No Refund on ITR AY 2025-26? Here’s What It Means
If you’re seeing “No refund until verification is complete” on your Income Tax Return (AY 2025–26), you’re not alone. The Income Tax Department has flagged multiple ITRs for review — and as per recent CBDT instructions, refunds in such cases will not be processed until the department completes its internal checks.
This delay is not random. Here’s what it means, why it happens, and what you can do.
Why Are Refunds Being Withheld?
The Central Board of Direct Taxes (CBDT) and Income Tax Department are running automated risk management systems to detect mismatches and suspicious claims. Your ITR refund may be put on hold if:
- You’ve claimed large refunds that don’t match Form 26AS or AIS
- There’s a mismatch between income declared and TDS/TCS
- You’ve claimed excessive deductions or exemptions under Chapter VI-A
- You’ve filed under wrong ITR form or tax regime
- You’re under scrutiny, reassessment or e-verification
Legal Backing: Refund Can Be Withheld U/s 143(1D) or 241A
Under the Income-tax Act, 1961:
- Section 143(1D): If scrutiny notice is issued, refund can be held back until the assessment is complete
- Section 241A: For ITRs processed u/s 143(1), refund can be withheld if likely to affect revenue, with approval from PCIT
In 2023, the Delhi High Court in Nokia Solutions vs. ACIT clarified that refund can’t be delayed indefinitely — it must be backed by proper reasoning. However, in 2025, most flagged ITRs are automated system picks, and the process is still evolving.
How to Check If Your Refund is Under Verification
Here’s how you can confirm:
- Log in to incometax.gov.in
- Go to View Filed Returns
- Under AY 2025–26, check the status
- If it shows: “Return is under verification / refund will be released after completion of verification”, your case is on hold
You may also get an email or SMS about it from ITD. No further action is usually required unless asked.
What Should You Do If Your Refund is On Hold?
✅ Be patient — If your return is clean, verification will complete automatically.
✅ Double-check AIS & Form 26AS — Mismatches are the biggest red flags.
✅ Respond promptly — If CPC sends a notice or seeks clarification.
✅ Don’t file multiple revised returns — It slows things down.
If you’re unsure, a professional review by a CA or Efiletax expert helps ensure nothing is missed.
Expert Tip from Efiletax
“Refund delays in AY 2025–26 are largely system-driven. If you’re confident your income, TDS, and deductions match Form 26AS/AIS, sit tight. But if you’ve made errors, act quickly — rectification or updated return (u/s 139(5)) is the safest option,”
— Efiletax CA Support Team
When Will the Refund Come?
There’s no fixed timeline if verification is ongoing. But in most clean cases, refunds are cleared within 30–60 days post-verification. If the delay exceeds 90 days, consider filing a grievance on the e-filing portal or contacting your Jurisdictional AO.
Real-World Scenario
An ITR-1 filer from Bangalore claimed ₹45,000 refund due to excess TDS. Though all details matched AIS, his return was flagged due to a minor mismatch in gross salary vs. Form 16. Refund was delayed, but released 7 weeks later — no notice, no action needed.
Keyphrase Subheading
No Refund on ITR AY 2025-26: What’s the Compliance Outlook?
Taxpayers should expect tighter refund controls in AY 2025–26. CBDT is focusing on:
- High-risk refund claims
- Mismatches in AIS vs ITR
- Deduction over-claims under Section 80C, 80D
- Wrong selection of tax regime (old/new)
FAQs
Q1. Can I get interest if refund is delayed?
Yes, under Section 244A — but only from the date refund becomes due after verification is complete.
Q2. Should I file a grievance for refund delay?
Only after 90 days, and only if your ITR shows no mismatch or pending action.
Q3. Will I get a notice before refund is stopped?
Not always. Many verifications are backend processes. Notices are sent only if clarifications are required.
Summary
No refund on ITR AY 2025–26 until verification is complete — Income Tax Department is scrutinising mismatches and suspicious claims. Refunds will be delayed for flagged cases.
Need help reviewing your ITR before it’s too late? Let Efiletax handle your tax filing with expert support and refund tracking.