ITR Refund Not Received: Reasons and How to Fix It

How to check your ITR refund status first

Before guessing the reason, find out where your refund actually stands. The status usually tells you the problem directly.

Log in to the income tax e-filing portal with your PAN, open your filed returns and look at the status of the latest return. You can also use the refund status tracking facility on the tax information network website by entering your PAN and the assessment year.

• Return submitted but not verified: the department has not started work on it.
• Return verified, under processing: it is in the queue and no action is needed from you.
• Processed with refund determined: the refund is approved and is being sent to your bank.
• Processed with demand: the department thinks you owe tax, so no refund will come.
• Refund failed: the refund was issued but the bank could not credit it.

ITR refund not received reasons: the common causes

Across the returns we see, a few causes repeat again and again. Knowing which one applies to you saves a lot of time.

Remember that a refund shown in your own computation is only a claim. It becomes final only after the department processes the return and issues its intimation under section 143(1).

• Bank account not pre-validated or not linked to your PAN on the portal.
• Return not e-verified after filing, so it is treated as not filed.
• Return still pending processing.
• Refund adjusted against an old outstanding tax demand.
• Mismatch between TDS in your return and what appears in Form 26AS or AIS.
• Defective return notice under section 139(9) that was not answered.
• Wrong bank details such as a wrong account number, IFSC code or a closed account.
• Name or PAN related problems, such as the name in the bank not matching the PAN record.

Bank account not pre-validated or details wrong

The department sends refunds only to a bank account that is added on the portal, linked to your PAN and pre-validated. If you have changed banks, closed an old account or never validated the account you gave in the return, the refund can fail or stay stuck.

Check the bank account section of your profile on the portal. The account should show as validated and should be marked for refund. Also confirm that the account is active, that the name matches your PAN record, and that the IFSC code is current, since banks often merge and change codes.

Return not verified or still under processing

Filing a return is not enough. It must be verified, usually by Aadhaar OTP, net banking, a demat account, a bank account EVC, or by sending a signed ITR-V to the department. The law gives only a limited window from the date of filing to verify. A return that is not verified in time can be treated as invalid, so check this first and act immediately if it is pending.

If the return is verified and the status says under processing, the department may simply be taking its usual time. Refunds are not paid before processing is complete. If the wait looks unusually long, check for any pending notice or message on the portal. Where a refund is delayed beyond what the law allows, interest may be payable under section 244A, but the exact entitlement depends on your facts.

Refund adjusted against an old demand

The department can set off your refund against tax you are shown to owe for another year. This is provided under section 245 of the Income-tax Act, 1961. Before doing so, it must send you an intimation, so check your registered email and the pending actions on the portal.

Many taxpayers find that an old demand is wrong. It may be because a payment was not matched to the right challan, a rectification was never processed, or the demand came from a TDS mismatch that is already resolved. On the portal you can respond to an outstanding demand by agreeing, disagreeing or partly agreeing, and attach proof such as challans. If the demand is correct, paying it clears the way for future refunds.

Note: the Income-tax Act, 2025 has renumbered the provisions from tax year 2026-27. The section numbers above are from the 1961 Act, which still applies to earlier years.

How to fix a stuck ITR refund and when to get help

Once you know the cause, the fix is usually a few steps on the portal. Do these in order and keep screenshots of each step.

If the problem is a wrong demand, a TDS mismatch, a defective return or a refund that stays unpaid for a long time, professional help saves time. A wrongly worded response can make matters worse. CGA - Canjain Global Advisors handles refund follow-ups, rectification requests and replies to demand notices for individuals and businesses across India. The right step depends on your facts, and no refund can be promised, but a clear and well-documented response gives you the best chance.

• Verify the return at once if it is not verified.
• Add, validate and mark your correct bank account for refund.
• Respond to any outstanding demand with proof, or pay it if it is correct.
• Reply to any notice under section 139(9) and correct a defective return.
• File a rectification request if the intimation under section 143(1) has an error.
• Raise a refund reissue request on the portal if the refund failed.
• Raise a grievance or service request on the portal if nothing moves.

Frequently asked questions