Waiting for your income tax refund? Before assuming that the refund is simply delayed, there are a few things you should check.
This year, there is one specific issue taxpayers should be aware of.
The income tax department sent a reminder on August 17, 2026, to taxpayers whose refunds have been kept on hold because their PAN is inoperative as it is not linked to Aadhaar.
What the income tax department said on August 17
The communication from the Income Tax Department says:
"Your return for the A.Y. ASSESSMENT_YEAR has been processed u/s section code on date and the net refund has been determined. However the determined refund and interest u/s 244A thereon will be on hold as per section 139AA(2) of Income Tax Act, 1961 read with rule 114AAA, as your PAN is inoperative since your PAN is not linked to Aadhaar."
The department then asks taxpayers to link their Aadhaar with PAN.
In simple terms, this means the department has already processed the return and determined the refund, but the refund is being held because the PAN is inoperative due to the PAN-Aadhaar link not being completed.
The department's communication also says:
"In case the above mentioned PAN pertains to a deceased taxpayer, please ensure the legal heir's PAN is linked with Aadhaar and later raise a refund reissue request for this deceased taxpayer's refund through legal heir's login."
The department also notes that taxpayers who do not have Aadhaar should get one and link it with PAN.
Who is exempt from Aadhaar-PAN linking?
The income tax department's communication refers to CBDT Notification No. 37/2017 and lists certain exemptions for individuals who do not have Aadhaar.
It says:
The following are the exemptions provided in the said notification for an individual when he/she doesn't have Aadhaar.
residing in the States of Assam, Jammu and Kashmir and Meghalaya;
of the age of eighty years or more at any time during the previous year;
not a citizen of India
The department further says that "if a taxpayer believes they qualify for an exemption, they should contact their jurisdictional Assessing Officer with supporting documents to establish their exemption.
Once the exemption is verified and the taxpayer's status is updated, the department says the pending refund will be released automatically by CPC-ITR, subject to the availability of a validated bank account."
What else should you check if your refund is delayed?
The PAN-Aadhaar issue is one reason for a refund being held. But there are other common issues that can prevent a refund from being credited to your bank account.
Check your bank account
Make sure the bank account you have provided on the income tax e-filing portal is valid and has been pre-validated.
Check your bank details
Check the account details and IFSC code you entered while filing your return. An incorrect detail can result in a refund failure.
Check whether the account is still active
If you provided an old bank account and it has since been closed, the refund cannot be credited to that account.
Check your refund status
If you are still waiting, check your return and refund status on the income tax e-filing portal.
The August 17 communication makes clear that a refund can already have been determined but still remain on hold when the PAN is inoperative because it is not linked to Aadhaar.
Have a personal finance, mutual fund, or income tax query? We will try to get them answered by experts. Write to sangeeta.ojha@rksv.in
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