Income tax refund delayed after incorrect Section 80G claim: Key takeaways from a case study

An income tax refund brings relief to many taxpayers. It means they have paid more tax than required, and the excess amount is being returned to them by the tax department. Timely filing, accurate details, and proper documentation are crucial in ensuring that the refund is processed without delay.

If a taxpayer claims a refund higher than what they are actually entitled to, the return may be flagged for scrutiny.

"After reviewing the case, we advised the client to correct the return. We then filed a revised ITR, where the incorrect 80G deduction of ₹44,734 was removed as the deduction claimed was fake, and the return was updated with accurate and supported details only. Once the revised return was filed, the return became compliant and the refund issue was addressed," said Abhishek Soni, CEO & Co-founder, Tax2win.

“Initially, when the taxpayer claimed a deduction under Section 80G, the refund amount reflected in the return was ₹33,470. However, after filing a revised income tax return and removing the incorrect 80G deduction, the refund amount was recalculated to ₹18,120," said Abhishek Soni.

This clearly shows how claiming unsupported or incorrect deductions can inflate the refund figure and eventually lead to adjustments once the return is corrected.

What is Section 80G?

Section 80G allows taxpayers to claim a deduction from their total income for donations made to specified charitable institutions, funds, or trusts. The deduction is available to individuals, HUFs, companies, firms, and other entities.

This case highlights how even a small error, such as an incorrect claim under Section 80G, can lead to delays in income tax refunds. So, when you file your ITR for 2026, double-check all deduction details, match them with supporting receipts, and review the final return before submission.