Income tax · Individuals and salaried
How long does an income-tax refund take, and why is it delayed or adjusted?
Short answer
Most refunds are issued within a few weeks of the return being e-verified and processed. Delays usually come from a bank account that is not pre-validated or linked to your PAN, a mismatch between the return and Form 26AS or the AIS, or an inoperative PAN. The department can adjust a refund against an outstanding demand after giving you notice. Interest of 0.5% a month is paid on refunds under section 244A (now 437).
The normal timeline
- You file and e-verify the return. Processing starts only after verification.
- The return is processed under section 143(1) (now 270(1)), and an intimation is emailed.
- The refund is sent to your pre-validated bank account. Simple returns are often refunded within two to five weeks; returns with business income, carried-forward losses or large claims take longer. The department has until nine months from the end of the financial year in which the return was filed to process it.
Why refunds get stuck
| Reason | What to do |
|---|---|
| Bank account not pre-validated, or name or IFSC mismatch | Pre-validate the account on the e-filing portal, then use "Refund reissue" |
| PAN inoperative (not linked to Aadhaar) | Link PAN and Aadhaar; refunds are not paid while the PAN is inoperative |
| Return not e-verified | Verify it; see e-verification |
| Mismatch with Form 26AS or the AIS, or a TDS credit missing | Respond to the communication; get the deductor to correct its TDS return |
| Return picked for scrutiny or kept on hold for verification | Respond to the notice; the refund follows the assessment |
Adjustment against old demands
If the department shows an outstanding demand for another year, it may set the refund off against it under section 245 (now 438). It must first send you an intimation and give you a chance to respond, usually within 30 days. If the demand is wrong or stayed, say so on the portal under "Response to outstanding demand". See outstanding demand: agree or disagree.
Interest on refunds
Interest at 0.5% a month (6% a year) is added under section 244A (now 437), normally from 1 April of the assessment year (or the date of filing, if late) to the date the refund is granted. It is taxable in the year received. No interest is paid if the refund is less than 10% of the tax determined, or for any delay you caused.
Legal basis
- Section 143(1), Income-tax Act, 1961, now section 270(1), Income-tax Act, 2025 (processing of returns)
- Section 244A, Income-tax Act, 1961, now section 437 (interest on refunds)
- Section 245, Income-tax Act, 1961, now section 438 (set-off of refund against demand)
Official sources
Related questions
- What does an intimation under section 143(1) (now section 270(1)) mean, and what should I do?It is the result of the automated processing of your return by CPC Bengaluru. It shows whether your figures were accepted as filed, or whether a...
- How do I e-verify my income-tax return, and what if I miss the 30 days?A return is complete only when verified, within 30 days of uploading it. E-verify with an Aadhaar OTP, net banking, a pre-validated bank or demat...
- There is an outstanding demand on the income-tax portal. How do I agree or disagree with it?Log in to the e-filing portal and open Pending Actions > Response to Outstanding Demand. For each demand, choose whether it is correct, partly correct...