Income Tax Refund 2025: How to Know Your Refund and When It Will Arrive

The Income Tax Return (ITR) filing season for Assessment Year 2025-26 is now open. Taxpayers across India have started preparing their income details to file returns before the deadline of 31 July 2025. While most people focus on completing the filing process, many also eagerly wait to know how much refund they will receive and when it will reach their bank account. Here’s everything you need to know in simple words.

Understand How Income Tax Refund Works in ITR Filing 2025

When you file your income tax return, the system automatically calculates your total tax liability. If you have already paid more tax (through TDS, advance tax, etc.) than what is required, the extra amount becomes your income tax refund.

After you file your ITR and complete e-verification, the Income Tax Department processes your return. They then send you an intimation under Section 143(1) through the Centralised Processing Centre (CPC). This notice confirms the final refund amount after checking your return. Sometimes, this refund amount is precisely what you claimed, and sometimes, it is more or less based on their verification.

Calculate Your Expected Refund Before Filing

To estimate your refund, follow these steps:

• Calculate your total income from all sources (salary, business, interest, etc.).
• Deduct eligible exemptions and deductions (like HRA, 80C, 80D).
• Calculate your tax liability as per the latest tax slabs.
• Check how much tax you have already paid (TDS on salary, advance tax).
• If the paid tax is more than the actual liability, the balance becomes your refund amount.

This calculation gives you a fair idea of how much you can expect to receive after filing ITR.

How to File Income Tax Return Online for AY 2025-26

You can easily file your return online through the Income Tax Department’s official e-filing portal. Here’s a quick guide:

1. Visit: https://www.incometax.gov.in/iec/foportal
2. Log in using your PAN number (User ID) and password.
3. Click on ‘File Income Tax Return’ from the dashboard.
4. Choose the assessment year 2025-26.
5. Select the applicable filing status (Individual, HUF, etc.).
6. Choose the correct ITR form based on your income source (ITR-1, ITR-2, ITR-4, etc.).
7. Mention the reason for filing (e.g., taxable income above limit).
8. Review all details, validate, and submit the return.
9. Complete the e-verification process using Aadhaar OTP, Net Banking, or EVC options.

Once your return is successfully verified, refund processing begins.

How to Check Your Income Tax Refund Status Online

You can track your ITR refund status through two methods. Both are easy to use and give real-time updates.

Method 1: Using the Income Tax e-Filing Portal

1. Go to: https://www.incometax.gov.in/iec/foportal
2. Log in using your PAN and password.
3. On the dashboard, select ‘View Returns/Forms.’
4. Choose ‘Income Tax Returns’ from the dropdown menu.
5. Select Assessment Year 2025-26.
6. Click on the Acknowledgement Number to view the refund status.

You will see one of these refund statuses:

• Refund issued
• Refund under process
• Refund failed
• Refund adjusted against outstanding demand

Method 2: Through NSDL’s Refund Status Portal

1. Visit: https://tin.tin.nsdl.com/oltas/Refundstatuslogin.html
2. Enter your PAN number and Assessment Year 2025-26.
3. Fill in the captcha and click on ‘Proceed.’
4. Your current refund status will appear on the screen.

This is a fast and reliable method, especially after you receive the confirmation from CPC.

Refund Timelines and Important Points to Remember

• Refunds usually take 15 to 45 days to be credited after e-verification.
• Make sure your bank account is pre-validated and linked with PAN on the e-filing portal.
• Any mismatch in PAN, name, or bank details can delay the refund.
• Keep your email ID and mobile number updated to receive real-time updates from the tax department.

If there are any errors in your return or the refund is adjusted against old dues, the department informs you via email and SMS.

Who Should File ITR and Claim Refund?

You should file an ITR and claim a refund if:

• TDS was deducted from your salary or interest, but your income is below the taxable limit.
• You paid advance tax, but the actual liability was less.
• You invested in tax-saving instruments after the TDS deduction.
• You made donations or other eligible deductions that reduce your tax burden.

Filing ITR not only helps you get your refund but also acts as legal proof of valuable income for loans, visas, and more.

Disclaimer:

Income tax laws may change based on government updates. Always consult a tax expert or check the official website before filing.

Sources: Financial Express, Income Tax Department