Income Tax refunds for Assessment Year 2025–26 are being cleared more slowly than usual, leaving many taxpayers concerned.
CBDT Chairman Ravi Agrawal has assured that the department aims to settle nearly all legitimate pending refunds by December 2025.
Why Are Refunds Getting Delayed?
The Central Board of Direct Taxes is carrying out deeper verification of certain high-value and red-flagged refund claims after detecting cases of wrongful or excess deductions. According to Agrawal, some taxpayers were found claiming incorrect benefits, leading to stricter scrutiny.
Common reasons for delays include:
- Wrong or excess deduction claims
- Mismatch in TDS/TCS credits with Form 26AS/AIS
- Incorrect allowances or exemptions by salaried taxpayers
- Defective returns due to incorrect reporting
- Past instances of dubious claims
While low-value refunds are being released smoothly, high-risk cases are undergoing manual checks. Taxpayers who made genuine errors have been advised to file revised returns.
Interest on Delayed Refunds
Those who filed ITRs on or before September 16, 2025, will earn 0.5% interest per month (6% annually) from April 1, 2025, until the refund is issued — even if the delay is due to departmental verification.
When Will Refunds Be Issued?
Normally, refunds are processed within 4–5 weeks. However, due to the ongoing review drive, many refunds are now expected to be cleared by end of December 2025.
How to Check Your Refund Status
- Log in at the Income Tax e-filing portal
- Go to e-File → Income Tax Returns → View Filed Returns
- Select AY 2025–26
Click View Details to check:
- ITR processing status
- Refund status (Issued / Failed / Under Processing)
- Refund amount and date (if issued)
Check your registered email and portal messages for any notices or discrepancy alerts.
Not Received Your Refund Yet? Do This
- Ensure PAN–Aadhaar linkage
- Pre-validate your bank account
- Match TDS details with Form 26AS/AIS
- Respond promptly to any notices under Pending Actions or e-Proceedings
- If everything is correct, raise a grievance on the portal or call CPC helpline: 1800 103 0025