Income Tax Refund: Every year, a lot of taxpayers deal with long waits for their refunds. This money is really important for many of them. So, what’s the hold-up with your refund not showing up in your bank account? How long should you actually wait for it? And what rights do you have as a taxpayer?
Rules for processing ITR
Sujit Bangar, the Founder of TaxBuddy, mentioned, “The Income Tax Department works under Section 143(1) of the Income Tax Act. This rule allows them nine months from the end of the financial year in which the return is filed to process it. A lot of taxpayers don’t know about this, so they start waiting for their refunds right after they file their returns.”
He explained that the return processing is done through a fully automated system, meaning no human involvement. Sometimes, refunds can be processed quicker. However, the department has the right to process returns within the set deadline. This means the Income Tax Department has until December 31, 2025, to process and issue refunds for returns filed in September 2025.
Refund expected next month
CBDT Chairman Ravi Agarwal recently pointed out that some ITRs look a bit off. The department is taking a close look at them to see if there were any mistakes in the filings. He also mentioned that 40 percent more appeals have been resolved this year. The remaining refunds are expected to be issued this month or by December.
Option to approach the court
Tax expert Balwant Jain from Mumbai said, “There’s a nine-month limit for processing ITRs. But there’s no specific time limit for issuing refunds. The law doesn’t state this, but court rulings say that refunds can’t be held up indefinitely without a good reason. If you haven’t received your refund, you can file a petition in the High Court, asking the court to direct the department to issue the refund.”