Income Tax Refund 2025: When Will You Receive Your TDS Refund for FY25?

Are you eagerly waiting for your Tax Deducted at Source (TDS) refund to be credited to your bank account for the Assessment Year (AY) 2025-26 (Financial Year 2024-25)? If yes, you’re not alone.

Every year, thousands of taxpayers file their income tax returns (ITRs) expecting a refund. The good news is that the Income Tax Department has streamlined the refund process, making it faster and more transparent. Here's what you need to know.

When Can You Expect Your TDS Refund in 2025?

For salaried individuals, the ITR filing typically begins after receiving Form 16. Once you file and e-verify your return, refunds are generally processed within 4 to 5 weeks, provided your bank details are accurate and pre-validated, and your PAN is linked to your Aadhaar.

For example, if you filed and e-verified your return on July 2, 2025, you can generally expect the refund to be credited to your bank account between late July and early August, assuming there are no discrepancies or processing delays.

Refund processing only begins after the return is e-verified, so make sure to complete this step promptly after filing.

Step-by-Step Guide to Check TDS Refund Status

1. Log in to the Income Tax e-filing portal.
2. Go to e-File > Income Tax Returns > View Filed Returns.
3. Choose the relevant Assessment Year (AY 2025-26).
4. Click on ‘View Details’ to check your refund timeline and current status.

Is There Interest on Delayed Refunds?

Yes. If your refund is delayed beyond a reasonable period, the Income Tax Department pays interest at 0.5% per month (6% annually) on the refund amount, starting from the date of filing the return to the date of credit.

Why Might Your Refund Be Delayed?

Several reasons can cause a delay in your refund:

• Incorrect or non-prevalidated bank account details.
• Bank account closed or in someone else’s name.
• Discrepancy between ITR and Form 26AS.
• Return filed close to the deadline, causing a processing backlog.
• Errors while filing the return or not responding to an intimation or notice.

What to Do in Case of Delay?

• Verify and update your bank account details on the e-filing portal.
• Check for mismatches or notices under e-File > View Filed Returns > View Notices.
• If everything is correct and the refund is still delayed, raise a grievance on the portal.

Common TDS Refund Status Messages and Their Meanings

After filing your return, you can check your refund status on the Income Tax e-filing portal. Here are some common messages you might encounter:

• ‘No e-filing has been done this year’ – Your ITR hasn’t been filed or e-verified. Ensure you complete both steps.
• ‘Refund determined and sent out to refund banker’ – Your refund is being processed and is on its way.
• ‘Refund unpaid’ – Likely due to incorrect bank details like wrong IFSC code.
• ‘Refund paid’ – Your refund has been successfully credited.
• ‘Not determined’ – Your ITR is still under processing.
• ‘Sent for refund’ – Your return was filed over a month ago and refund is being processed.

If you see any other unclear message, it may indicate an issue that needs attention.

Also Read: ITR Filing FY25: Is It Possible to Earn Crores and Still Pay Zero Income Tax in India?

Conclusion

While the TDS refund process in India has become faster and more user-friendly, delays can still happen due to technical or clerical issues. To ensure timely credit of your refund, file your ITR early, e-verify it promptly, and double-check your bank details.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.