A refund moves through four stages: return verified and processed, refund determined, refund issued, and credited to the bank account. Most delays come from a return that was never e-verified, a bank account that is not pre-validated against the PAN, or an old demand that the department adjusts against the refund under section 245. Check the stage first, then fix the cause for that stage.
Facts checked: 9 October 2026, against the Income Tax Department's published guidance and section 244A of the Income-tax Act, 1961. Portal menu names change from time to time, so follow the path your login shows rather than a screenshot from an older guide. Returns for AY 2026-27 are still processed under the 1961 Act.
How to check refund status
There are two official routes. Log in to the e-filing portal and use the refund status service for the relevant assessment year, or use the refund tracker on the NSDL (Protean) TIN website, which asks for PAN and assessment year. The refund also shows against your pre-validated bank account when it is credited.
What each stage means
| Stage | What it means | What to do if stuck |
|---|---|---|
| Return processed | Return is e-verified and the intimation under section 143(1) is issued | Check the return was e-verified; an unverified return is not processed |
| Refund determined | Department has computed a refund | Look for an outstanding demand or a mismatch notice |
| Refund issued | Refund sent to the bank | Confirm the bank account is pre-validated and linked to PAN |
| Credited, or failed | Money arrives, or the credit bounces | For a failure, correct the bank details, then raise a reissue request |
The usual reasons for delay
- Return not verified. A return that is not e-verified within the allowed time is treated as not filed, so there is nothing to refund.
- Bank account not pre-validated or not linked to PAN. The refund is credited only to a validated account. A name mismatch with PAN also fails the credit.
- Wrong or changed IFSC, or a closed or frozen account.
- Outstanding demand. Under section 245 the department may set off the refund against a demand for another year, after giving the taxpayer a notice. If you disagree with the demand, respond on the portal. See how to respond to a demand notice.
- TDS, Form 26AS or AIS mismatch. If the TDS claimed is higher than what deductors reported, the refund is cut or held. Use the TDS reconciliation working paper and the 26Q reconciliation checker to find the gap, and see the TDS return due dates if a deductor filed late.
- Defective return or selection for scrutiny. Refund is held until the defect is cured or the assessment is complete.
Interest on refund under section 244A
Section 244A provides simple interest for every month or part of a month. The rate is commonly stated as 0.5% a month, but it does not print legibly on the department's section page (the fraction is elided), so confirm it before quoting it to a client. For refunds of TDS, TCS or advance tax on a return filed by the due date, the period runs from 1 April of the assessment year to the date the refund is granted. No interest is payable where the refund is less than 10% of the tax determined on processing. Interest received is taxable income. Confirm the period for belated returns and self-assessment tax against the section.
Worked scenario. A client's AY 2026-27 return shows a refund of ₹48,000, all from TDS, and the refund is granted on 31 October 2026. Assume the 10% test is met. Months from April to October 2026 count as 7, so, taking the commonly stated 0.5% a month, interest is ₹48,000 x 0.5% x 7 = ₹1,680.
What a CA should check for a client
- E-verification status of the return and the date of verification.
- Bank account listed as pre-validated, with the right IFSC.
- Any open demand on the portal for any year, and any section 245 notice.
- TDS in Form 26AS and AIS against the amount claimed.
- Whether the intimation under section 143(1) shows a different refund from the one claimed.
If the refund has failed, correct the bank details first, then raise a refund reissue request on the portal. If it still does not move, file a grievance through the e-filing portal or the CPC helpdesk, quoting the acknowledgement number.
Frequently asked questions
How long does an income tax refund take?
There is no fixed statutory number of days. After a verified return is processed, the refund is normally sent to the pre-validated account, but any of the issues above can hold it.
Why does the status say refund failed?
Usually the bank account is not validated, is not linked to PAN, or the IFSC is wrong. Fix the account and raise a reissue request.
Can the department keep my refund against an old demand?
Yes, under section 245, after giving a notice. Reply to the notice if the demand is wrong or already paid.
Do I get interest if the refund is delayed?
Section 244A interest runs at 0.5% a month for the period the law specifies, subject to the 10% threshold. It is not a penalty for the delay itself.
Return dates are in the ITR filing due date guide. If you are paying tax instead, see how to pay advance tax online with Challan 280. The income tax calculator helps check expected refund before filing.
Statutory facts on this page are checked against their sources, and the page says where it relied on secondary reporting. How we verify · Report an error