Budget 2026: What is real-time income tax refund tracking proposed by Deloitte?

To address this, Deloitte India has recommended a real-time refund tracking dashboard on the taxpayer portal in its Union Budget 2026-27 suggestions.

Key features of Deloitte India's proposed real-time tracking system:

Real-Time Tracking Dashboard

A transparent system on the CBDT portal that provides step-by-step updates on refund processing.

Clear Status Indicators

The dashboard would display statuses like ‘Under Processing,’ ‘Approved,’ ‘Sent to Bank,’ and ‘Credited,’ along with estimated timelines.

Escalation Option

A “Raise Concern” button for taxpayers to flag delayed refunds, cutting down on the need for manual follow-ups.

Notifications and Grievance Integration

SMS/email alerts and integration with the grievance system to keep taxpayers informed of any updates.

The Central Board of Direct Taxes (CBDT) has made notable improvements in the timeline for processing tax refunds after returns are filed.

However, taxpayers still lack real-time tracking, which can increase anxiety, especially for larger refunds that haven’t been credited to bank accounts within a month.

As per Deloitte India, this lack of tracking results in:

• Uncertainty and stress about when refunds will arrive.

• An increase in queries and grievances directed to the tax department.

• Challenges in financial planning, particularly for individuals and businesses who depend on timely refunds.

Deloitte India’s additional proposals include simplifying TDS compliance for homebuyers purchasing property from NRIs. For foreign income earners, Deloitte suggests extending the deadline for revised/belated returns to 31 March, helping with accurate foreign tax credit claims.

Another proposal aims to grant foreign employees relief at the point of TDS by allowing employers to apply foreign tax credit based on employee declarations, improving cash flow and reducing large refunds.