Is your ITR refund stuck? Check for these 7 mistakes

Indian Express

25-07-2025

Income tax refunds are usually straightforward and tend to get processed smoothly. If you've filed your taxes but your refund is stuck or delayed, some small mistakes during filing could be the culprits behind. Whether you're under the new tax regime or the old one, errors like incorrect bank details, not verifying your return, or claiming ineligible deductions can hinder the process, delaying your refund. But these aren't all. Here are some common mistakes you should avoid to get your refund without hiccups.
1. Incorrect or inactive bank account details
Tax refunds are only credited to pre-validated bank accounts. Errors like incorrect account details (such as the account number or IFSC), or if your account hasn't been linked to your PAN, can prevent the refund from going through. To prevent this, ensure you have pre-validated your bank account on the income tax portal. Also, make sure the bank account you provide is active and capable of receiving electronic credits. Dormant or certain NRE/NRO accounts may reject refund transfers
2. Filing under the wrong ITR Form
There are different types if forms designated for different types of incomes. For instance, ITR-1 is for salaried individuals with income up to ₹50 lakh while ITR-2/3 are for capital gains, foreign assets, or business income. If you have filed your returns using the incorrect form, it can result in defective return notices or rejection. Always check the form that applies to you and use that to file returns.
3. Mismatch in TDS/TCS and Form 26 AS/Form 16
To check if the taxes deducted match the reported tax returns, the I-T Department compares your returns with Form 26AS, AIS, and TIS. If there's a mismatch, such as an error in your employer's Form 16, or your TDS has been incorrectly reported by your bank, the mismatch will likely trigger an automated review, pausing your refund. So, always cross-check tax credits before submitting your return.
4. Not e-verifying your return
If you don't e-verify your tax return, it won't be processed. E-verification must be completed within 30 days of filing. You can do this using your Aadhaar OTP, net banking, a demat account, or even at an ATM (for certain banks). Without e-verification, your tax return will remain incomplete, and any refund due to you will be held up
5. Claiming excessive or wrong deductions
Claiming deductions beyond what you are eligible for can raise red flags in the system. For instance, claiming ₹1.5 lakh under Section 80C without actual proof could lead to the system flagging the return for review or manual review. Claim only what you can support with investment proofs, salary slips, or bank statements.
6. Not reporting all income
When filing returns, income from sources like freelance work, savings account or fixed deposit interest, or dividends, can be missed. But these are usually captured in your Form 26AS or AIS. But, if the returns don't match, it can hold up your refund. Reporting all income, no matter how small, is crucial to prevent delays.
7. Filing late
Delays in filing returns will automatically affect the timeline of your refund. If you've missed the filing deadline, not only can your returns take longer to process, you may also lose interest on any refund due, as per Section 244A. Filing early can avoid such technical issues and ensure your refund reaches you quicker.
8. Ignoring notices or alerts
If your filed tax return has issues, the Income Tax Department will likely send you a Defective Return Notice (under Section 139(9)). These are typically sent via email, SMS, or to your Income Tax portal inbox. Missing these alerts and failing to act on them can delay your refund. Therefore, always monitor your email, portal inbox, and messages for such notices.
Getting your tax refund on time simply requires getting the basics right. Be it your account details, e-verifying your account, or selecting the right form to file, a little diligence now can save you weeks of waiting later.