Income Tax Refund Processed But Not Credited? Real Reasons and Solutions (2026)
It is a relief to see your Income Tax Refund status show as "Processed" or "Refund Issued". However, many taxpayers face a frustrating situation where the status looks positive, but the money is not credited to their bank account.
Important: “Processed” does not mean the money has reached your bank. It only means the Income Tax Department has completed its calculation and initiated the refund process.
If you recently received a notification about your return, you may want to read our guide on Understanding Intimation u/s 143(1) to confirm your actual refund amount.
• Refund processed but not credited is usually a bank validation issue
• No need to refile your ITR
• Refund can be reissued online
Common Reasons Why Refund Is Not Credited
If your refund is delayed or failed, it is usually due to one of the following reasons:
- Bank Account Not Validated: Your bank account must be Validated and EVC Enabled on the e-Filing portal.
- PAN–Aadhaar Link Status: If your PAN is inoperative because it is not linked with Aadhaar, your refund will be withheld. See our guide on fixing PAN–Aadhaar link errors .
- Name Mismatch: The name on your bank account must match your PAN card exactly.
How to Check Your Refund Status Correctly
Always check refund details only on the official Income Tax portal:
Official portal: https://www.incometax.gov.in
- Log in to the Income Tax e-Filing portal.
- Go to 'e-File' → 'Income Tax Returns' → 'View Filed Returns'.
- Click on 'View Details' to see the exact refund status or failure reason.
How to Re-Validate Your Bank Account
If your bank details have changed or were never validated, follow these steps:
- Go to 'My Profile' → 'My Bank Account'.
- Click on 'Add Bank Account' or 'Re-validate'.
- Ensure the IFSC code is current. If your bank merged recently, check our guide on new IFSC codes and how to fix them .
Step-by-Step: How to Raise a Refund Reissue Request
If your refund failed, you must ask the department to send it again:
- Go to 'Services' → 'Refund Reissue'.
- Click on 'Create Refund Reissue Request'.
- Select the correct Assessment Year.
- Select the validated bank account where you want the refund.
- Verify using Aadhaar OTP and submit the request.
Once submitted successfully, the refund is usually credited within 10 to 15 working days.
Frequently Asked Questions
Q: How long does it take to receive the refund after reissue?
Once verified, the amount is usually credited within 10 to 15 working days.
Q: Can I receive the refund in a joint bank account?
Yes, provided you are the primary account holder and the account is validated on the portal.
Q: I received a tax demand instead of a refund. Why?
This happens if the department’s calculation differs from yours. Check your
143(1) Intimation
for details.
Pro Tip: Always ensure your mobile number is linked with both your bank account and Aadhaar so you receive refund credit alerts without delay.
Disclaimer
This article is for informational purposes only. We are not tax professionals and are not affiliated with the Income Tax Department. For official assistance, always use the official e-Filing portal.
