Income tax refund arises when the tax you paid to government is more than what you are supposed to pay. Government collects taxes through TDS, advance tax at the time of filing the returns.
Refund can be claimed at the time of filing the returns. Usually, the refund is processed within 4 to 5 weeks from the date of filing the returns. Read on to learn about the refund process, the usual time it takes, how to check your refund status, and what to do if it’s taking longer than expected.
What is Income Tax Refund?
- An Income Tax Refund is issued by the Income Tax Department if a taxpayer has paid more income tax than was due for the financial year.
- Normally, the tax is paid by the assessee at the time of filing returns after he assessess the tax liability by himself. This is the concept of Self-Assessment.
- But the actual tax liability and the tax amount paid may not be the same in all the cases due to a few factors.
Income Tax Refund = Total Taxes paid – Total Tax Liability
How does a Refund Situation Arise?
- Tax payment not only occurs at the time of filing the returns. It also occurs during the year when
- When the payer deducts TDS amount and directly pays it to government or
- When Advance tax is paid as per provisions of the act .
- In some cases, an income tax refund can also arise in case the tax liability is reduced by claiming deductions, exemptions, set off of losses, or tax credits while filing the income tax return.
Is There Interest on Refund in case of Delay in Refund Processing?
Post-filing, the Income Tax Authorities assess the taxpayer’s tax liability. In case the tax liability assessed exceeds the amount paid, the excess tax paid is refunded to the taxpayer along with interest at 0.5% per month or part of the month (i.e. 6% per annum) until the date of refund.
Income Tax Refund – An Illustration
On 1st April, 2024, Mr. X has estimated that Rs. 10,00,000 would be taxable income for the financial year 2024-25. He is a freelancer. He paid the taxes in the following situations.
- TDS was deducted at Rs.10,000 by his customer
- Advance tax of Rs. 50,000 was paid by him, during the financial year as per the provisions.
At the end of the financial year, his taxable income turned out to be Rs.9,00,000. So, his overall tax liability was reduced. The tax liability was Rs.41,600 as per applicable slab rates. (including cess).
| Particulars | Amount(Rs) | Amount(Rs) |
| Tax Liability | 41,600 | |
| (Less) – Tax Already Paid: | ||
| TDS | 10,000 | |
| Advance Tax | 50,000 | |
| Total Tax Paid | 60,000 | |
| Refund (Receivable) | 18,400 |
The excess amount will be refunded along with interest at the rate of 0.5% per month or part of the month.
How to Check your ITR Refund Status for AY 2025-26?
If you are concerned about your tax refund status, you can check the status of the income tax refund in three different ways, here are the methods listed below.
1. Through the Income Tax Portal
Step 1: Visit the income tax portal and log in to your account
Step 2: Click on ‘e-File’, choose ‘Income Tax Returns’ and then select ‘View Filed Returns’
Step 3: You can see the status of your current and past income tax returns.
Step 4: Click on ‘View details,’ and you’ll see the status of your income tax refund, as shown in the picture below.
2. Through NSDL Portal
Step 1: Visit the NSDL Portal
Step 2: Enter your PAN details, select the Assessment Year from the drop-down option for which tax refund is awaited and enter the Captcha Code
Step 3: Click ‘Proceed’ under the ‘Taxpayer Refund (PAN)’ option
You will be directed to a page that displays the ‘Refund Status’.
3. Through TRACES
Step 1: Log in to the income tax portal
Step 2: Click on ‘e-File’, select ‘Income Tax Returns’ and hit ‘View Form 26AS’
Step 3: You will be directed to the TDS Reconciliation Analysis and Correction Enabling System (TRACES) page, and Click on ‘View Tax Credit (Form 26AS/Annual tax statement) at the bottom of the page
Step 4: Select the Assessment Year from the drop-down menu, and select view as ‘text’
You are directed to a page that displays the details of the paid refund
Why my Refund is Delayed?
- If the tax payer is eligible for refund, the department usually credits the refund in the bank account within 4-5 weeks. More often than not, the refund is credited well before this time frame.
- If the refund credit is getting delayed, in other words, the refund is awaitedbeyond this time, the following steps are recommended
- Check if the bank account details furnished are correct and it is duly pre-validated.
