Most common reason: the bank account is not pre-validated on the income tax portal. Validate it, then file a refund reissue request. The refund is sent again with interest.
Why refunds fail
- Bank account not validated on the e-filing portal, or validation failed.
- PAN not linked to the bank account, or the name in the bank does not match the PAN.
- Account closed, dormant or frozen at the time of credit.
- Wrong account number or IFSC, often after a bank merger changed the IFSC.
- Account type not eligible to receive a refund, such as some loan or deposit accounts.
Step 1: Check the reason
Log in to the income tax e-filing portal and open the refund status for that assessment year. It shows whether the refund failed and the reason given by the bank.
Step 2: Validate the bank account
- Go to My Profile → My Bank Account.
- Add the account, or choose Revalidate on the existing one if the details changed.
- Make sure the account is in your own name, linked to your PAN, and marked as nominated for refund.
- Wait for the status to show Validated. This can take a few days.
Step 3: Raise a refund reissue request
- Go to Services → Refund Reissue → Create Refund Reissue Request.
- Select the failed refund for that assessment year.
- Choose the validated bank account.
- E-verify the request with Aadhaar OTP, net banking or DSC.
The request can only be raised after a refund has actually failed. Once processed, the refund is credited directly to the validated account.
Interest on a delayed refund
Income tax refunds generally carry interest under section 244A at 0.5% per month, so a delayed refund includes interest when it is finally paid.
Refund adjusted against an old demand
If the department proposes to adjust your refund against an earlier outstanding demand, you get an intimation under section 245. Respond on the portal under Pending Actions → Response to Outstanding Demand, choosing to agree, disagree or partly agree with reasons. If you do not respond, the refund can be adjusted against the demand.
We handle bank validation, refund reissue and demand responses for clients every week. Send us your PAN and the refund status screenshot on WhatsApp.
Frequently asked questions
How long does a refund reissue take?
Usually a few weeks after the request is processed, but it depends on the department's processing. You can track it on the e-filing portal.
Can my refund go to a family member's account?
No. The refund is paid only to an account in the taxpayer's own name that is linked to their PAN and validated on the portal.
Can I change the bank account after filing the ITR?
Yes. Validate and nominate the new account on the portal. If a refund has already failed, raise a refund reissue request with the new account.
My refund was adjusted against an old demand I do not owe. What can I do?
Respond to the section 245 intimation on the portal and disagree with reasons and proof. If the adjustment is already done, a rectification request or grievance may be needed.
Is there a time limit to claim a failed refund?
Raise the reissue request as soon as possible after the failure. Delays make it harder to trace and resolve the refund.
This guide is general information based on the law as on the date above. Rules and dates change through notifications, so check your own case with us before acting.