The clearance of Income Tax refunds for the Assessment Year 2025-26 has been slower than expected this year, causing anxiety among taxpayers. In response, CBDT Chief Ravi Agrawal has provided assurance, stating that the board aims to settle almost all legitimate outstanding refund claims by December 2025.

Why Are Income Tax Refunds Delayed This Year?

The Central Board of Direct Taxes (CBDT) is conducting deeper verification of certain “high-value” and “red-flagged” refund claims. According to CBDT Chairman Ravi Agrawal, as reported by PTI, the department noticed instances of wrongful or excess deductions being claimed by some taxpayers, prompting stricter checks.

Common reasons behind the delay or withholding of refunds include:

• Wrongful or excess deduction claims under various sections.
• Mismatch in TDS/TCS credits shown in Form 26AS/AIS versus the return.
• Incorrect exemption or allowance claims by salaried individuals.
• Defective returns due to the wrong reporting of income.
• Heightened scrutiny on taxpayers who claimed dubious deductions in earlier years.

The Chairman clarified that low-value refunds are being released without hindrance, while high-risk cases are under manual review. Taxpayers who may have made genuine mistakes have also been asked to file revised returns voluntarily.

Good News: You Still Earn Interest on Delayed Refunds

If you filed your ITR on or before September 16, 2025, you are entitled to interest at 0.5% per month (6% per annum) from April 1, 2025, till the date of refund, under Section 244A. Even if processing is delayed due to department scrutiny, the interest keeps accruing automatically.

When Can You Expect Your Refund?

The income tax portal usually processes refunds within 4-5 weeks of filing. However, because of the ongoing special drive, many legitimate refunds are now expected to be released by the end of December 2025.

How to Check Your Income Tax Refund Status in 2 Minutes (Step-by-Step)

Follow these simple steps on the official e-filing portal:

• Visit https://eportal.incometax.gov.in/iec/foservices/#/login
• Enter your Login ID (PAN/Aadhaar/Other ID), then write your Password.
• Go to e-File tab, then select 'Income Tax Returns', click on 'View Filed Returns.'
• Select Assessment Year 2025-26
• Select View Details to see your return and refund status

The screen will show:

• ITR processing status
• Refund status (Issued / Failed / Under processing)
• Date of refund issue and amount (if already released)

Also, check your registered email and the “Messages” section on the portal – the department often sends intimation about discrepancies or the need for revised filing.

Still No Refund? What to Do Next

• Ensure your PAN is linked with Aadhaar
• Validate your bank account on the portal (a pre-validated account is mandatory for refund credit)
• Match TDS figures exactly with Form 26AS/Annual Information Statement
• Respond immediately to any notice under “Pending Actions”, “Response to Outstanding Demand” or e-Proceedings

If everything is correct and still no movement, you can raise a grievance under “Grievances” on the portal or call the CPC helpline at 1800 103 0025.