?
Ans.: In 2025, many refunds are delayed due to AIS–Form 16 mismatches, high filing volume, and extra verification checks triggered by new risk-based systems. Even small errors like missing interest income or incorrect TDS can slow the refund process.
2. How long does it take to receive an ITR refund in 2025?
Ans.: Most taxpayers receive their refund within 2–4 weeks if everything matches correctly. Cases with AIS mismatches or verification issues may take 30–60 days. High-risk or revised returns can take up to 90 days.
3. How can I check my ITR refund status in 2025?
Ans.: You can check your refund status on the Income Tax Portal under ‘View Filed Returns’ or on the TIN NSDL Refund Status page using your PAN and assessment year. Both show whether the refund is processed, pending, or on hold.
4. What should I do if my ITR refund is stuck?
Ans.: First, check for AIS or Form 16 mismatches. Make sure your bank details are correct, and the ITR is verified. If everything looks fine and the refund is still pending, it may simply be in the queue for processing due to verification rules in 2025.
5. Can an AIS mismatch cause an income tax refund delay?
Ans.: Yes, AIS mismatch is one of the biggest reasons for refund delays. If your bank interest, TDS, or capital gains don’t match the department’s records, your return goes into manual or automated review, which delays the refund.
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Source : Mint & The Finncial Express - ITR Refund Delay FY24-25
✍️ Written by Nikhil Singh
Market & IPO Analyst | Business News Writer | Tech-Auto Observer
Nikhil has been tracking Indian IPOs, consumer brands, tech & automobile overview, and financial trends since 2019. His writing style seamlessly blends market insight with a relatable human voice, making complex data accessible to everyday investors.
