Many taxpayers are awaiting their income tax refund this year amid a prolonged delay in payments. The non-audit ITRs for AY 2025-26 were filed by September 16, and the taxpayers expected the refunds as soon as possible. Though some refunds are awaited, the Central Board of Direct Taxes (CBDT) has given welcome news, saying that the payouts are likely to be released by December 2025.
CBDT Chairman Ravi Agrawal also said the tax department is undertaking an analysis of wrongful deductions claimed in certain cases, leading to a delay in issuance of refunds, and legitimate payouts are expected by December.
Why Are Some Refunds Getting Delayed This Year?
The CBDT chief said the income tax department was analysing some of the refund claims which were identified as “high-value” or were “red-flagged” by the system due to claims of certain deductions.
“We have also written to the taxpayers to file a revised return in case they have forgotten something,” he said, while speaking to reporters on the sidelines of an event held at the Bharat Mandapam here, as reported by PTI.
When Will Remaining Refunds Be Released?
Agrawal said that though low-value refunds are being released, the remaining refunds are expected to be released by this month or by December.
“Low-value refunds are being released. We have analysed and found that some wrong refunds or deductions were being claimed. So, this is a continuous process. We hope to release the remaining refunds by this month or by December,” Agrawal told reporters after he inaugurated a taxpayers’ lounge at the ongoing India International Trade Fair (IITF).
‘Negative Growth In Refunds’
Agrawal said a “negative growth” was being seen in refunds, maybe because refund claims have also gone down, even as TDS (Tax Deducted at Source) rates were rationalised.
Refund issuances, as per official data updated till last week, dropped about 18 per cent to over Rs 2.42 lakh crore between April 1 and November 10.
Agrawal also said the department and the Board were working to reduce litigation vis-a-vis direct tax cases.
“We have taken a lot of steps and our appellate authorities are working overtime to ensure that the pendency is liquidated.
“During prior years…because of Covid etc., pendency got accumulated, but I may share that this year more than 40 per cent, as compared to last year, disposal has been done in appeals and I think we will end the year with a much, much higher number of appeals disposed of,” the CBDT Chairman said.
