Many taxpayers are experiencing delays in receiving their income tax refunds this year despite filing their returns several months ago. The deadline for submitting ITR for AY 2025–26 was September 16, and while some individuals have already received their refunds, others are still awaiting clarity on the status of their refunds.
The tax department has addressed the delay and provided insights into when refunds are anticipated to be disbursed. CBDT Chairman Ravi Agrawal mentioned that the Income Tax Department is meticulously examining cases involving potentially erroneous deductions claimed by taxpayers, leading to a slower refund process.
Certain refund requests flagged as “high-value” or “red-flagged” due to unusual deduction claims are undergoing thorough scrutiny, causing the delay. Agrawal highlighted that while smaller refunds are being processed promptly, cases with inaccurate refund claims are undergoing additional scrutiny to prevent errors.
Moreover, the overall slowdown in refund processing may be associated with a decrease in the number of claims following the rationalization of TDS rates this year. Recent government data revealed an 18% decrease in refund payouts, with over Rs 2.42 lakh crore disbursed from April 1 to November 10.
In instances where discrepancies are identified, the department has been reaching out to taxpayers, urging them to file revised returns if necessary. Additionally, efforts are underway to expedite the resolution of pending appeals, with a notable increase in appeals settled compared to the previous year.
Agrawal indicated that taxpayers can expect the remaining refunds to be released by the end of this month or by December. While straightforward cases and smaller refunds are processed expeditiously, returns with discrepancies or unique claims undergo a more thorough verification process.
As the department completes its assessments, taxpayers can anticipate receiving clearer updates and expedited processing in the upcoming weeks.