ITR Refund Delays: CBDT Chairman Explains the Reasons Behind the Hold-Up
The chairman of the Central Board of Direct Taxes (CBDT) on Monday issued a key update on the ongoing delays in processing income tax refunds for FY 2024–25. He noted that the department is currently reviewing cases where incorrect or questionable deductions may have been claimed.
According to the CBDT chief, several refund requests have been categorized as “high-value” or have been “red-flagged” by the system because of certain deduction-related claims.
Although the ITR filing deadline for this year was September 16, many taxpayers across the country are still awaiting their refunds.
The Chairman of the Central Board of Direct Taxes (CBDT) on Monday issued a key update on the ongoing delays in issuing income tax refunds for the financial year 2024–25. He noted that the department is currently reviewing instances where taxpayers may have incorrectly claimed certain deductions.
According to the chairman, several refund requests have been flagged by the system as either “high-value” or “suspicious” due to questionable deduction claims. Although the deadline for filing ITRs this year was September 16, many taxpayers across the country are still awaiting their refunds.
When can taxpayers expect their ITR refund?
CBDT Chairman Ravi Agrawal clarified that smaller-value refunds are already being processed, as reported by PTI. He added that all remaining refunds are expected to be issued either within this month or by December.
Agrawal explained that the department has detected several cases involving incorrect refund or deduction claims. These are currently under verification, he said, after inaugurating a taxpayer lounge at the ongoing India International Trade Fair (IITF).
Why are refunds getting delayed?
Agrawal said the delay is primarily due to a detailed review of wrongful or inaccurate deduction claims submitted by some taxpayers. Several refund requests have been categorised as “high-value” or have been red-flagged by the system because of discrepancies in the deductions claimed.
“We have also written to some taxpayers advising them to file a revised return if they have missed declaring any information,” he noted.
The chairman added that there is currently negative growth in refund volumes, which may be linked to a fall in refund claims even though TDS rates were rationalised.
According to PTI, refund issuances have dropped by around 18%, standing at over ₹2.42 lakh crore between April 1 and November 10.
Other Updates
Agrawal also mentioned that the department is working to reduce litigation in direct tax matters. Appellate authorities are making significant progress, with over 40% more appeals disposed of this year compared to last year. He expects the total number of resolved cases to be substantially higher by the end of the year.
Additionally, the Income Tax Department will soon release the new ITR forms and rules under the simplified Income Tax Act, 2025, which will take effect from the next financial year.