No ITR refunds yet? Income Tax Department will first investigate your records for AY 2025-26! Here's why...
The income tax return (ITR) filing season for Assessment Year (AY) 2025–26 began in late May 2025, and over 75 lakh returns have already been filed. Out of these, more than 71.1 lakh ITRs have been e-verified, according to the Income Tax Department. However, the processing of returns appears to be slower than usual, and many taxpayers are still awaiting refunds.
Refunds May Take Longer This Year
Tax experts suggest that refunds are likely to be issued only after detailed scrutiny of past tax filings. The department is reportedly reviewing assessment orders and previously filed returns before initiating any refund. According to Financial Express, This delay is part of a broader strategy to curb fraudulent refund claims. If any scrutiny or assessment is pending for previous years, the department is withholding refunds for the current year.
Delay May Impact Timely Filers
The delay in issuing refunds may affect even those taxpayers who have consistently filed their returns on time and have no ongoing assessments. Many of them are now expressing concern over the status of their refunds. A senior tax consultant stated that a more transparent system is needed. Taxpayers should be informed about the reasons for delays and when they can expect their refunds. At present, the lack of communication is adding to the confusion.
Filing Season Started Late
This year’s ITR filing process began nearly a month later than usual, at the end of May. As of now:
- Over 75 lakh ITRs have been filed,
- Around 71.1 lakh have been e-verified,
- The status of ITR processing is no longer visible on the department’s website,
- Refunds will be processed only after reviewing past records.
What Should Taxpayers Do?
Experts advise taxpayers not to panic. If returns have been filed accurately and completely, refunds will be processed—though with some delay. Taxpayers are encouraged to:
- Regularly check the status of their return and refund on the income tax portal,
- Review any previous assessment notices and ensure all queries have been resolved.
Deadline Extended to 15 September 2025
To give taxpayers additional time, especially those in the non-audit category, the Income Tax Department extended the ITR filing deadline to 15 September 2025, from the earlier date of 31 July.
Bottom Line
Delays in refund processing this year appear to be part of a targeted effort by tax authorities to ensure compliance and prevent fraudulent claims. Honest taxpayers are advised to stay patient and monitor their return status regularly.
)
)
)
)
)