ITR Refunds Are Delayed: CBDT’s High-Value Checks, New Refund Timeline 2025, and How to Check Your Refund Status

ITR Refunds Are Delayed: For lakhs of taxpayers across India, Income Tax Refunds for FY 2024–25 (Assessment Year 2025–26) have been stuck for weeks despite timely filing. With rising frustration over delays, the Central Board of Direct Taxes (CBDT) has finally clarified the real reasons behind the slowdown, confirmed the expected timeline for pending refunds, and explained which returns are facing deeper scrutiny. 

Additionally, taxpayers have been advised to check their refund status online using their PAN card to avoid confusion and track the latest updates. The department’s scrutiny process, refund figures, and processing data offer a clearer picture of what is happening inside the system and when taxpayers can realistically expect their refunds.

Key Takeaways on ITR Refund Delay, CBDT Scrutiny & Refund Status Check

• CBDT is conducting deeper verification of high-value, red-flagged, and deduction-heavy returns, slowing refunds this year.
  
• Refund issuance between April 1 and November 10 fell 18% to ₹2.42 lakh crore, even as more returns required additional checks.
  
• More than 8.19 crore ITRs have been filed, 7.88 crore verified, but 92 lakh returns remain unprocessed.
  
• Simple, low-value returns continue to be processed quickly through automated validation.
  
• Most pending refunds will be released by November end or by December, depending on verification completion.
  
• Refund delays are also caused by bank account not pre-validated, incorrect IFSC code, PAN–Aadhaar mismatch, or defective return.
  
• Taxpayers can check refund status using PAN on the Income Tax e-filing portal or NSDL-TIN portal.
  
• Appeals disposal up by over 40%, helping reduce old pendency from earlier years.
  

CBDT Explains Why ITR Refunds Are Slower This Year

CBDT Chairman Ravi Agrawal said the Income Tax Department is conducting more intense verification of refund claims flagged for potential wrongful deductions.

According to him, several returns were automatically marked as “high-value” or “red-flagged” due to unusual deduction patterns. These cases are being held back until verification is done.

Agrawal clarified that “low-value refunds are being released”, but multiple cases were found with incorrect or excessive deductions, requiring additional scrutiny. In such cases, the department has also written to taxpayers asking them to file revised returns if they missed essential details.

Refund Data Shows a Significant Slowdown

CBDT’s latest data highlights the scale of slowing refund payments:

These numbers make it clear that although tax collections are rising, refund outflows have slowed due to deeper verification.

Do Salaried Taxpayers Get Faster Refunds Than Business Professionals?

There is no category-based priority, but filing structure plays a major role.

Salaried taxpayers get faster refunds because:

• They typically have single-source income.
  
• Data is pre-validated through Form 16.
  
• Fewer mismatches occur, reducing scrutiny.
  

Business professionals often face delays because:

• They have multiple income sources.
  
• They claim depreciation, business expenses, capital gains, etc.
  
• Their filings are more complex and more likely to trigger red flags.
  

According to expert insights included in the data, refund speed depends on accuracy and completeness, not on whether the taxpayer is salaried or self-employed.

Also Read: Income Tax Refunds to Get Faster as CBDT Empowers CPC for Direct ITR Rectifications

Technical Reasons Why Refunds Fail or Get Delayed

Apart from verification checks, several technical issues slow down refund credit:

• Bank account not pre-validated
  
• Wrong/old IFSC code
  
• Bank account closed or inactive
  
• Name mismatch between bank account & PAN/Aadhaar
  
• PAN not linked with Aadhaar
  
• ITR marked defective due to missing/inaccurate details
  
• ITR routed to Assessing Officer for deeper review
  
• Mismatches in income, TDS, or claim data
  

If the refund attempt fails due to bank-related issues, taxpayers must submit a Refund Re-issue Request on the portal after updating details.

How to Check Your ITR Refund Status Online Using PAN

Taxpayers can track their ITR refund through two official methods.

A. Check Refund Status on Income Tax e-Filing Portal (FO Portal)

1. Visit https://www.incometax.gov.in/iec/foportal/
   
2. Log in using PAN, password, and OTP.
   
3. Go to e-File → Income Tax Returns → View Filed Returns.
   
4. Select AY 2025–26.
   
5. Click View Details to see refund amount, status, payment mode and date of credit.
   

B. Check Refund Status on NSDL-TIN Refund Portal

1. Visit https://tin.tin.nsdl.com/oltas/refund-status-pan.html
   
2. Enter PAN and the Assessment Year.
   
3. Click Proceed.
   
4. Portal displays whether refund is sent, pending, failed or requires reissue.
   

When Will Pending Refunds Be Released? CBDT’s New Timeline

According to CBDT Chairman Ravi Agrawal:

• Most refunds will be released by November end
  
• Remaining refunds will be credited by December
  

Simple ITRs with no mismatches are already being processed quickly, while high-value and flagged returns will take a few extra weeks.

What to Do If Your Refund Is Still Not Credited

Taxpayers should:

• Confirm bank account + IFSC accuracy
  
• Ensure bank account is pre-validated
  
• Check for any notices or alerts on the portal
  
• Respond immediately to department queries
  
• File revised return only if an actual mistake exists
  

A Clear Outlook as Refund Processing Accelerates

The ITR refund slowdown of 2025 is driven by high-value checks, deeper scrutiny and stricter automated risk filters. While straightforward returns continue to be processed quickly, complex and deduction-heavy filings require more time. With CBDT confirming that most pending refunds will be released by November end or December, taxpayers can expect faster movement soon. 

Keeping bank details accurate, ensuring PAN–Aadhaar linkage and tracking refund status online remain the most effective steps toward receiving refunds without further delay.

FAQs on ITR Refund Delay 2025