Refunds, e-verification, notices and corrections · Tax Year 2025-26
Refund failed: bank account not validated
An income tax refund fails when the bank account in your return is wrong, closed or not validated on the portal. Learn why it happens, what to check, and how to get the refund reissued.
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A refund fails when the bank account named in your return cannot receive it: the account number or IFSC is wrong, the account is closed, the name does not match, or the account is not validated for refunds on the Income Tax portal. Fix it by checking and validating the account on the portal, then asking for the refund to be reissued.
The portal steps below follow the department's own e-Filing user manuals for My Bank Account and Refund Reissue. Screen labels can change, so follow the portal if it differs.
First check your refund stage
A refund moves through four stages: filed, verified, processed and refund issued. A failure only makes sense after the refund is issued, so confirm the stage first. See income tax refund status and delays.
If the return is not yet e-verified, nothing will move. A return must be e-verified within 30 days of filing, or it is treated as never filed. See how to e-verify your ITR.
Why a refund fails
Reason | What it means |
|---|---|
Account not validated | The account was not pre-validated for refunds on the portal |
Wrong account number or IFSC | The details in the return do not match a real account |
Account closed or inoperative | The bank rejected the credit |
Name mismatch | The name on the account differs from the name on your PAN |
PAN not linked to the account | The account must be linked to your PAN at the bank before the portal can validate it |
Account frozen or under litigation | The bank cannot accept the credit |
Account type not accepted | A refund goes only to a validated savings, current, cash credit, overdraft or NRO account |
These are the reasons the portal's My Bank Account manual gives when validation fails: PAN-account-IFSC linkage failed, name mismatch, account number mismatch or not existing, account closed, inactive, frozen or under litigation, and invalid account type.
What to do, step by step
- Read the failure message. The portal or the intimation emails you the reason. Note the reference number.
- Check the account in your return. Compare the number, IFSC and the holder's name with your passbook.
- Validate the account on the portal. Go to My Profile > My Bank Account and add the account, or revalidate it from the Failed tab. The status shows "Validation in Progress" and then "Validated" (or "Validated and EVC enabled"). Then nominate it for refund. If the status says "Validation cannot be done", add an account with a bank that is integrated with the e-Filing portal.
- Make sure the account is active and can receive credits. If it is closed, use a different one.
- Request a refund reissue. Go to Services > Refund Reissue, click Create Refund Reissue Request, select the record, choose the validated account, and e-verify the request with an Aadhaar OTP, EVC or DSC. Note the Transaction ID. Only validated accounts are shown, and the service is open only where a refund has actually failed. See how to request a refund reissue.
- Track it. The refund status shows when it is reissued. See income tax refund status and delays.
- Ask your bank if the status shows credited but you cannot see the money.
- Ask a Tax Expert if the case does not move.
Avoid the problem next time
- Validate your bank account before you file, and name it in the return.
- Keep your mobile number and email current on the portal.
- Use an account in your own name that you use often.
- E-verify promptly.
Interest on a late refund
If the department delays a refund, it pays interest. In TaxCare's rules for the tax year 2025-26, the rate is 0.5% per month, and no interest is paid if the refund is below 10% of the tax determined. If the proceedings resulting in the refund are delayed for reasons attributable to you, that period of delay is left out when interest is counted.
For the tax year 2026-27, the first under the Income-tax Act, 2025, the same rate is carried forward provisionally and is not yet signed off.
When there is a demand instead
Sometimes the refund is not paid because the department has set it off against a demand from another year. The department must first tell you in writing that it proposes to do this. On the portal the intimation appears under Pending Actions > Response to Outstanding Demand, where you can say the demand is correct or disagree with it in full or in part. If you do not respond, the demand is confirmed and adjusted against your refund.
Updated returns and refunds
An updated return (ITR-U) cannot claim a refund. If you need a refund, file a belated or revised return within its window instead. See what happens if you miss the ITR due date.
How TaxCare helps
TaxCare follows your return through the department's stages, reminds you to e-verify, and keeps your acknowledgement and filed ITR ready. If a refund needs a follow-up, you can book a Tax Expert. See pricing.
This guide gives general information and is not professional tax advice.
Questions on this topic
Why did my refund fail?
Common reasons are a wrong account number or IFSC, a closed or inoperative account, a name mismatch, or an account that is not validated for refunds on the Income Tax portal.
Do I need to e-verify first?
Yes. A refund is processed only after the return is e-verified within 30 days.
How long does a refund take?
It depends on the department's processing. No one outside the department can promise a date.
Is interest paid on a delayed refund?
In TaxCare's rules for the tax year 2025-26, 0.5% per month, with no interest if the refund is below 10% of the tax determined.
Ready to file your ITR?
TaxCare fetches your AIS and TDS from the Income Tax portal, checks every figure and files the return that saves you the most. 25% off your first filing.