Winning Bizness Desk
Mumbai.The last date for filing income tax returns (ITR) for the financial year ended on September 15, 2025. Till the midnight deadline, more than 6 crore people across the country had submitted their returns. Those who failed to file before the cut-off now face a penalty of up to Rs 5,000.
Verification starts the refund process
Once an ITR is filed, it needs to be verified before the tax department begins processing. The process comes under Section 143(1) of the Income Tax Act. While most cases are handled automatically, some returns are checked manually if there are complications. So far, more than 4 crore returns have already been processed successfully.
The credit of refunds largely depends on the simplicity of the return filed. In straightforward cases, refunds can arrive within a week. In fact, refunds of smaller amounts below Rs 15,000 are often credited within hours of verification. However, due to the high number of applications or certain checks, it can take a month or even longer in some cases.
Problems that slow down refunds
There are several common reasons why refunds get delayed. Complications in returns, such as capital gains from shares or business income, usually require additional verification. Wrong bank account details or an incorrect IFSC code also stop the refund process. Another issue is the delay in e-verification of returns by taxpayers. Apart from this, the huge volume of returns during peak filing season stretches processing timelines.
Steps if refund is delayed
Taxpayers facing refund delays can log in to the income tax e-filing portal and check the refund status in the View Returns/Forms section. They should also verify whether the bank account number and IFSC code mentioned in the return are correct. For further help, they can call the helpline numbers 1800-103-0025 or 1800-419-0025.
Interest on delayed refunds
The tax department also pays interest at the rate of 6 percent per annum on delayed refunds. This ensures that taxpayers are compensated for late payments. However, experts point out that simple returns usually see faster refunds, while those involving business income or capital gains naturally take more time due to detailed checks.
Tax professionals suggest that taxpayers should remain patient after filing returns. With crores of applications being processed simultaneously, the system works in stages. Simple refunds flow quickly, while complicated returns move slower. The assurance of interest payment also offers relief to those facing long waits.
Key pointers at a glance
1. Over 6 crore income tax returns filed by September 15 deadline
2. Failure to file on time attracts penalty up to Rs 5,000
3. Refund processing begins only after return verification
4. Simple refunds may arrive within hours or a week
5. Complicated returns and wrong details cause delays
6. Refund status can be checked on e-filing portal or helplines
7. Tax department pays 6 percent annual interest on delayed refunds
