Income Tax Refund Delay: If you have filed your income tax return, don’t worry. Many taxpayers who filed their income tax returns for the financial year 2024 and assessment year 2025-2026 are quite concerned about delays in their tax refunds. But there is absolutely no need to worry.
People are also raising questions about the refund delays on social media and tax forums. But the reality is different. The Income Tax Department appears to be working within the stipulated timeline. Under the Income Tax Act, the department has the full right to process returns filed for FY 2024-25 until December 31, 2026.
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Understand the complete reasons for the refund delay.
According to ITR experts, returns that involve high refund claims, capital gains, or various deductions are subject to additional automated scrutiny. This process takes time. Furthermore, the Income Tax Department has the right under Section 245(2) to adjust refunds against outstanding tax dues. If there is any old tax demand against your name, the refund may be temporarily withheld.
The delay is not always due to system issues,s but also due to mistakes made by the taxpayers themselves. According to tax expert Abhishek Sone, many salaried individuals claim deductions like 80C, 80D, or HRA in their ITRs, which they had not previously informed their companies about. In such cases, the Income Tax Department seeks clarification, and the refund is withheld until a response is received.
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Impact of the NUDGE Campaign
It’s worth noting that the CBDT launched the NUDGE campaign in December 2025. Under this campaign, taxpayers whose returns show discrepancies or errors are alerted via SMS and email. This process requires taxpayers to either accept the changes or file a revised return. In such cases, the refund remains on hold until the taxpayer responds.
How to check refund status
Taxpayers must first visit the incometax.gov.in website.
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Then, they need to log in using their PAN and password.
Next, they should click on e-File – Income Tax Returns – View Filed Returns.
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The complete status of your return and refund will then be easily visible.