How Many Days Does It Take for a Tax Refund to Be Credited?

Income tax refund processing in India is governed by Section 143(1) of the Income-tax Act, 1961. As per amendments made through the Finance Act, 2021, the Income Tax Department is required to process returns within nine months from the end of the financial year in which the return is filed. For example, for returns pertaining to FY 2023–24 (AY 2024–25), the last date for processing is December 31, 2025. This statutory timeline serves as the outer limit; in most cases, refunds are issued much sooner.

Typical Timeline After E-verification

Once a return is filed and electronically verified, the Centralized Processing Centre (CPC) in Bengaluru takes over the job of validating and processing it. According to the official e-filing portal and NSDL guidelines, refunds are usually credited within 20 to 45 days from the date of successful e-verification. Early filers, with accurate returns and validated bank details, often receive refunds within 7 to 14 working days, especially when verification is completed via Aadhaar OTP or net banking.

Factors That Influence Refund Speed

The timeline for refund credit depends on several practical factors:

E-verification method: Returns verified electronically get processed faster than those submitted through physical ITR-V forms.

Bank account validation: If the bank details (account number, IFSC, PAN linkage) are not validated, refunds are delayed or fail.

Discrepancies in income details or TDS claims: Mismatches between the filed return and Form 26AS or AIS data can trigger scrutiny.

Filing season: Returns filed closer to the deadline face longer processing times due to server load and increased filings.

Manual review by Assessing Officer: If CPC flags a return for scrutiny, it is diverted for manual review, increasing refund timelines.

Real-World Timelines and Taxpayer Experiences

Anecdotal reports from various taxpayer forums such as Reddit, along with news portals like India Today and Economic Times, reveal that many refunds are credited surprisingly quickly—some even within a day or two of filing and e-verification. In contrast, more complex cases or those flagged for review may take up to two or three months. A common thread among delayed refunds is inaccurate or incomplete data submitted during filing.

Government Initiatives to Expedite Refunds

To speed up refund issuance, the government has undertaken several reforms. The Central Board of Direct Taxes (CBDT) recently extended the refund processing window for older returns (AY 2020–21 onwards) till November 30, 2025, enabling faster resolution of pending refunds. The integration with the National Payments Corporation of India (NPCI)has also made the refund credit process faster and more efficient, with future plans hinting at near-instantaneous credits.

Best Practices to Receive Refunds Early

Taxpayers looking to receive their refunds promptly should take the following steps:

E-verify the return immediately after filing, preferably using Aadhaar OTP or net banking.

Pre-validate bank account on the income tax e-filing portal to avoid transaction failures.

Ensure accuracy in income declarations, TDS claims, and consistency with Form 26AS and AIS.

File early in the financial year to avoid delays during the peak period.

Monitor refund status on the e-filing or NSDL portals and raise a grievance if it’s delayed beyond 45 days.

Income Tax Refund Customer Care​

Toll-Free Helpline Numbers

The Income Tax Department and its associated bodies provide dedicated helplines for refund, e-filing, and related queries:

E‑filing & Centralized Processing Centre (CPC)

Refund / Rectification-Specific Helpline
You can also call 1800 103 4455 or +91‑80‑46605200—dedicated lines for refund and rectification issues.

Aaykar Sampark Kendra (general queries including PAN/TAN):
1800 180 1961 (also accessible as 1961), accessible Monday–Saturday, 08:00–20:00.

TDS/TRACES queries (including Form 26AS and Form 16 accuracy):
1800 103 0344 or +91‑120‑4814600, available 10:00 – 18:00, Mon–Sat.

AIS / Reporting Portal queries:
1800 103 4215 for AIS/TIS/SFT or e-verification queries, open 09:30–18:00, Mon–Fri.

Taxpayer Demand Facilitation Centre (for notices or outstanding assessments):
1800 309 0130, +91‑821‑6671200, +91‑821‑7151515.

