Income-tax Refund Not Received: Pending, Failed or Adjusted?

You have filed your return, but the refund has not reached your account. The next step depends on whether the return is unverified, still processing, paid unsuccessfully or adjusted against an earlier demand.

First, open the relevant year under “View Filed Returns” on the official Income Tax portal. Read the processing history and any notices. A refund claimed in your return is different from a refund determined by the department.

Your status tells you what to do

A simple refund example

Assume your eligible tax credits are ₹57,000 and final tax liability is ₹41,000. The refund claimed is ₹16,000. This fictional calculation assumes the credits are correctly reported and no other adjustment is needed.

If the department determines ₹16,000 but properly adjusts ₹6,000 against a demand, the balance is ₹10,000. A lower receipt therefore does not always mean a bank failure.

1. Check verification first

The general verification period is 30 days from filing. Late verification can change the date treated as the filing date and produce applicable late-filing consequences. Where relevant, check the condonation procedure; acceptance is not automatic.

Uploading an ITR is not the same as verifying it. A confirmation that it is verified is not confirmation that processing is finished.

2. If processing is pending

Check notices, pending actions and registered email. Compare the return with Form 26AS, relevant AIS information, TDS certificates and challans where needed. These records serve different purposes; reconcile differences rather than assuming every AIS entry is taxable income.

For example, if an employer’s certificate shows ₹57,000 TDS but the department’s credit record shows ₹47,000, a bank-account change will not resolve the missing credit. The deductor’s filing may need correction. Keep evidence and avoid claiming the same credit twice.

Department guidance gives an indicative four-to-five-week period for refund credit following verification. It is not a guaranteed deadline. If a delay remains unexplained after status and communication checks, use the official grievance facility with the relevant year and acknowledgements.

3. If payment failed

Read the actual failure reason. Common issues include an unvalidated or closed bank account, a name mismatch, an incorrect IFSC or an inoperative PAN where linking requirements apply. Respect applicable PAN–Aadhaar exemptions.

1. Check account details under My Profile → My Bank Account and complete validation.
2. Open Services → Refund Reissue → Create Refund Reissue Request.
3. Select the eligible failed-refund record and an eligible validated bank account.
4. Complete verification and retain the transaction ID.

The portal manual controls if menu labels change. Refund reissue delivers a failed payment; it does not recalculate income, add missing credits or cancel a demand.

4. If a demand is involved

Open Pending Actions → Response to Outstanding Demand and examine the year, amount and underlying order. Compare previous payments, orders and rectification outcomes before selecting agreement, disagreement or partial disagreement.

A proposed adjustment requires attention to the communication and response period. For cases governed by the 1961 Act, Section 245 is relevant. A demand already adjusted may require the appropriate further remedy; merely changing a bank account will not undo it. Do not agree solely because a demand appears on screen.

Which law and year should you check?

The Income-tax Act, 2025 commenced on 1 April 2026. Income for FY 2025–26, reported for AY 2026–27, remains under the 1961 Act and its transition provisions. Tax year 2026–27 falls under the new Act. Processing a refund after April 2026 does not by itself move an older year to the new law.

Keep these records ready

PAN, relevant year, return acknowledgement, verification record, computation, processing intimation, tax-credit evidence, challans, bank validation details and any demand or refund-failure communication.

Common questions

Should I file another return because the refund is late? Delay alone is not a reason. First identify the status; a revised return has its own legal conditions and deadlines.

Can another account receive the refund? The reissue procedure permits selection of an eligible validated account. Follow the live portal’s conditions.

When does professional review help? Where there is a substantive adjustment, disputed credits, a prior-year demand or a notice with a response deadline. The remedy depends on the order and year.

Your practical next step: save the status and processing intimation, identify the matching row in the table, and follow that route.

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