Income Tax Refund 2025: People are worried about the delay in income tax refunds. If you filed your return on time, you will receive your refund soon. The Income Tax Department pays interest on late refunds, but you won’t receive the full interest if you file your ITR late…
Income Tax Refund Delay: Many people are worried about their income tax refunds because their money hasn’t yet reached their bank accounts. If you’re one of them, there’s good news. If you’ve filed your return without any mistakes, you’ll receive your money soon. Some people are wondering if the Income Tax Department will charge interest on late refunds due to the delay in their refunds. Let’s find out the Income Tax Department’s rules.
If you filed your ITR before September 16th and your refund hasn’t yet been credited to your bank account, there’s no need to despair. The Income Tax Department charges interest on late refunds. According to Income Tax Department rules, taxpayers receive interest from April 1st until the money reaches their bank account.
However, if you filed your ITR late, you won’t receive interest starting April 1st. You’ll receive interest from the date you filed your ITR. Consequently, late ITR filers may lose interest. In such a situation, if your ITR hasn’t been received yet, the Income Tax Department will pay you interest on the late refund. However, if you made a mistake while filing your ITR, your refund could be delayed.
Let’s find out why refunds are delayed.
- If the bank details in the ITR are incorrect or the IFSC code is mismatched, the refund is not credited to the bank account.
- If there is a discrepancy between the information provided in the ITR and Form 26AS (TDS/Tax Credit Statement), the refund process gets stalled.
- For those who have filed a revised ITR, the refund process may take longer than usual.
- The Income Tax Department selects some ITRs for scrutiny. In such cases, the refund process gets prolonged.
- Refunds for those who file ITRs close to the due date are often processed late.
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