Many taxpayers have been anxiously waiting for their income tax refunds for FY 2024–25 (AY 2025–26), even though their ITRs were filed months ago. With the filing deadline closing on September 16, most expected refunds to arrive sooner; however, a significant number are still awaiting credit.
While many taxpayers have already received their refunds, others were left concerned about the unusual delay. The Central Board of Direct Taxes (CBDT) has now addressed these queries, explaining why the processing has slowed down for certain cases.
Why Are ITR Refunds Delayed This Year?
CBDT Chairman Ravi Agrawal stated on Monday that the Income Tax Department has initiated a deeper review of certain refund claims flagged for inconsistencies. According to him, the system identified several returns with high-value deductions or claims that appeared unusual, prompting manual verification.
“Low-value refunds are being released. We have analysed and found that some incorrect refunds or deductions were being claimed. So, this is a continuous process,” Agrawal explained.
He also noted that the perceived decline in refund payouts is partly because TDS rates were rationalised, leading to fewer claims this year. Official data shows that income tax refunds dropped by 18%—amounting to more than ₹2.42 lakh crore—between April 1 and November 10.
The department has also reached out to taxpayers in some cases, advising them to revise their returns if certain details were missed or wrongly claimed.
Agrawal added that appellate authorities are actively clearing pending cases, which had accumulated during the pandemic. He said this year’s disposal rate stands over 40% higher than last year, and the department expects a significant improvement by year-end.
When Will You Receive Your Tax Refund?
The CBDT Chairman said that pending refunds are expected to be cleared soon, with most likely to be credited by next month.
“We hope to release the remaining refunds by this month or by December,” he told reporters.
Generally, simple returns without mismatches or large deduction claims get processed faster.
How to Check Your ITR Refund Status Online
Taxpayers can track their refund status directly through the income tax e-filing portal. Here’s how:
- Visit the official portal: https://www.incometax.gov.in/iec/foportal/
- Log in using your PAN, password, and OTP authentication.
- Go to the e-File menu and select Refund/Demand Status.
- Choose the Assessment Year — AY 2025–26.
- Click View Details to see the current status of your refund.