/ Income Tax · Updated 2026-10-30

ITR Refund Delayed in 2026? Why It Happens and What You Can Do, and the interest you are owed.

Many taxpayers who filed on time are still waiting for refunds. The Department can process a return up to nine months after the end of the financial year in which it was filed, so a return filed in 2026 can lawfully be processed as late as December 2026. Refunds are often held up by mismatches the taxpayer can fix, and a delayed refund earns interest of 0.5% a month under Section 244A.

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Written by CA Durgesh Chavda

Chartered Accountant (ICAI) · Founder, Bharat Quantum Prospera · NRI taxation, US incorporation, transaction due diligence, forensic audit, AEO, cross-border tax · LinkedIn

/ Common reasons

Check these first.

The return was never e-verified, or was verified late.
The bank account is not pre-validated on the portal, or the PAN-bank name does not match.
TDS claimed in the return does not match Form 26AS or AIS.
A defective-return notice or a proposed adjustment is waiting for your response.
The refund was adjusted against an earlier outstanding demand.
The return is selected for further verification or scrutiny.

/ What you can do

In order.

Check the return status on the e-filing portal: filed, verified, processed, refund issued.
Re-validate the bank account and make sure it is nominated for refund.
Look under Pending Actions and e-Proceedings for notices and respond within the time given.
Compare TDS in Form 26AS and AIS with the return; ask deductors to correct their TDS statements if needed.
If processed but not paid, check the refund status and request a refund reissue on the portal.
Raise a grievance through e-Nivaran on the portal if nothing moves.

/ Interest on delayed refunds

Section 244A.

0.5% per month or part of a month.
For returns filed by the due date, interest generally runs from 1 April of the assessment year; for later returns, from the date of filing.
Interest can be reduced for delay caused by the taxpayer, and is not paid on very small refunds relative to the tax determined.
Interest received on a refund is taxable income in the year received.

Sources: TaxGuru: refund delay and Section 244A interest; Business Standard: what slows down your ITR refund.

Last updated: 30 October 2026.

/ Ready when you are

Refund stuck?

Email durgesh@bharatquantumprospera.com or WhatsApp +91 78018 87130. Fixed-scope quote within 48 hours.

Get a firm quote → WhatsApp Durgesh

FAQ

Common questions, answered.

Why is my ITR refund delayed in 2026?

Common reasons are a return that was not e-verified, a bank account that is not pre-validated, TDS mismatches with Form 26AS or AIS, pending notices, or adjustment against an old demand. The Department can also take up to nine months after the end of the year of filing to process the return.

How long can the Income Tax Department take to process my return?

Up to nine months from the end of the financial year in which the return was filed.

Do I get interest on a delayed refund?

Yes, generally 0.5% per month under Section 244A, from 1 April of the assessment year if you filed on time. It can be reduced for delays caused by the taxpayer.

How do I complain about a delayed refund?

Raise a grievance through e-Nivaran on the e-filing portal after checking that no notice or verification is pending.

Can BQP chase my refund?

Yes, including NRI refunds. Email durgesh@bharatquantumprospera.com or WhatsApp +91 78018 87130. Fixed-scope quote within 48 hours.