- Confirm that the bank account provided is in your name and the spelling is correct
- Check if the bank account is still active. If you have changed the bank account anytime post filing the return, update it on the portal.
- The refund request might be rejected by the department because of
- Error in filing the returns
- Mismatch between the returns filed and Form 26AS.
- You can login to your income tax portal, login to e-filing portal > e-File > Income Tax Returns > View filed returns. If you have any intimation or notices, you can find it there.
- If the returns are filed close to due date, due to high volume of return filing, the refund might be delayed.
You can raise a grievance at the income tax portal if there is undue delay in refund processing.
What Does my Refund Status Mean?
Here’s a list of different types of status of refund with meanings:
| S.No | Status | Meaning |
| 1. | No Result Found | This means that, according to the IT department, no records were found for the ITR filed, and the PAN and acknowledgement number added need to be cross-checked. |
| 2. | Refund is already credited to your prevalidated bank account. | This states that the refund is already credited. In case of any doubt, contact: |
| CMP, State Bank of India | ||
| Address: Survey No.21 Opposite: Hyderabad Central University, Main Gate, Gachibowli, Hyderabad -500019 | ||
| 3. | Refund Cheque is already encashed | Your income tax refund is processed and credited to your bank account. If you have not received it, please contact: |
| CMP, State Bank of India | ||
| Address: Survey No.21 Opposite: Hyderabad Central University, Main Gate, Gachibowli, Hyderabad -500019 | ||
| 4. | Refund not determined | According to IT Department, no refund was determined in this case. |
| 5. | Unable to credit refund as the account number provided is incorrect | This clearly states that the bank account number provided is incorrect. You need to apply for refund reissue by providing a prevalidated account number. |
| 6. | Defective return u/s 139(9) (or) ITR filed is defective or incomplete | This shows that the ITR filed was defective under the Income Tax Law. Please check on the e-filing website to find the correct reason. |
| 7. | ITR Processed but need to submit rectification request | There might be a mismatch in the calculation done by department and ITR filed. File a rectification request justifying the refund claimed. |
| 8. | Return submitted. ITR Transferred to Jurisdiction AO | This implies the return will be processed by the jurisdictional AO. Contact the AO and make the necessary submissions to claim the refund. |
| 9. | Pending for e-verification | This means that the ITR was submitted successfully but not e-verified within 30 days of ITR submission. Verify to process the return and claim the refund. |
| 10. | Processed with no demand/refund | It shows that the ITR is processed without any demand or refund. To understand this, check the intimation order u/s 143(1) on your email id. |
| 11. | Processed with demand due | In this case the return is processed and there is demand, i.e. tax payable to the IT department. To understand this, check the intimation order u/s 143(1) on your email id. Also, submit the response to this through the e-filing website under the e-file->Response to Outstanding Tax Demand. |
| 12. | Processed with refund due | This implies that the return is processed with refund and it will be credited in some days in the pre-validated bank account. |
| 13. | Refund Failure | Due to incorrect bank account details, the refund was not credited successfully. Please apply for refund reissue under “My account” -> Service -> Refund Reissue Request |
| 14. | E-Return for this PAN and Acknowledgement Number has been digitally Signed | The ITR is digitally signed and filed successfully. |
| 15. | Under Processing | This means that the income tax department has still not processed your income tax return. Please check your refund status after a month to see if it has been updated. |
| 16. | Refund Issued | This means the income tax department has sent the refund to you (by cheque or by direct credit to the bank account number you provided while e-filing). No further action required. |
| 17. | Return Submitted and Verified | The return is submitted and verified. So, wait for some days for the refund to be credited. |
| 18. | Invalid original return, File Revised Return | The return was treated as invalid and there is a need file a revised return to claim the refund. |
| 19. | Return Processed and Rectification Rights Transferred To Assessing Office | This implies that the return was processed and transferred to jurisdictional AO. So, filing an offline rectification request to the AO will help you get the refund. We can connect you to an expert who can help you file a rectification. |
| 20. | Return Processed. Refund Adjusted Against Demand (or) Refund kept on hold, Intimation u/s 245 is issued proposing adjustment of refund towards outstanding demand. | In this case if any tax payable is outstanding with the department, then the IT department will adjust the refund first against the demand. But before they adjust, a notice u/s 245 will be sent to you for your confirmation. If the response is not submitted the department goes ahed with adjusting the demand. In this case our expert CAs can help you get the refund. |
