India’s income tax season has taken a sharp turn this year. Over 1.16 crore taxpayers have already filed their returns for Assessment Year 2025–26, but a growing number are still waiting on refunds. The Central Board of Direct Taxes (CBDT) extended the ITR deadline for non-audited individuals to September 15, 2025, easing pressure on salaried employees and NRIs. This decision followed delays in utility releases and system upgrades. “To facilitate a smooth and convenient filing experience,” CBDT announced, “the due date has been extended.” Yet, many filers are asking: where is my refund?
Here Is Everything About ITR-
| Scenario | Impact |
|---|---|
| Filing by Sep 15, 2025 | No penalty or interest under Section 234A |
| Filing after Sep 15 | ₹1,000–₹5,000 penalty + 1% monthly interest |
| Large refund claimed | Return flagged, refund delayed |
| Past tax dues | Refund adjusted against outstanding liabilities |
| Refund delayed > 30 days | Interest @ 0.5% per month under Section 244A |
Why ITR Refunds Are Stuck This Year?
Tax experts attribute refund delays to a mix of technical and procedural issues. Utilities for ITR-1 and ITR-4 were released only on May 30, and ITR-2 and ITR-3 followed on July 11. Utilities for ITR-5, 6, and 7 remain unavailable. This compressed the filing window, leading to a late start. Frequent tax law changes across recent budgets added complexity. These include mandatory new tax regime defaults, expanded AIS/26AS disclosures, and tighter rules around mismatches. Taxpayers who filed early with high refund claims are more likely to get flagged and delayed.
What Happens When ITR Refunds Get Flagged?
Ever felt like your refund’s gone on a silent retreat? It might’ve been flagged. When your ITR claims a chunky or “unusual” refund, the system throws up a red flag faster than you can say “Form 26AS.” As CA (Dr.) Suresh Surana puts it, “Once flagged, the system doesn’t release refunds until complete rechecking is done.” Translation: your money’s on pause. Why? The tax department’s bots are on high alert this year, scanning for any mismatch between your return, AIS, or 26AS. Even if your claim is legit, a small inconsistency can send it into verification limbo. So if your refund’s playing hide-and-seek, now you know who started the game.
Even if your current return looks clean, pending assessments or tax demands from previous years can hold up your refund. The Income Tax Department has the authority to adjust current-year refunds against any outstanding liabilities. Many taxpayers remain unaware of such dues until their refunds disappear. Dr. Surana confirms, “The Income Tax Department is authorised to adjust current year refunds against past dues.” Taxpayers must check their dashboard for pending demands or communications to avoid surprises.
Track Your Refund Like a Pro: Step-by-Step
- If you have filed and e-verified your return but haven’t received your refund in 4–5 weeks, take action.
- Log in to the Income Tax e-filing portal(www.incometax.gov.in)
- Go to “View Filed Returns” or check “Refund/Demand Status.”
- Ensure your bank account is pre-validated and correctly linked to the portal.
- Use the “e-Nivaran” facility to raise a complaint online.
- For unresolved issues, contact the Centralised Processing Centre (CPC) or your jurisdictional assessing officer.
- Refunds delayed beyond the stipulated period attract 0.5% monthly interest under Section 244A of the Income Tax Act.
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