Income Tax New Rule: If you’re still waiting for your ITR refund in 2025, you’re definitely not alone. A lot of people filed their returns early, did everything right, and yet… nothing shows up in the bank. It’s frustrating, and I get it—when money belongs to you, every week feels too long.
Here’s the thing most taxpayers quietly wonder: “If the Income Tax Department delays my refund, do I get interest on that delay?”
The short answer is yes, but the long answer is where people usually get confused.
Let’s break it down so you know exactly what you’re entitled to—and what you might lose out on.
Does the Income Tax Department Pay Interest on Late ITR Refunds?
Yes, the department does pay interest on delayed refunds. And this is not some goodwill gesture; it’s actually written into the Income Tax rules.
If you filed your ITR on or before September 16 and everything in your return checks out, the department owes you interest from April 1 of the assessment year until the day the refund hits your bank account.
But—there’s a catch.
If you filed your ITR late, the interest clock doesn’t start on April 1.
It starts from the actual date you filed your return.
So, if two people file ITRs—one in July and another in October—the July filer gets interest for more months, while the October filer loses that extra interest. It’s basically the system’s way of rewarding timely filing.
From my own experience of guiding people through tax seasons, this is where most taxpayers lose money without even realizing it. They file late, wait impatiently, get irritated with the delay, and don’t notice that the refund amount includes less interest than expected.
Why Might Your Refund Still Be Delayed?
Even if you filed everything correctly, some common blocks can slow down the refund process. Think of it like a queue—everyone is waiting, but some files take a little more time to examine.
Here are the real reasons your refund may not have arrived yet:
1. Incorrect Bank Details
This is more common than you’d imagine. A wrong account number, an outdated IFSC code, or a non-validated bank account is enough to stop your refund in its tracks.
A simple correction in your e-filing profile can fix it.
2. Mismatch Between ITR and Form 26AS
If the TDS reported by your employer or bank doesn’t match what you entered in your ITR, the system flags it. Until that mismatch clears, the refund stays pending.
3. Revised ITR Takes Longer
If you filed a revised return, the department rechecks everything from scratch. Naturally, that adds extra processing time.
4. Your ITR Is Picked for Scrutiny
This doesn’t mean trouble—sometimes scrutiny is just a random selection or a mismatch check. But yes, it delays the refund.
5. Filing Just Before the Deadline
People who file returns right before the due date often see a delay simply because the system has a massive surge of last-minute ITRs to process.
What Should You Do While Waiting?
If everything in your ITR is accurate and your bank account is validated, patience is genuinely your best friend here. The money will come—it just may take a little longer than expected.
But if you’ve made an error in your ITR, or if your refund keeps getting “failed” due to incorrect bank details, fix those issues immediately through the income tax portal.
If it’s been unusually long, you can also raise a refund reissue request or check your case in the Refund/ITR Status section.
And here’s the reassuring part:
Your refund amount doesn’t disappear.
The money remains yours, and any interest due (based on your filing date) will be added when it’s finally released.
Frequently Asked Questions
1. Do all taxpayers get interest on delayed ITR refunds?
Not exactly. You only get interest from April 1 if you filed on or before September 16. If you filed late, interest is calculated starting from your actual filing date.
2. What happens if I enter the wrong bank details in my ITR?
Your refund will fail. You must update and validate your correct bank account on the income tax portal and then request a refund reissue.
3. How long can an ITR refund take in 2025?
If your return is clean and verified quickly, refunds often arrive in a few weeks. But cases involving mismatches, revised returns, or scrutiny can take significantly longer.
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On or before is a must for refund. Delay is accordingly. But it is must refund.