Why Your 2026 Tax Refund Might Be Stuck: Five Common Filing Mistakes

The window for filing Income Tax Returns for the Assessment Year 2026‑27 ends on July 31, and a surge of filings is expected. While the filing requirement is straightforward, several recurring errors can cause the tax refund to be delayed or even disputed.

First, incorrect bank account details are a primary cause of refund delays. The system automatically credits the refund to the bank account linked with the taxpayer’s PAN. An erroneous account number or IFSC code will prevent the transfer, forcing the department to intervene.

Second, many filers forget to report ancillary income such as interest on savings, fixed‑deposit earnings, freelance or consulting fees, rental income, and capital‑gain receipts. The Income Tax Department validates the ITR against Form 26AS and the Annual Information Statement; mismatches trigger a verification process.

Third, using the wrong ITR form is a technical error that can render the filing defective. Each form corresponds to a specific set of income categories; selecting an inappropriate one means the return must be corrected and re‑filed, extending the processing timeline.

Fourth, claiming tax deductions without accurate figures or without keeping supporting documents (investment proofs, insurance receipts, loan statements) can lead to queries and hold up the refund.

Finally, the verification step is often overlooked. After the ITR is submitted, it must be verified online via Aadhaar OTP, net‑banking, or another approved channel. An unverified return is not considered valid, and the refund remains pending until verification is completed.