The Central Board of Direct Taxes (CBDT) has shared an update on delays in income tax refunds for the financial year 2024-25.
Some taxpayers are still waiting for their refunds even though the ITR filing deadline was September 16.
CBDT Chairman Ravi Agrawal explained that the delays are primarily due to an analysis of wrongful deductions claimed in certain cases.
Some refund claims were marked as high-value or red-flagged by the system because of these deductions.
When Will Refunds Be Released?
According to Agrawal, low-value refunds are already being issued.
The remaining refunds are expected to be released by the end of November or December.
The department is also reaching out to taxpayers who may need to file revised returns if something was missed in their initial filing.
Refunds have seen a negative growth, partly because the total number of refund claims has decreased, even though TDS rates were rationalized.
From April 1 to November 10, refund issuances dropped about 18% to over ₹2.42 lakh crore.
What’s Causing the Delays?
The main reason for the delay is verification of certain deductions claimed by taxpayers.
The system flags unusual or high-value claims to ensure accuracy before issuing refunds.
Agrawal also noted that the department is working to reduce litigation in direct tax cases, with appellate authorities clearing more cases than last year.
This year, over 40% more appeals have been disposed of compared to 2023, aiming to reduce pending cases significantly.
Additionally, the IT department will soon notify new ITR forms and rules under the simplified Income Tax Act, 2025, which will come into effect from the next fiscal year.
