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Why Your Income Tax Refund Might Be Delayed This Year
Despite over 75 Lakh ITRs being filed and over 71 lakh ITRs already e-verified for the Assessment Year (AY) 2025-26, the refunds are due to many taxpayers yet. The reason? The Income Tax Department has put refunds on hold and will issue them only after conducting a detailed scrutiny of tax returns for past years and assessments pending.
What’s Happening?
This year the return filing window opened late – at the end of May 2025, almost a month later than usual. Since then: As many as 75 lakh Income Tax Returns filed 71.1 lakh of them have been e-verified But the Department website no longer lists the number of ITRs processed Payments are reportedly being held up all around The move is the latestin a broader move to thwart fake refund claims.Whatever you do, make sure don’t let the fraudsters slip through the cracks.
Why the Delay?
This is part of a systematic audit by the department, according to experts. CA Suresh Surana said refunds are being withheld until the department carries out a scrutiny of the old ITRs and assessment orders. Even if your current return is pristine, if there’s a pending case or outstanding scrutiny from past years, your refund could get held.
Impact on Honest Taxpayers
Unfortunately, this blanket delay is impacting many honest and timely taxpayers. Those with clean tax histories are now stuck in a bureaucratic bottleneck.
A senior tax consultant notes:
“There is a lack of communication. The department must set up a clear system so taxpayers know the status of their refunds and expected timelines.”
Key Updates at a Glance
- ITR filing began in late May 2025.
- More than 75 lakh returns have been filed.
- 71.1 lakh returns have been e-verified.
- Processing data is not currently visible on the official site.
- Refunds will be processed only after verifying past assessments.
What Should Taxpayers Do?
Don’t panic. Here’s what experts suggest:
- Keep checking your ITR status regularly on the income tax portal.
- Review past notices. If you’ve received any assessment orders earlier, check their status.
- Be patient. Your refund will come, but only after necessary checks.
- New Deadline: The ITR filing deadline for AY 2025-26 has been extended to September 15, 2025, originally July 31.
Final Word
The Income Tax Department’s latest move may seem strict, but it aims to create a refund process that is more resistant to fraud and more transparent. Although the wait can be frustrating, staying informed and making sure your tax filings are accurate and complete will eventually lead to your refund being processed, just a little later than usual.