Email Support for Refund & ITR Issues

You can also send emails to the relevant helpdesk:

• ITR filing and refund issues (ITR 1–7): ITR.helpdesk@incometax.gov.in.
• OVerall e‑filing issues: efilingwebmanager@incometax.gov.in.

When to Call or Write

• After 20–45 days of e‑verification with no refund credited: contact the e‑filing/CPC helpline.
• If refund status shows “Refund under process” beyond 45 days: escalate via CPC helpline or email.
• If you received a refund intimation (Form 26AS discrepancy): use the TDS/TRACES helpline to confirm details before contacting CPC.

Tips for Effective Support Requests

1. Keep your ITR Acknowledgment Number, PAN, and bank details ready when calling or emailing.

2. Specify your request clearly—mention refund credit date or mention if it’s under processing.

3. Note down the call ticket number for reference in follow‑up calls.

4. Use email for detailed issues, especially if you have supporting documents (Form 26AS, bank account screenshots, etc.).

Interest On Income Tax Refund​

Under Indian law, Section 244A of the Income-tax Act, 1961 provides for the payment of interest by the Income Tax Department on delayed refunds. This provision ensures that when excess tax has been paid by a taxpayer—either through TDS, advance tax, or self-assessment tax—the taxpayer is compensated for the delay in receiving the refund.

The section is applicable to all types of taxpayers, including individuals, firms, and companies. The rate of interest payable is 0.5% per month, which amounts to 6% per annum, calculated from the relevant date until the refund is actually credited.

When Does Interest Start Accruing?

The date from which interest becomes payable depends on when the income tax return was filed and whether the tax payment was made in advance or as self-assessment.

1. Return filed on time (under Section 139(1)):
   If the return is filed within the due date, interest is calculated from April 1 of the assessment year to the date the refund is issued.

2. Return filed late:
   In such cases, interest is calculated from the date of filing the return or date of tax payment, whichever is later, until the refund is granted.

3. Self-assessment tax refunds:
   Interest accrues from the date of payment of self-assessment tax or return filing, whichever is later.

It is important to note that no interest is payable if the amount of refund is less than 10% of the total tax liability for the relevant financial year.

Additional Interest in Case of Appeal or Revision

If the refund arises as a result of an appellate order or a revision by higher authorities (under Sections 250, 254, 260, 263, or 264), the taxpayer is entitled to an additional interest of 3% per annum. This interest is payable from the end of the time limit allowed for giving effect to the order to the date the refund is granted.

Illustrative Example

Suppose a taxpayer is entitled to a refund of ₹1,00,000, and the delay is for 6 months from the beginning of the assessment year. In such a case:

• Monthly interest = ₹1,00,000 × 0.5% = ₹500
• Total interest for 6 months = ₹500 × 6 = ₹3,000

Thus, the taxpayer would receive ₹1,03,000 as the refund amount (₹1,00,000 principal + ₹3,000 interest).

Taxability of Interest on Refund

The interest received on the income tax refund is taxable as income under the head “Income from Other Sources” in the year in which it is received. The Income Tax Department deducts TDS (Tax Deducted at Source) on such interest if the amount exceeds a certain threshold. This TDS is reflected in Form 26AS and can be claimed while filing the income tax return.

Recent Developments and Implications

For the Assessment Year 2025–26, the government has extended the due date for filing ITRs to September 15, 2025, instead of the usual July 31. Despite the extension, for the purposes of calculating interest on refund, the starting date remains April 1, 2025, provided the return is filed within the extended deadline. This means taxpayers may receive additional months of interest, depending on when their refund is processed.

Conclusion: What to Expect

While the statutory timeline allows up to nine months for refund processing, most taxpayers can expect refunds to be credited within three to six weeks from e-verification if the return is accurate and all details are in order. Those who encounter discrepancies or are selected for manual scrutiny may experience longer wait times of up to three months. Ongoing improvements in tax infrastructure, automation, and payment systems are steadily making the refund process faster and more seamless for Indian taxpayers.