Income tax refund delayed? How to check status, why it is stuck and the interest you get

Filed your return for FY 2025-26 months ago and the refund has still not arrived? Here is how to check where it is, the usual reasons refunds get held up, what to do in each case and how interest under Section 244A is worked out.

By CA Dilbagh Singh, Chartered Accountant, Rohini, Delhi · Published 8 November 2026

A refund arises when the tax paid through TDS, TCS, advance tax or self-assessment is more than the tax payable on your income. For FY 2025-26 (AY 2026-27), most returns are processed and refunds issued within weeks, but a large number are still pending in November. In most cases the hold-up is caused by something you can check and fix yourself.

Returns for FY 2025-26 are filed and processed under the Income-tax Act, 1961, so the section references below are to that Act.

Step 1: check the status

Log in to incometax.gov.in with your PAN.
Go to e-File > Income Tax Returns > View Filed Returns and open AY 2026-27.
Read the timeline: submitted, verified, processed, and then refund issued or refund failed.
Check your email and the portal's Pending Actions for an intimation under Section 143(1) or a notice. Many refunds are reduced or held because of an adjustment explained in the intimation.
Once paid, the refund also appears in Form 26AS.

Common reasons and what to do

Return not e-verifiedA return is complete only after verification. Verify within 30 days of filing; if you verify later, the date of verification is treated as the date of filing, which can make the return belated.Verify first

Bank account not pre-validatedRefunds are credited only to a bank account that is pre-validated on the portal and linked to your PAN. Check under My Profile > My Bank Account.Fix and reissue

PAN inoperativeIf PAN is not linked with Aadhaar, the PAN becomes inoperative and refunds are not issued. Link it and wait for the PAN to become operative again.PAN–Aadhaar

Mismatch with AIS / 26ASIf income or TDS in the return differs from AIS or Form 26AS, the return may be processed with an adjustment or sent for review. Compare line by line and file a revised return if you made an error.Sec 143(1)

Adjusted against old demandThe department can set off a refund against an outstanding demand of an earlier year after giving prior intimation. Respond under Pending Actions > Response to Outstanding Demand – agree, or disagree with reasons.Sec 245

Still under processingSome returns are picked for further checks, particularly high refund claims and claims not supported by Form 16 or AIS. Keep supporting documents ready and reply promptly to any communication.Wait / follow up

If the refund has failed

When the status shows refund failed, the department tried to pay but the credit bounced – usually because of a closed account, a name mismatch or an incorrect IFSC. Update and pre-validate the correct account, then use Services > Refund Reissue on the portal to ask for the refund to be paid again. If there is no progress for a long time, raise a grievance through the Grievances menu on the portal with your acknowledgement number.

Interest on refund under Section 244A

Rate: 0.5% for every month or part of a month.
Return filed by the due date: interest runs from 1 April of the assessment year (1 April 2026 for AY 2026-27) to the date the refund is granted.
Return filed after the due date: interest runs only from the date of filing the return.
Small refunds: no interest if the refund is less than 10% of the tax determined on processing or assessment.
Delay caused by you: any period of delay attributable to the taxpayer is excluded.
Taxable: the interest is taxable as income from other sources in the year you receive it. Include it in your next return.

Worked example

Ms. Mehta, a salaried taxpayer, files her return for AY 2026-27 on 25 July 2026, within the due date, and e-verifies it the same day. Tax determined on processing is ₹1,10,000; TDS by her employer and bank is ₹1,50,000. The refund of ₹40,000 is granted on 10 November 2026.

Is the refund at least 10% of tax determined? 10% of ₹1,10,000 = ₹11,000. ₹40,000 is more, so interest is payable.
Period: April to November 2026 = 8 months (November counts as a full month).
Interest: ₹40,000 × 0.5% × 8 = ₹1,600. Check: 0.5% × 8 = 4%, and 4% of ₹40,000 = ₹1,600.
She receives ₹41,600 and shows ₹1,600 as interest income in her return for the year of receipt.
If she had filed late, on 20 September 2026, interest would run only from September: 3 months × 0.5% × ₹40,000 = ₹600.

Avoid delays next year

Download AIS and Form 26AS before filing and reconcile salary, interest, dividends and TDS.
Keep one pre-validated, active bank account nominated for refund.
E-verify immediately with Aadhaar OTP or net banking.
Pay or respond to old demands so that refunds are not adjusted.
Plan tax payments during the year so that large refunds do not build up – see our advance tax guide.

If you still need to correct the return for FY 2025-26, read our guide on belated and revised returns by 31 December 2026. If you received a notice instead of a refund, see common income-tax notices and what to do.

How we help

CA Dilbagh Singh helps individuals, NRIs and businesses in Delhi track pending refunds, reply to Section 143(1) intimations and demand adjustments, and file accurate returns. See our income tax return filing services.

General information as on 8 November 2026, based on Sections 143, 244A and 245 of the Income-tax Act, 1961 and the e-filing portal. Facts of each case differ; check your own records and take professional advice before you act.

Official references

Official sources to verify the current text, notifications and circulars:

Frequently asked questions

How do I check my income tax refund status?

Log in to the e-filing portal (incometax.gov.in) and go to e-File > Income Tax Returns > View Filed Returns, then select AY 2026-27. The status shows whether the return is verified, processed, and whether the refund has been issued or has failed.

Why has my income tax refund not been credited yet?

The common reasons are: the return was not e-verified, the bank account is not pre-validated or not linked to the PAN, the PAN is inoperative, the income in the return does not match AIS/Form 26AS, the refund was adjusted against an old demand, or the return is still under processing.

What should I do if my refund has failed?

Correct or pre-validate the bank account under My Profile, then raise a Refund Reissue request from the Services menu on the e-filing portal.

Will I get interest on a delayed income tax refund?

Yes, under Section 244A at 0.5% for every month or part of a month. For a return filed by the due date, interest runs from 1 April of the assessment year to the date the refund is granted. No interest is paid if the refund is less than 10% of the tax determined.

Is interest on income tax refund taxable?

Yes. Interest received on a refund is taxable as income from other sources in the year it is received, even though the refund itself is not income.

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