Income Tax Department Refund Delays: Why Is My ITR Refund Still Pending?

I would distinguish between refund processing delay and refund failure.

If the return is still being processed, there may not be anything you need to do immediately. But if the portal says the refund has failed, that's different.

The Income Tax Department currently provides a Refund Reissue service for cases where a refund has failed. The process involves selecting the relevant ITR, choosing a validated bank account and completing e-verification.

The department has also specifically communicated that refunds can fail when there isn't a validated Indian bank account. In those situations, taxpayers may need to add and validate the bank account and then submit a refund reissue request.

If yours simply says the return is being processed, I'd wait and monitor it rather than submitting a refund reissue request.

If it's been substantially longer than the normal processing period, you can also consider raising a grievance through e-Nivaran. The Income Tax Department provides the grievance facility for e-Filing, CPC-ITR and related issues.

One thing worth checking is whether there is an outstanding tax demand against your PAN.

I had a refund that looked lower than expected, and initially I thought it was an error in processing. Later I found that there was an outstanding demand. The Income Tax Department says an outstanding demand can be adjusted against a refund if the demand remains confirmed.

So I would check the outstanding-demand section before assuming the refund itself is delayed.

For an NRI, I'd also compare the TDS showing in Form 26AS/AIS with the TDS claimed in the ITR, especially if the refund is primarily coming from bank-interest TDS.

Another thing is the bank account. Having an account entered in the ITR isn't necessarily enough. The department's guidance says a refund can fail when the bank account isn't pre-validated, the account holder name doesn't match PAN details, the IFSC is invalid, or the account has been closed.

So I'd check the bank validation status too.

I had a similar issue with my refund, although mine wasn't an NRI return. In my case, I initially assumed that because the return was successfully e-verified, the refund would automatically arrive within a few days. That didn't happen.

From what I found, refund processing starts only after the return is e-verified. The Income Tax Department's refund-status guidance says refunds usually take around 4–5 weeks after e-verification, although individual cases can take longer.

I would first check e-File → Income Tax Returns → View Filed Returns and open the relevant assessment year. The portal shows the ITR lifecycle and refund status there.

Also check your email and the portal for an intimation or discrepancy notice. I wouldn't immediately file another return just because the refund hasn't arrived.

In my case, the important thing was figuring out whether the return was still being processed or whether the refund had actually been issued but failed at the bank stage.