Income tax refund status: what each status means
The statuses an income tax return passes through on the e-filing portal, from e-verification to processing and refund, what each one means, and what to do when a refund fails or is adjusted against a demand.
Published by SKAG and Associates · Page maintained by CA Gaurav Singh (ICAI M.No. 539050) · Last updated: 30 October 2026
Note: General information as at 30 October 2026, for returns of AY 2026-27 and earlier years under the Income-tax Act, 1961. The wording on the portal changes from time to time. This is not a substitute for professional advice.
After a return is uploaded, the e-filing portal shows its status under the list of filed returns. The status moves from verification to processing at the Centralised Processing Centre, which issues an intimation under Section 143(1) showing whether the return results in a refund, a demand or neither. The table explains the statuses most often seen and the usual next step.
Status by status
| Status | What it means | What to do |
|---|---|---|
| Submitted and pending for e-verification | The return is uploaded but not yet verified. It must be e-verified (or the signed ITR-V sent) within 30 days of uploading. If it is verified later, the date of verification is treated as the date of filing (so a late fee and interest can apply); a return never verified is treated as not filed. | E-verify through Aadhaar OTP, net banking, a pre-validated bank or demat account, or a DSC. |
| Successfully e-verified | The return is filed and waiting for processing at the Centralised Processing Centre (CPC). | Nothing, unless a communication arrives. Make sure the refund bank account is pre-validated. |
| Defective return (Section 139(9)) | CPC has found a defect, such as income or tax details that do not fit the form chosen. | Respond on the portal within 15 days of the notice, normally by filing a corrected return, or the return is treated as invalid. |
| Processed with refund due | The intimation under Section 143(1) has been issued and a refund is determined. It is then sent to the refund banker for payment. | Read the intimation and compare it with the return. The credit usually follows within a few weeks. |
| Refund issued / refund paid | The refund has been sent to the bank account, with the mode, date and reference shown. | Check the bank statement. Interest under Section 244A, where due, is shown separately and is taxable income of the year it is received. |
| Refund failed | The bank could not credit the refund. | Correct the reason (account closed, not pre-validated, name mismatch, inoperative PAN), then file a refund reissue request on the portal. |
| Refund adjusted against outstanding demand | The refund, in full or in part, has been set off against tax shown as payable for another year (Section 245). | If you had disputed the demand or it is already paid or stayed, respond to the outstanding demand on the portal with the details. |
| Processed with demand due | The processing has found tax payable, for example because of a mismatch with Form 26AS or the AIS. | Pay it, or record disagreement with reasons under the response to outstanding demand, or request rectification, within the time stated. |
| Processed with no demand and no refund | The return is accepted with nothing payable either way. | Keep the intimation with the return records. |
Status names are as commonly shown on the e-filing portal; the exact wording can differ.
When a refund fails
A refund fails when the bank cannot credit it. The usual causes are an account that was closed or not pre-validated, a name on the account that does not match the PAN, an incorrect IFSC, or a PAN that has become inoperative. After correcting the cause and pre-validating the account, a refund reissue request is raised from the services menu of the e-filing portal, choosing the account to which the refund should be sent.
When a refund is adjusted against a demand
If the records show tax outstanding for another year, the refund can be set off against it under Section 245, after an intimation to the taxpayer. Many such demands turn out to be already paid, reduced in appeal or rectification, or stayed. The response is filed on the portal under the outstanding demand, stating whether the demand is correct, partly correct or disputed, with the supporting details. A demand that arose from a processing mistake can also be corrected by a rectification request.
Interest on a delayed refund
Where the refund arises from advance tax, TDS or TCS, interest under Section 244A of the 1961 Act is generally paid at 0.5% for each month or part of a month: from 1 April of the assessment year if the return was filed by the due date, or from the date of filing for a late return, up to the date the refund is granted. No interest is paid where the refund is less than 10% of the tax determined, for any delay caused by the taxpayer, or for the period a PAN was inoperative. The interest is taxable in the year it is received. For Tax Year 2026-27 onwards, interest on refunds is in Section 437 and set-off against a demand in Section 438 of the Income-tax Act, 2025; other provisions can be looked up in the section finder.
When the status does not move
A return can stay at “successfully e-verified” for some weeks during peak months. The law allows up to nine months from the end of the financial year in which the return was filed for the intimation under Section 143(1). If the status has not changed for a long time, check for pending actions or communications on the portal, such as a request to confirm a refund claim, a defective return notice or an outstanding demand, before raising a grievance on the portal.
Frequently Asked Questions
Why does my ITR show "refund failed"?
The refund could not be credited to the bank account. Common reasons are a bank account that is not pre-validated on the e-filing portal, a closed account, a name that does not match the PAN, or a PAN that is inoperative because it is not linked with Aadhaar. Fix the cause, then raise a refund reissue request on the e-filing portal.
How long does the department take to process a return?
Under Section 143(1) of the 1961 Act, an intimation can be sent up to nine months from the end of the financial year in which the return was filed. Most returns are processed much sooner, but a refund is not overdue in law until that period ends. For returns from Tax Year 2026-27, the same nine-month limit is in Section 270(4) of the Income-tax Act, 2025.
Can the department adjust my refund against an old demand?
Yes. Under Section 245 the refund can be set off against tax outstanding for another year, after an intimation to the taxpayer. The intimation can be answered on the e-filing portal by agreeing, disagreeing with reasons, or stating that the demand is stayed or already paid.
Is interest paid on a delayed income tax refund?
Yes. Under Section 244A of the 1961 Act, interest at 0.5% a month is generally paid on a refund arising from tax paid in advance or by TDS, from 1 April of the assessment year where the return was filed on time, or from the date of filing for a late return. No interest is paid for the period a PAN is inoperative.
What does "processed with no demand and no refund" mean?
The return was accepted as filed, or with adjustments that leave nothing payable either way. Check the intimation under Section 143(1) for any adjustment you do not agree with; a rectification can be requested on the e-filing portal if the processing contains a mistake apparent from the record.