To address these concerns, the Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal recently explained the exact reasons behind the slowdown and shared the likely timeline for refund release. Here’s a complete report on what is causing the delay, when you can expect your refund, and how to check the latest status online.

Why Are ITR Refunds Delayed for FY 2024-25?

The Income Tax Department uses an automated risk-based assessment system to review ITRs. This year, the system has flagged a higher number of returns due to suspicious deduction claims, incorrect information, and high-value refunds. As a result, manual checks have increased, leading to delays in refund processing.

Below are the major reasons for the delay:

1. High-Value or Red-Flagged Claims Under Scrutiny

The CBDT Chief confirmed that several returns were flagged because they showed:

• Unusually high deductions
• Mismatched income details
• Inconsistent TDS claims
• High-value refunds that didn’t align with reported income

When the system identifies such cases, manual verification becomes mandatory, which naturally takes more time compared to automated processing.

2. Wrong or Excessive Deduction Claims Found

The IT Department has discovered multiple instances where taxpayers unintentionally—or in some cases deliberately—claimed:

• Higher deductions under Section 80C
• Incorrect HRA exemptions
• Wrong deduction under 80D, 80G, 80E
• Deductions not supported by documentation
• Excessive TDS refunds based on inaccurate entries

These discrepancies require the assessing officer to re-check the return, and this verification process significantly slows down refund approval.

3. Low-Value Refunds Already Cleared First

The department follows a process where easy, low-value refunds are cleared first since they require minimal scrutiny.

Low-value refunds usually belong to taxpayers with:

• Only salary income
• No major investments
• No business income
• Very few deductions

Since these returns are straightforward and clean, they have already been processed and credited quickly.

4. Reduced Overall Refund Volumes Due to Rationalized TDS

Interestingly, the department also reported that ITR refunds this year have fallen by 18%, reaching ₹2.42 lakh crore (till November 10). This is because TDS rates were rationalized in the previous years, resulting in:

• More accurate TDS deductions
• Less mismatch between tax paid and tax due
• Lesser need for refunds

So naturally, fewer refunds mean more time is being spent reviewing complex ones.

5. Department Advising Taxpayers to File Revised Returns

Many taxpayers received emails from the IT Department asking them to:

• Recheck their ITR
• Correct missing income
• Correct form inconsistencies (Form 16, Form 26AS, AIS mismatch)
• File a revised return if applicable

Revised returns also add to the processing time as the system must re-validate all entries.

When Will You Receive Your ITR Refund?

CBDT Chairman Ravi Agrawal has confirmed that taxpayers can expect the pending refunds to be completed by the end of November or latest by December 2025.

He also added that the department has been working aggressively to reduce backlog:

• Appeals disposal has increased by 40% compared to last year
• Old pending cases (mainly due to COVID-era load) are being cleared
• New automated systems have been deployed for faster processing

So if your refund is pending, you can expect it very soon, especially if your return is clean and error-free.

How to Check Your ITR Refund Status Online

You can check your ITR refund status in two simple ways:

Method 1: Through Income Tax e-Filing Portal

Follow these steps:

1. Go to: https://www.incometax.gov.in
2. Log in using your PAN, password, and OTP.
3. Navigate to:
   e-File → Income Tax Returns → View Filed Returns
4. Select Assessment Year 2025-26.
5. Click on View Details to check the refund processing stage.

It will show statuses like:

• Return Received
• Under Processing
• Refund Approved
• Refund Sent
• Refund Failed (Bank Issue)

Method 2: Check Refund Status via TIN-NSDL Portal

Visit: https://tin.tin.nsdl.com/oltas/refund-status-pan.html

Enter your PAN and AY to check if the refund has been issued by SBI (the refund banker).

Verify Your Bank Account to Avoid Refund Failure

Many refund failures happen due to bank-related issues. Ensure that your bank account is:

✔ Pre-validated
✔ Linked with correct PAN
✔ Active and not dormant
✔ IFSC code updated
✔ Name correctly matched with PAN

Even a small mismatch can delay your refund.

What to Do If Your Refund Is Still Pending?

Here are the steps you should follow:

1. Wait If Your Return Is Under Verification

If your ITR includes high-value deductions or business income, expect manual scrutiny. Waiting is a part of the process.

2. Check for Email/SMS Communication

Sometimes the department asks for:

• Additional documents
• Revised ITR
• Clarifications

Always check your registered email ID and SMS alerts.

3. File a Revised Return (If Needed)

If you missed reporting income or claimed a wrong deduction, quickly file a revised ITR under:

Section 139(5) – Revised Return

This will prevent delays.

4. Re-Validate Your Bank Account

Go to:

Profile → My Bank Account → Validate

Once validated, refunds are processed faster.

5. Raise a Grievance on e-Nivaran

If your refund is stuck for more than 60 days, raise a complaint through:

Dashboard → Grievances → Submit Grievance

You will receive updates within a few days.

Key Takeaways

• Delays are mainly due to scrutiny of high-value or suspicious refund claims.
• Low-value refunds are already being processed.
• Refunds are expected to be credited by November or December 2025.
• Taxpayers can check refund status through the Income Tax portal or NSDL.
• Ensure your bank details and PAN details are accurate to prevent failures.