ITR Refund Status: Millions of taxpayers across the country are still waiting for their income tax refunds. To alleviate their concerns, the CBDT Chairman explained the reasons for the delay.
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ITR Refund Status 2025 Update: The wait is over… Millions of taxpayers across the country are still waiting for their income tax refunds. If you’re one of them, there’s good news for you. Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal said that the income tax target of ₹25.20 lakh crore is expected to be met for the financial year 2025-26. He assured that small refunds are being issued, but larger claims are being investigated to ensure no discrepancies remain.
When will the refunds arrive?
Speaking to reporters at the inauguration of the taxpayer lounge at the India International Trade Fair (IITF), Agarwal said that small refunds are being issued. “We analyzed and found that some incorrect refunds or deductions were being claimed. Therefore, this is an ongoing process. We expect the remaining refunds to be issued this month or by December.”
Regarding collections, Agarwal said that direct tax collections are growing at a rate of 6.99 percent compared to last year, which is an encouraging trend. He said, “We hope to achieve our target by the end of the year. Taxpayer response has also been good.”
Two installments still pending
Net direct tax collections in the current financial year 2025-26 increased by 6.99 percent to over ₹12.92 lakh crore between April 1 and November 10. This was primarily due to low corporate tax collections and slow refund rates. The amount of refunds issued as of November 10 declined by 18 percent to over ₹2.42 lakh crore. He said that two installments of advance tax for the current financial year are still pending, and the due date for filing audited returns for the financial year 2024-25 has been extended.
Agarwal said, “We hope to achieve this target by December 10.” Regarding the new income tax rules, which will come into effect on April 1, Agarwal said the new rules and forms are expected to be notified by the end of the year or January 2026. He said that ITR forms should be relevant and based on the principle of ease of doing business so that taxpayers are not unnecessarily burdened.
