Over 1.23 Lakh Income Tax Returns Processed: Here's When to Expect Your Refund

The Income Tax Department has announced a significant milestone in the ongoing tax season, with over 1.23 lakh Income Tax Returns (ITRs) filed within the first five days of the filing window opening. This surge follows delays in the release of ITR forms and utilities, which became available only in late April and early May. Despite the initial setbacks, taxpayers have responded promptly, with nearly 90% of the submitted returns already verified.

Refund Processing Timeline

Taxpayers eager to receive their refunds can expect the processing to commence shortly. The Centralized Processing Centre (CPC) initiates the processing of ITRs only after cross-verifying the information furnished in the return with third-party data sources such as Form 26AS, the Annual Information Statement (AIS), and the Taxpayer Information Summary (TIS).

These sources are populated based on information submitted by prescribed entities under the Statement of Financial Transactions (SFT) and Tax Deducted at Source (TDS) returns. Notably, the deadline for filing TDS returns for the last quarter of the financial year was May 31, 2025.

Once the TDS data is updated, the CPC is expected to begin processing returns in June 2025. Typically, refunds are issued within 5–7 days after the intimation is sent to the taxpayer, provided there are no discrepancies or adjustments required.

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Factors delaying Refund Claims

Several factors can influence the timeline for receiving a tax refund:

• E-Verification: The processing of an ITR begins only after it is duly verified, either through electronic verification or upon receipt of the physical ITR-V at the CPC in Bengaluru.
• Bank Account Validation: Ensuring that the bank account is pre-validated and linked with the Permanent Account Number (PAN) is crucial. Incorrect or unlinked accounts can lead to delays or failures in refund credit.
• Data Accuracy: Discrepancies between the information in the ITR and the data available in Form 26AS, AIS, or TIS can result in processing delays.

Extended Filing Deadline

In light of the initial delays in form availability, the Income Tax Department has extended the deadline for filing ITRs for the financial year 2024-25 (assessment year 2025-26) from July 31 to September 15, 2025. This extension provides taxpayers with additional time to file their returns without incurring penalties.

Checking Refund Status

Taxpayers can monitor the status of their refunds through multiple channels:

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1. Income Tax E-Filing Portal: Log in to the portal, navigate to 'e-File' > 'Income Tax Returns' > 'View Filed Returns,' and select 'View Details' for the relevant assessment year.
2. NSDL Website: Visit the NSDL refund status page, enter your PAN and assessment year, and view the refund status without logging into the Income Tax portal.
3. TRACES Portal: Access Form 26AS through the TRACES portal to view detailed tax credit information and refund status.

Interest on Delayed Refunds

If a refund is delayed beyond a reasonable period, the Income Tax Department pays interest at 0.5% per month (6% annually) on the refund amount, starting from the date of filing the return to the date of credit.

Conclusion

With the processing of ITRs already commenced in June 2025, taxpayers who have filed and verified their returns can expect refunds to be credited within a few weeks, assuming all details are accurate and complete. The extended filing deadline offers additional flexibility, but early filing and verification can expedite the refund process.

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