Income Tax Refund Return Problems: Causes, Solutions, and Tips

Rakhal das

Sep 22, 2025

Income Tax Refund Return Problems: Causes, Solutions, and Tips

Filing income tax returns (ITR) on time is an important responsibility for every taxpayer. While many individuals expect a refund after filing, delays or problems in receiving the refund are quite common. Understanding the reasons behind these issues and knowing how to resolve them can save both time and stress.

Common Problems in Income Tax Refund

1. Mismatch in Bank Account Details

One of the most frequent issues is incorrect bank details such as IFSC code, account number, or account type. Even a small error can stop the refund from being processed.

2. Mismatch in Income or TDS Data

If the income details in your return do not match with Form 26AS or AIS/TIS data, the system may hold the refund for verification.

3. Outstanding Tax Demand

If there is any previous outstanding tax demand, the Income Tax Department may adjust your refund against it, either partially or fully.

4. Delayed Processing of ITR

Refunds are issued only after your ITR is processed and verified. If verification (through Aadhaar OTP, net banking, or sending ITR-V) is delayed, the refund will also get delayed.

5. Incorrect PAN–Bank Linkage

Refunds are credited only to bank accounts that are pre-validated and linked with PAN. If this step is missed, the refund cannot be issued.

6. Technical Errors

Sometimes, backend technical glitches or system overload at the Income Tax portal can also delay refunds.

How to Track Your Refund Status

You can check your refund status in two ways:

1. Income Tax e-Filing Portal

   • Login to incometax.gov.in
   • Go to Services > Refunds
   • View the status of your refund request.

2. NSDL / TIN Website

   • Visit tin.tin.nsdl.com
   • Enter PAN, assessment year, and captcha to track refund status.

Solutions to Refund Problems

• Correct Bank Details: Revalidate your bank account under the "Profile" section of the e-filing portal.
• Re-verify ITR: If your return is not yet verified, complete verification immediately.
• Respond to Notices: If you receive a notice for mismatch or clarification, respond within the given timeline.
• Clear Outstanding Dues: Pay or appeal against any outstanding demand, if wrongly raised.
• Raise a Grievance: If the refund is delayed beyond a reasonable time, lodge a grievance under the e-Nivaran section of the Income Tax portal.

Tips to Avoid Refund Issues in Future

1. File returns early to avoid last-minute errors.
2. Always cross-check Form 26AS and AIS before filing ITR.
3. Pre-validate and link your bank account with PAN well in advance.
4. Double-check all personal details like PAN, Aadhaar, and bank details.
5. Keep track of notices and communication from the Income Tax Department.

Final Thoughts

Income tax refund return problems are common but avoidable with careful filing and timely verification. Most issues arise due to mismatched details, delayed verification, or pending demands. By ensuring accuracy and staying proactive, taxpayers can receive their refunds smoothly without unnecessary delays.