ITR Filing FY 2024-25: Why Is My Income Tax Refund Not Credited Yet? ITR Refunds Delay Explained

The Income Tax Return (ITR) filing season for FY 2024-25 is in full swing, but millions of taxpayers are still anxiously waiting for their ITR refunds in 2025. Even though the government has extended the ITR filing last date for non-audit cases to September 15, 2025, delays in refund processing have become a big concern this year. Here's why ITR refund may be delayed in Assessment Year 2025-26 and what taxpayers can do to fix it.

Why Are ITR Refunds Delayed in 2025?

Basically, an income tax refund is the extra money that the Income Tax Department gives back to you if you've paid more tax than what you actually owed. This extra payment could be because of TDS (Tax Deducted at Source), TCS (Tax Collected at Source), Advance Tax, or Self-Assessment Tax.

The refund process starts only after you e-verify your income tax return. Normally, it takes about 4 to 5 weeks for the refund to reach your bank account. However, this year several factors are contributing to slower refund disbursals for the taxpayers.

Rajnish Jaiswal, a CMA finalist, explained, "This year, the Income Tax Department released ITR-1 and ITR-4 forms only in late May 2025. While the other complex forms, like ITR-2 and ITR-3, came out as late as July which is a major reason for backlog in return submissions and refund processing."

"The ITR portal has been updated this year, FY 2024-25, and the Income Tax Department has improved its systems to run automated checks. Earlier, the ITR filing process was very easy, but now the process has become stricter. There's more scrutiny this time," he added.

"Refunds can get delayed if there are mismatches between your ITR and the AIS or Form 26AS, or if you've claimed a large refund or made mistakes during tax filing. The government is also now checking fake or big claims, which have increased in recent years as the system can now catch such issues much faster with the help of advanced AI technology," Rajnish further stated.

Other Common Issues Causing ITR Refund Delays

Apart from the above-mentioned causes, another reason for the delayed refund could be, because the default tax regime in FY 2024-25 has been shifted to the new tax regime. This, along with newly added form fields and compliance rules is causing confusion and errors during tax filing that is further slowing refund processing.

Additionally, many ITR refund failures can happen if PAN is not linked with Aadhaar or the bank account is not verified on the e-filing portal. These can potentially lead to refund rejections or refunds stuck in processing.

If you have unpaid taxes or pending assessments from previous years, your current refund can be legally held back until those issues are resolved.

Taxpayers who file early using simpler forms like ITR-1 or ITR-4 and who have all their details correct usually get their refunds within 7 to 20 days. On the other hand, those using more detailed forms like ITR-2 or ITR-3, claiming larger refunds, or including details like HRA or capital gains, may have to wait longer for their ITR refunds.

How to Avoid Further Delay in ITR Refunds?

• To avoid further delays in your income tax refund in 2025, make sure to e-verify your ITR immediately after filing, as refunds are processed only after verification.
• Next, pre-validate your bank account on the Income Tax portal to ensure the refund can be credited without issues. Also, link your PAN with Aadhaar, as unlinked accounts may lead to refund failure.
• Before submitting your return, carefully cross-check the details to avoid mismatches.
• Lastly, if you receive any notice or alert from the Income Tax Department, respond quickly to resolve the issue and speed up your refund process.