Income Tax Refund Delayed: Tax professionals explained the situation regarding refunds in that they have not been denied but rather “put on hold,” and that they will be processed as soon as the mismatch is sorted out.
More and more salary earners who are due refunds for the financial year 2025-26 are witnessing excessive delays in the processing of their income tax returns.
The Income Tax Department has directed that in cases where tax return forms claimed exemptions that were different from salary amounts provided by employers in Form 16, refund processing is typically delayed. The problem has been revealed via emails sent to taxpayers, alerting them that the unusually large refund claims have resulted in the initiation of internal risk assessments.
The mentioned communication has identified a “significant mismatch” between the exemptions claimed in the ITR and the Numbers that have been acquired in Form 16 (Annexure II). The department remarked that such inconsistencies have caused the refund amounts to be overstated, thus leading to the returns being flagged and refunds not being processed until the situation is clarified or until a mismatch is resolved.
Tax experts clarified that refunds have been put on hold, not denied, and will move forward once the mismatch is resolved or explained satisfactorily.
Taxpayers have been advised to verify that the exemptions claimed, such as house rent allowance, leave travel allowance, or other deductions, are completely supported by documents and reflected in the Form 16 issued by the employer. Claims that were made while filing the return but are not supported by Form 16 appear to be one of the major reasons for scrutiny.
The email also includes a warning that non-responsiveness may be interpreted as a case of intended non-compliance, which will raise the chances of the case being selected for a more thorough examination later.
Shubhi is a seasoned content writer with 6 years of experience in digital media. Specializing in news, lifestyle, health, sports, space, optical illusions, and trending topics, she crafts engaging, SEO-friendly content that informs and captivates readers. Passionate about storytelling, Shubhi blends accuracy with creativity to deliver impactful articles across diverse domains.
ITR Delay: Income Tax Refund on Hold? Why Taxpayers Are Getting Alerts For AY 2025–26
ITR Delay: The Income Tax Department has put several AY 2025–26 refunds on hold after…
The annual Andrei Stenin International Press Photo Contest, held in memory of photojournalist Andrei Stenin…
Indian Onion Feels The Heat Of Bangladeshi Crisis, Changing Policies Of The South Asian Neighbours
Bangladesh crisis and India’s onion export bans have hurt Indian exporters as buyers diversified to…
