The process for filing Income Tax Returns (ITR) for the financial year 2024–25 will begin soon.
The last date to file ITR is July 31, 2025, for taxpayers whose accounts don’t need to be audited.
If returns are filed after this date, taxpayers will have to pay penalties and interest on the due tax amount. Tax experts advise not to wait till the last minute.
However, this year, even if you file your return before the deadline, there may still be a delay in receiving your tax refund. Here’s why.
Early ITR Filing Usually Brings Faster Refunds
When you file your ITR before the deadline, the Income Tax Department starts processing your return quickly.
If everything in the return is correct with no errors or mismatches, the refund is usually issued within a few weeks.
Most early filers receive their refund faster as their returns are processed on a first-come, first-served basis.
But this time, things might be different for some taxpayers.
Income Tax Department Has Sent Emails to Some Taxpayers
According to a report by The Economic Times, some taxpayers have received emails from the Income Tax Department stating that their refunds are on hold.
The reason given is that their returns have not been assessed or reassessed yet, and the refund will only be released after a proper review by the tax officer.
The email also mentions that if the department finds any unpaid tax dues from earlier years, they will adjust that amount from the taxpayer’s refund.
Check Your Email Carefully
This email was sent by the Deputy Director of Income Tax on March 11, 2025.
If you’ve received this email, it means your refund could be delayed, or in some cases, you might receive a reduced amount—or no refund at all.
Tax experts suggest checking your email inbox carefully. If you haven’t received any such email, that likely means your return doesn’t require reassessment, and you should get your refund on time.
Section 245 Will Be Used for Adjustments
The Income Tax Department has stated that if your refund is adjusted due to pending tax dues, they will do so under Section 245(2) of the Income Tax Act, 1961.
This section allows the department to adjust your current year’s refund against outstanding tax demands from previous years.
One important point is that there is no time limit for such adjustments under Section 245, meaning it can be applied at any time if pending tax dues are found.
