Income Tax Refund Problem-Solving Guide (2025)

Every year, millions of taxpayers in India file their Income Tax Returns (ITR) expecting a refund. But often, challenges arise: refunds get delayed, bank account validation fails, or sometimes fraudsters send fake refund messages. This blog provides a complete problem-solving guide for income tax refunds — from checking status to resolving delays, claiming interest, and staying safe from scams.

Problem 1: Refund Status Pending or Not Received

One of the most common problems taxpayers face is that their refund status shows pending or not received. Here’s how to solve it:

Step-by-Step: Check Refund Status

• Visit Income Tax e-Filing Portal.
• Login with your PAN and password.
• Go to ‘View Returns / Forms’ and check your refund status.
• You can also check via NSDL Refund Status.

Common Status Messages

• Processed with Refund Issued – Refund is credited or on its way.
• Processed with Refund Failure – Bank details may be incorrect.
• Processed, No Refund – Your tax liability matched your paid taxes.

Problem 2: Refund Failure Due to Bank Account Issues

If your refund failed, most likely your bank account is not pre-validated. Without a validated account, refunds cannot be credited.

Solution: Bank Account Validation

• Login to Income Tax e-Filing portal.
• Go to ‘Profile’ → ‘My Bank Account’.
• Add your bank account and complete e-verification using net banking or OTP.
• Ensure account is linked with your PAN and Aadhaar.

Problem 3: Refund Delay Beyond Normal Processing Time

Earlier, refunds took up to 90 days. Now, with faceless assessment and improved IT systems, refunds are processed within 17 days on average. But delays can still happen.

What to Do If Refund is Delayed?

• Check if your ITR is Verified. Refunds are processed only after verification.
• Ensure no outstanding demand from previous years.
• If delay persists, raise a grievance on the Income Tax Portal.
• You can also contact CPC Bangalore helpline: 1800-103-4455.

Problem 4: Claiming Interest on Refund (Section 244A)

If your refund is delayed beyond a reasonable period, you are entitled to interest under Section 244A.

How Interest is Calculated?

Interest is paid at 0.5% per month (6% annually) on the refund amount, from April 1 of the assessment year until the refund date.

Example:

If your refund is ₹10,000 and it is delayed by 6 months, you are eligible for ₹300 as interest.

Problem 5: Income Tax Refund Frauds

Fraudsters often send fake SMS or WhatsApp messages like “Your refund of ₹15,490 is ready, click this link”. These are scams designed to steal your bank details.

How to Stay Safe?

• Never click on suspicious refund links.
• The Income Tax Department never asks for sensitive information over SMS or WhatsApp.
• Report fraud on National Cyber Crime Portal or call 1930.

Problem 6: Old Refunds and Outstanding Demands

Sometimes refunds from older years remain pending due to mismatched information or outstanding demands.

Solution: Rectification Request

• Login to the portal and select ‘Services → Rectification’.
• Submit a rectification request under Section 154.
• If demand is incorrect, file a dispute with supporting documents.

Conclusion

Income tax refunds are smoother today than ever before, but problems can still occur. By checking refund status regularly, validating bank accounts, raising grievances on time, and staying alert against fraud, you can ensure a hassle-free refund process.

FAQs

1. How long does it take to get an income tax refund?

Usually within 17–30 days if your return is verified and processed.

2. Can I change my bank account after filing ITR?

Yes, you can add or update your bank account anytime before refund is processed.

3. Is refund interest taxable?

Yes, interest received on refund under Section 244A is taxable under ‘Income from Other Sources’.

4. What should I do if I receive a fake refund message?

Do not click on it. Report to cybercrime.gov.in immediately.