ITR refund delayed? CBDT explains why and when you’ll finally get it

Many taxpayers across the country continue to wait for their income tax refunds for FY 2024–25 (AY 2025–26), despite filing their returns months ago.

While a large number of refunds have already been processed, others remain delayed, prompting concerns among filers.

This year’s Income Tax Return (ITR) filing deadline was September 16, after which many taxpayers expected a faster turnaround. However, the delay has been more pronounced for some categories of returns.

Why ITR Refunds Are Delayed

Addressing the issue on Monday, CBDT Chairman Ravi Agrawal said the department is currently examining cases where refund claims may involve wrongful deductions or discrepancies. As a result, some returns have been held back for enhanced scrutiny.

Agrawal said the income tax system flagged several refund requests as “high-value” or “red-flagged”, triggering a deeper review before processing.

“Low-value refunds are being released. We analysed and found that some wrong refunds or deductions were being claimed. So, this is a continuous process,” he explained.

He further noted that the perception of “negative growth” in refund disbursal may also be due to a fall in refund claims, following the rationalisation of TDS rates.

As per official data issued last week, refund outgo dropped 18% to ₹2.42 lakh crore between April 1 and November 10 this year.

The department has also written to taxpayers to file a revised return if they missed reporting any crucial details or income components.

Agrawal added that appellate authorities are working “overtime” to liquidate pending appeals.

“This year, more than 40% higher disposal has been achieved compared to last year. We hope to end the year with a significantly larger number of appeals disposed of,” he said.

When Will Refunds Be Released?

Taxpayers can expect pending refunds to be credited by the end of this month or by December, according to the CBDT Chairman. Simple, low-value returns without discrepancies are typically processed faster, he emphasised.

How to Check Your ITR Refund Status

To track refund status online:

• Visit the Income Tax e-filing portal: https://www.incometax.gov.in
• Log in using your PAN-linked credentials and OTP.
• Go to e-File → Refund/Demand Status.
• Select AY 2025–26.
• Click ‘View Details’ to see the latest status.

Key Takeaways

• Pending refunds expected by December 2024.
• Delays primarily due to scrutiny of flagged refund claims.
• Refund outgo down 18%, partly due to rationalised TDS rates.
• Taxpayers advised to revise returns if errors are suspected.