If you’ve been opening the Income Tax portal every morning hoping to finally see your refund credited, you are not alone. This year, lakhs of taxpayers across India are asking the same question:
“Why is my ITR refund still under processing?”
The slowdown in ITR refund processing for AY 2025–26 has become a hot topic on social media, with posts, threads, and complaints pouring in every day. Many people who filed and e-verified their returns weeks ago are still stuck with the frustrating status: “Return is under processing.”
But here’s the good news:
The delay is real, but it’s not a freeze. Refunds are being processed — just more slowly.
In this in-depth guide, we decode why this is happening, what the Income Tax Department has said, and what YOU can do to speed things up.
Why Income Tax Refunds Are Slower in 2025
The Bigger Picture Everyone’s Talking About
Compared to previous years, refund speed has dropped noticeably. For many taxpayers, what usually takes 4–5 weeks is now stretching to 6–10 weeks or more.
Tax practitioners and chartered accountants confirm that the slowdown is coming from a mix of:
- Stricter data checks
- Massive last-minute filing surges
- AIS–26AS mismatches
- Technical scrutiny of large refund claims
- Bank verification errors
In simple words:
This year, the tax department has tightened the taps, not blocked them.
Let’s break down each reason in plain English.
1. Stricter Verification Checks at CPC Bengaluru
Why It’s Happening
The Centralised Processing Centre (CPC) is the “brain” of refund processing. This year, CPC has rolled out tougher screening filters to reduce fake or erroneous refund claims — especially after several cases of inflated deductions were flagged last year.
This means:
- High-value refunds
- Returns with unusual entries
- Cases showing multiple income sources
- Claims that don’t align with AIS or 26AS
…are being routed for manual or semi-manual checks, which naturally slows the queue.
Real-Life Example
A Bengaluru-based freelancer with income from consulting, stock trading, and foreign clients reported a 90-day delay because her TCS and foreign remittance disclosures didn’t match the AIS perfectly — even though the final tax paid was correct.
H3: Quick Summary
The CPC is playing it safe, not slow. High-risk or mismatched data leads to manual review, which extends refund timelines.
2. AIS, 26AS, and ITR Mismatches: The #1 Cause of Delays
If your AIS (Annual Information Statement), Form 26AS, and ITR don’t “talk to each other,” the system automatically flags your return.
Common mismatch areas include:
- Stock market gains vs. AIS entries
- Multiple FD interest entries
- Foreign income not fully disclosed
- Differences in salary income vs. Form 16
- TDS credits not claimed correctly
Even tiny mismatches — like rounding differences — can push your ITR into the slower lane.
Why It Affects More People This Year
With more Indians earning from:
- Stock trading
- Freelancing
- Crypto (still in grey zones)
- Global apps like Upwork, Amazon affiliates, YouTube
- Multiple FDs due to rising interest rates
…AIS entries have become more scattered and prone to mismatch.
H3: Quick Summary
If AIS ≠ ITR, expect delays. Even genuine taxpayers get caught in data discrepancies.
3. Late Release of ITR Forms Created a Processing Backlog
Most ITR forms were released later this year, compressing the filing season. This caused:
- Surge in filings near the deadline
- Overloaded CPC servers
- Pile-up of returns requiring verification
More work + shorter time = slower refunds.
This is similar to traffic piling up on Bengaluru’s Outer Ring Road — even if the traffic lights function perfectly, too many cars equal slow movement.
H3: Quick Summary
Heavy traffic at CPC means longer waits.
4. Incorrect or Unverified Bank Account Details
You might be surprised, but one of the most common reasons refunds bounce back is bank account mismatch.
Problems arise when:
- Bank account isn’t pre-validated
- IFSC code changed after bank merger
- Name differs slightly from PAN
- Account is inactive or frozen
- Wrong account number entered
Many taxpayers only realise this after reading X/Twitter complaints like:
“Refund processed, but amount not credited. What’s happening?”
