Income Tax Refund Delay 2025: This year, millions of taxpayers are waiting for their income tax refunds. While non-audit ITRs are typically filed promptly, returns filed by September 16 for AY 2025-26 are experiencing significant delays.
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Income Tax Refund Delay 2025: Millions of taxpayers are waiting for their income tax refunds this year. While non-audit ITRs are typically issued promptly, returns filed by September 16th for AY 2025-26 are experiencing significant delays. Regarding the delays, Ravi Agarwal, Chairman of the CBDT (Central Board of Direct Taxes), stated that the remaining refunds would be released by the end of November or December 2025.
Why are refunds delayed?
The CBDT Chairman explained that some refunds are being held up this time because the department has initiated investigations into high-value and red-flagged refund claims. Many taxpayers claimed deductions that the system found suspicious. For this reason, refund files are being separated and examined. The department has also written to many taxpayers that if they have made some mistake in the return or have left out any information, they should file a revised return so that the process can move forward.
When will the remaining refunds be received?
Aggarwal said that small or low-value refunds are being issued regularly. However, refunds that are pending due to investigations will be issued within this month or by December 2025 at the latest. He explained that this is an ongoing process and the department is working to ensure that all valid refunds reach taxpayers as soon as possible.
Why is there negative growth in refunds?
According to official data, refunds issued between April 1 and November 10 declined by approximately 18%. The total refund amount during this period was approximately ₹2.42 lakh crore, which is lower than in previous years. The CBDT Chairman believes that this decline is due to a decrease in refund claims and changes made to TDS.
Efforts to Resolve Tax Disputes
Ravi Agarwal stated that the department is also working to expedite the resolution of pending tax cases. He explained that appeals increased during COVID-19, but this year, 40% more appeals have been resolved compared to last year. The number of appeals is expected to decrease further by the end of the year.
