Over the past few days, taxpayers across the nation have been on edge, nervously checking emails and SMS alerts from the Income Tax Department. Why? Because their income tax refunds have suddenly been put on hold due to “discrepancies” in their ITR filings. Social media is buzzing with frustrated voices, as people demand answers and wonder why they weren’t notified earlier. The timing couldn’t be worse, these alerts hit just days before the 31 December 2025 deadline to correct returns. Across the country, accountants, salaried employees, and small business owners alike are double-checking every Form 26AS entry, deduction, and TDS detail, fearing a minor oversight could snowball into a major refund headache.
Calls for an extension are growing louder, and taxpayers are glued to their screens, hoping the risk management flags are just a minor hiccup rather than a full-blown nightmare. The nation waits, refunds, it seems, have never been so suspenseful.
It is only a matter of time before your income tax refund is flagged under risk management and you have to wait. Suraj Singh, the Founder of SD Singh and Associates, says that the time lag may be between a number of weeks up to several months. Exact timelines? Well, that’s anyone’s guess.
In case of discrepancies, the taxing department can proceed with a formal clarification notice, and refunds can be issued only after document-based verification (scrutiny) is done. To taxpayers with eyes glued to their bank accounts, it will be a nail-biting experience, holding on to a treadmill, which is like seeing the sign on your inbox delayed over and over again.
Mismatch between income reported and Form 26AS / AIS / TIS
Non-reporting of capital gains, F&O trades, ESOPs, foreign income/assets
Inflated or questionable deductions (HRA, insurance, donations, etc.)
Not responding to compliance portal queries/intimations
Sale of property not reported under capital gains
High credit card spending/assets purchased/forex expenditure without corresponding income disclosure
Tick-tock! The date to file a revised ITR is set to expire on 31 December 2025, the last day to do so. If you miss this deadline, the only option available to taxpayers will be the ITR-U filing, which will involve additional tax, interest, and penalties—a massive hassle that nobody desires. To make matters worse, ITR-U will not allow adding or removing refund claims, which means a refund that you were legitimately entitled to may get permanently lost.
So what if inaction is your option? The processing of your original return might still happen, but do not feel too safe. The tax department might issue a notice under Section 133(6) demanding verification. If your response is unsatisfactory, you could be under Section 147 scrutiny. It’s a high-stakes game of “check your forms or lose your money,” so make sure you have checked and re-checked every figure, every deduction, and every TDS entry. Look at this as a reminder from a friend: do not allow procrastination to turn your refund into a nightmare!
(With Inputs)
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Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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