Are income tax refunds above Rs 20,000 delayed? Know steps to check

Income tax refunds of Rs 20,000 or more may take time for various reasons, usually due to an increased level of review by the Income Tax Department, mismatch of information, verification, and bank account validation issues.

The department is paying closer attention to returns this year to reduce errors and fraudulent claims which takes time to process returns.

Refunds may also take time to process if the taxpayer does not e-verify their return, or provides an incorrect bank account for deposit.

Once processed, refunds usually take 4–5 weeks to be deposited in the taxpayer's bank account. It may take longer depending on the nature of your return being reviewed or outstanding tax demand adjustments.

Many taxpayers are dealing with refund issues as the deadline for filing returns was September 16, 2025. Smaller refunds, usually Rs 20,000 or less will generally be processed quicker than oversight by the Income Tax Department.

WHY REFUNDS OVER RS 20,000 MAY TAKE TIME

Higher refund claims are subject for additional scrutiny to ensure accuracy and fraud prevention

Processing slow due to high volume of e-filing after the September 16 filing deadline

Refund claims for deductions/exemptions will incur additional verification review

The Income Tax Department is subjecting higher levels of compliance this current tax year (2022-2023).

REASONS FOR REFUND ISSUES

Errors on the taxpayers PAN, Aadhaar, or Bank account

The Bank account was not pre-validated on the e-filing portal

The taxpayer did not e-verify ITR within 30 days of filing

Mismatch between taxpayer information in Form 26AS, AIS (Annual Information Statement), or TDS

Taxpayer refund selected for manual scrutiny

Taxpayer pending tax demand from previous assessment year.

SIMPLE STEPS TO CHECK REFUND STATUS ONLINE
METHOD 1: INCOME TAX E-FILING PORTAL

Go to www.incometax.gov.in.

Select ‘e-File’ > ‘Income Tax Returns’ > ‘View Filed Returns’.

Select the latest return, and click ‘View Details’ for refund status.

METHOD 2: NSDL REFUND STATUS PORTAL
Visit NSDL Refund Status

Enter your PAN and Assessment Year

Your latest refund status will be displayed; details will include rejection or reissue requests.

WHAT TO DO IF REFUND HAS NOT BEEN PROCESSED

Make sure your bank account is updated and pre-validated in the e-filing portal. Make sure your return has been e-verified and complete the e-verification process if it has not been verified.

Respond promptly to Notices for mismatching discrepancies or additional verification requests.

If you see "Processed with refund due" on the refund status you will need to raise a grievance or request refund reissue in the e-filing portal for refund payments that have not yet been processed following verification of ITR.

Refunds are typically issued within 4-5 weeks from ITR e-verification; our experience shows that larger refund amounts may take a little longer.

In the case of refund delays; as per interest on income tax returns, taxpayers are entitled to 6% interest on the refund amounts due.

Taxpayers also need to make sure their filing was accurate, correct bank account balance is provided correctly for refunds and that e-verification is completed in a timely manner to avoid delays.