Why your Income Tax Refund is Delayed and When it will Arrive

Many taxpayers are still waiting for their income tax refunds this year.

Non-audit ITRs for AY 2025-26 were filed by September 16, but delays in processing have kept refunds pending.

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The Central Board of Direct Taxes (CBDT) has now provided reassurance.

Chairman Ravi Agrawal said that most legitimate refunds are likely to be released by December 2025.

Why Are Refunds Delayed?

According to the CBDT, some refund claims are taking longer because they were flagged by the system as “high-value” or had unusual deductions.

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These are being carefully analysed to prevent wrongful payouts.

Agrawal also mentioned that taxpayers who may have missed filing revisions have been contacted to submit updated returns.

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While low-value refunds are already being released, the remaining payouts are expected soon.

What the Data Shows

This year, refund issuances have seen a “negative growth,” possibly due to a drop in claims, even after rationalisation of TDS rates.

Official data shows that refunds between April 1 and November 10 fell about 18% to over Rs 2.42 lakh crore.

CBDT is also working to reduce litigation in direct tax cases.

More than 40% of pending appeals have been resolved compared to last year, and the department expects higher disposal rates by year-end.

Bottom Line for Taxpayers

Low-value refunds are being processed now.

High-value or flagged refunds are under review but expected by December.

Taxpayers may be asked to file revised returns if any information is missing.

The CBDT is actively resolving appeals to speed up refund processes.

Taxpayers can remain optimistic that delays are mostly procedural, and legitimate refunds should reach accounts by December.

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