Income Tax refunds in 2025 are facing delays, leaving many taxpayers waiting months after filing their returns. The Income Tax Department is currently reviewing claims, which is causing the delays. Here are five major reasons why your tax refund may be held up this year.
1. Heightened Verification Checks
The Income Tax Department has implemented stricter verification protocols in 2025 to prevent fraudulent claims, especially concerning exemptions and mismatched income reports. Returns that involve foreign income, capital gains, or multiple income sources are now subject to thorough scrutiny. Refunds exceeding ₹1,00,000 often undergo additional checks, which extends the processing time.
2. Data Mismatches and Errors
Discrepancies between the income declared in your return and information on Form 26AS or the Annual Information Statement (AIS) can stall the refund process. Mismatches in tax credits claimed by employers or banks can also cause delays until these issues are resolved. Numerical inaccuracies or other mistakes in your filed ITR will also slow down the refund procedure. To avoid delays, ensure that all data matches across your ITR, Form 26AS, and AIS. If you notice any discrepancies, file a revised return.
3. Technical Bottlenecks
Late releases of ITR utilities and upgrades to the e-filing portal have compressed filing windows and delayed overall processing. These technical issues can slow down the processing of returns, leading to refund delays.
4. Incorrect or Inactive Bank Details
Providing incorrect or inactive bank account details is a common reason for refund delays. The Income Tax Department deposits refunds directly into your bank account, so it is crucial to ensure that the account details provided are accurate and active. Refunds can be put on hold if the taxpayer's bank account is not pre-validated, as pre-validation is now compulsory. Delays may also occur if the name linked to the bank account does not match the name on your PAN, if an invalid IFSC code is entered, or if the bank account mentioned in the filed ITR has been closed.
5. Filing Returns Close to the Due Date
Filing your income tax return close to the due date can also cause delays. Due to the high volume of returns filed near the deadline, the processing and issuance of refunds may take longer. Filing your return well in advance of the due date is always recommended.
CBDT Chairman Ravi Agrawal addressed concerns about the delays, stating that the Income Tax Department is analyzing potentially wrongful deduction claims. The department is focusing on "high-value" or "red-flagged" claims. According to official data from last week, ITR Refunds have dropped 18% to over ₹2.42 lakh crore between April 1 and November 10. Taxpayers can expect refunds to be credited by next month.
To check your ITR refund status, you can visit the income tax portal or NSDL portal. For any queries, you can contact the 'Aaykar Sampark Kendra' at 1800-180-1961 or email refunds@incometax.gov.in. For issues related to refund processing at CPC Bangalore, call 1800-425-2229 or 080-43456700.