How to Fix It
- Go to e-File → Pre-validate Bank Account
- Ensure your PAN-linked bank account is primary
- Check for spelling/initial mismatches
H3: Quick Summary
Refunds can’t be credited unless your bank account is 100% correct and active.
5. Aadhaar–PAN Linking or Name Mismatch
If PAN and Aadhaar aren’t properly linked — or if the name differs (common with initials in South India) — the refund gets stuck.
Examples:
- R. Karthik on Aadhaar
- Ramaswamy Karthik on PAN
- System flags duplication
H3: Quick Summary
Link Aadhaar–PAN correctly. Small name differences can cause big refund delays.
6. Incorrect Claims, Inflated Deductions, or Missing Proof
The IT Department has openly stated that several refund claims needed detailed checking.
CBDT Chairman Ravi Agrawal confirmed:
“Some wrong refunds or deductions were being claimed. We hope to release remaining refunds by this month or December.”
This includes:
- Inflated 80C or 80D claims
- Wrong HRA calculations
- Deductions without proof
- High TDS refund claims not matching income declared
CPC now uses automated risk algorithms to isolate such cases.
H3: Quick Summary
If your refund amount is unusually high, expect scrutiny.
7. The Human Element: Seasonal Workload + Tech Checks
Every year, CPC handles crores of ITRs. But this year:
- More taxpayers filed
- More people had multiple income sources
- TDS entries have increased
- Compliance checks are tighter
It’s like checking 5 bags for security instead of 1 — the line will inevitably move slower.
H3: Quick Summary
More data = more checks = more time.
How to Check Your ITR Refund Status (2025 Guide)
Follow these steps to know exactly where your refund stands:
- Visit eportal.incometax.gov.in
- Log in with your PAN and password
- Go to e-File → Income Tax Returns → View Filed Returns
- Select your ITR and see refund status
You may see one of these statuses:
- Under processing → Verification ongoing
- Processed with refund → Awaiting bank credit
- Refund failure → Check your bank details
- Sent for additional verification → Needs correction
What You Can Do If Your Refund Is Delayed
Practical steps to speed things up:
✔️ 1. Compare AIS, 26AS, and ITR
Fix mismatches → file revised return if needed.
✔️ 2. Check bank pre-validation
Make sure your refund account is active and linked to PAN.
✔️ 3. Respond to any CPC notices promptly
Delays increase if you ignore emails/SMS.
✔️ 4. File a grievance on the portal
Go to: e-Nivaran → Submit Grievance
✔️ 5. Escalate if stuck for more than 2 months
Many taxpayers received quick responses after escalation.
✔️ 6. Don’t panic
Refunds are being released — especially low-value ones.
When Can You Expect the Refund?
According to CBDT:
Most remaining refunds will be released by November–December 2025.
Low-value refunds are already being credited. High-value or complex profiles may take longer.
H2: Common Mistakes Taxpayers Make (And How to Avoid Them)
🔶 Mistake #1: Not matching AIS with ITR
AIS is now the backbone of tax matching.
🔶 Mistake #2: Using outdated bank details
Many banks updated IFSC codes after mergers.
🔶 Mistake #3: Claiming deductions without proof
If CPC asks for evidence, be ready.
🔶 Mistake #4: Filing ITR in a hurry
Rushing = errors → delays.
🔶 Mistake #5: Ignoring CPC communication
Even simple clarifications can stall refund processing.
H3: Section Summary
The fastest way to get your refund is simple: match your data, validate your bank, and stay alert to notices.
Conclusion
Refund delays are frustrating — especially when you’ve planned your finances around them. But this year’s slowdown is driven by tighter verification, not payment freezes.
As systems stabilize and the filing surge settles, refund processing for AY 2025–26 is expected to return to normal speed.
Until then, the best approach is:
- Keep your details accurate
- Stay responsive
- Be patient — your refund is on its way