Income tax refunds have been delayed this year, causing worry among many taxpayers. However, there is some relief.
The Central Board of Direct Taxes (CBDT) has indicated that all pending valid refunds may be released soon.
CBDT Chairman Ravi Agarwal said that scrutiny of high-value cases and system-flagged returns is in the final stages.
According to a PTI report, most refunds are expected to be credited either this month or by December.
He added that low-value refunds are already being issued.
In many cases, incorrect deductions or wrong refund claims have been detected, so further checks are required. The remaining refunds should be released soon, he said.
Reasons Behind the Refund Delays
According to CBDT, refunds are delayed due to several specific issues:
Many high-value refund claims need detailed scrutiny.
Some returns are red-flagged due to incorrect or suspicious deductions.
Taxpayers have claimed excessive or wrong deductions in several cases.
Many individuals were asked to file revised returns for correction.
Decline in Overall Refund Growth
CBDT Chairman Aggarwal also said that the overall number of refunds has decreased this year. This means fewer refunds have been issued compared to last year.
Two major reasons are responsible:
Changes in TDS rates resulted in lower tax deductions for many individuals, reducing their need for refunds.
Fewer taxpayers filed refund claims this year.
These factors together have led to a decline in refund growth.
Why Your Personal Refund Might Be Delayed
There are also individual reasons why refunds may take longer:
Refunds above ₹1 lakh undergo deeper scrutiny.
Returns containing foreign income, capital gains, or multiple income sources need manual verification.
Filing a revised return increases processing time.
Refund is not issued if the return is not e-verified.
Mismatch in Form 26AS or AIS can hold back the refund.
Even small mismatches in data from banks, employers, or institutions trigger additional investigation.
According to official data, refunds issued between April 1 and November 10 declined by about 18%, totalling over ₹2.42 lakh crore.
Extended Return Filing Deadline
This year, CBDT extended the income tax return deadline due to changes in ITR forms and system upgrades.
The earlier deadline of July 31 for individual taxpayers was extended to September 15, 2025.
Later, due to technical issues, it was further extended by one day to September 16. This extension helped taxpayers file their returns smoothly under the upgraded system.