| 21 | ITR Accepted | ITR is successfully received and pending for processing |
| 22 | ITR-V rejected | This shows that the return filed is defective. |
| 23 | Return Submitted and verified after the due date. | The ITR filed was received after 30 days of filing, so the return needs to be filed again. |
| 24 | Successfully e-Verified after due date | The IT department has received a condonation request filed in respect of the return e-verified after 30 days. The return is transferred to AO and till it is approved, it is treated as invalid. |
| 25 | Rectification processed with refund due | The rectification request is processed with refund. |
| 26 | Rectification processed with no demand/refund | The rectification request is processed successfully with no demand/refund. |
| 27 | Processed and partially refund adjusted | The refund is partially processed by adjusting it with the tax payable in the previous years. However, the department sends the notice u/s 245 to get your confirmation before adjusting. |
| 28 | Under Processing Original return will not be considered, as revised return is taken up for processing | Once a revised return is filed, it replaces the original return filed. So this shows that revised return is under processing. |
| 29 | Another Return filed | Another return was file, check with the other acknowledgement number. |
| 30 | Refund Re-issue failure | Refund reissue request was failed due to some incorrect details. Raise the new request to get the refund. |
| 31 | Rectification filed | Rectification request has been filed and its processing |
| 32. | Refund is determined – Yet to be shared with the Refund banker | Refund amount is determined and validated by the department. The department now verifies the bank account of the taxpayer. If the bank account is valid and correct, the refund amount is credited to the taxpayer’s bank account. If the bank account is found invalid or incorrect, it is intimated on the portal. |
| 33 | Restricted Refund | Arises due to mismatch between name as per PAN and bank account. |
How to Request for Refund Re-issue?
In the case of refund failure, you can raise the refund re-issue request in the e-filing portal by following the steps below:
Step 1: Login to ‘e-Filing’ Portal
Step 2: Click on Services menu and click on ‘Refund reissue’
Step 3: Create Refund Reissue request
Step 4: You will get the details of Assessment Year for which refund got failed
Step 5: Select the Assessment Year and click on continue
Step 6: You will get the bank details in the next page. Validate the bank account if it is not validated
Step 7: Click on the ‘Submit’ button and submit the request
Is the Income Tax Refund Taxable?
No, the refund amount is not taxable. But, the interest received on the tax refund is taxable. The rate of tax on the interest would be as per your applicable tax slab rate.
What is the Time Duration for a Tax Refund?
The time taken to receive the income tax refund entirely depends on the Income Tax Department’s internal process. Generally, it takes around 7 to 120 days, with an average time of 90 days after you have e-verified your return. The Income Tax Department implemented a new refund processing system to enable faster refund processing with an expected turnaround of a few days instead of a few months.
What is the Mode of Receiving the Refund?
The Income Tax Department will send the refund amount through electronic mode (direct credit to the account) or through a ‘Refund Cheque’. You must enter the correct bank account number and IFSC code with complete address details, including the PIN code, at the time of filing your return to receive refunds. Refunds sent through cheques are dispatched to the address mentioned in the ITR through speed post.
What is the Interest on Income Tax Refund?
When the refund amount is more than 10% of the total tax payable for that particular year, you will receive a simple interest on the tax refund. Interest is computed at 6% per annum (0.5% per month or part of the month) on the refund amount. Here’s how the interest on refund is computed:
Interest on refund received is a taxable income and considered for income tax calculation in the year it is received.
How to Claim Refund for Missed ITR Filing on Due Date?
The deadline to file your ITR for non-audit cases was 31st July 2025. However, if you cannot manage to file your taxes before the deadline, you can still file a late return, known as Belated Return. The last date to file a belated return is 31st December 2025. You can claim your tax refund through a belated return.
Income Tax Refund Helpline
You can contact the ‘Aaykar Sampark Kendra’ for any queries regarding income tax refunds. The toll-free helpline of the Aaykar Sampark Kendra Kendra is – 1800-180-1961. You can even send a mail with your refund query to refunds@incometax.gov.in.
For refund-related queries or modifications in the refund record processed at CPC Bangalore, you can contact – 1800-425-2229 or 080-43456700. For any payment-related query, contact the SBI Contact Centre toll-free number at –1800-425-9760.
