Income Tax Refunds FY 2024-25: Here’s Why They’re Delayed and How to Track Yours Online
This financial year, 2024-25, the speed of clearance of the income tax refunds has been slower in comparison to earlier, adding one more cause of tension to taxpayers’ minds. In this context, Ravi Agrawal, the CBDT (Central Board of Direct Taxes) Chairman, has tried to give some relief to taxpayers. He has assured all the taxpayers by stating that soon all the pending refunds will be released. The income tax department is right now doing a detailed analysis of the fake deductions claimed in some cases, which may delay the release of refunds. The tax department is likely to settle down almost all legitimate outstanding refund claims by December 2025.
Reasons Behind Delayed Refunds This FY?
This financial year, the Central Board of Direct Taxes (CBDT) is conducting a little in-depth verification of refunds falling under certain criteria, like refunds pointed out as “high-value” and “red-flagged”. Now, most of the taxpayers must be wondering why scrutiny is so high this year. So, this is because, according to the chairman of CBDT, the department had noticed several examples where taxpayers claimed wrongful or excess deductions, discrepancies were noticed in TDS/TCS credits shown in Form 26AS/AIS versus the return, wrong exemptions or allowances were claimed by salaried employees, returns were flagged defective due to incorrect reporting of income, and dubious deductions were claimed in earlier years. Because of said reasons, the income tax department has tightened its scrutiny on refund releases.
Interest Is Still Being Given on Delayed Refunds.
If you also filed your income tax return (ITR) before the statutory deadline for the financial year 2024-25, i.e., September 16, 2025, then you are also entitled to interest of 0.5% per month (6% per annum) from April 1, 2025, till the date of refund, under Section 244A. The same interest also applies if the processing of the return is delayed by the income tax department itself due to scrutiny, and this interest keeps on increasing over time automatically.
When Are Refunds for FY25 Likely to Be Released?
Generally, income tax refunds are released by the tax department within 4 to 5 weeks of filing the return; however, this financial year, delays are anticipated due to the ongoing special drive. Still, several legitimate refunds are now likely to be released by the end of December 2025.
Step-by-step Procedure to Check Refund Status
Here is the step-by-step procedure to check income tax refund status online at the e-filing portal:
- Step 1: Visit the income tax e-filing portal at https://eportal.incometax.gov.in/iec/foservices/#/login.
- Step 2: Log in to your account using PAN/Aadhaar/Other ID and then enter your password on screen.
- Step 3: Navigate to the e-File tab, then select ‘Income Tax Returns’, and click on ‘View Filed Returns’.
- Step 4: Choose the appropriate assessment year, i.e., AY 2025-26.
- Step 5: Select ‘View Details’ to see your return and refund status. The screen will display three options: ITR processing status, Refund status (Issued / Failed / Under processing) and Date of refund issue and amount (if already released).
Refund Still Not Received? Here’s What to Do Next.
If you are also among those taxpayers whose income tax refunds have not been released yet. Do not panic; just make sure you have completed the following tasks:
- Your PAN should be linked to your Aadhaar card.
- Your account should be pre-validated on the e-filing portal.
- There should be no discrepancies in TDS figures and Form 26AS/Annual Information Statement.
- Any notices issued under “Pending Actions”, “Response to Outstanding Demand” or e-Proceedings, make sure you are promptly answering them.
