return to news
  1. Upstox
    /
  2. News
    /
  3. Personal Finance News
    /
  4. Tax
    /
  5. Income tax refund delayed: CBDT explains why and when money will be credited

Personal Finance News

Income tax refund delayed: CBDT explains why and when money will be credited

Upstox
By Upstox News Desk

2 min read | Updated on November 18, 2025, 07:39 IST

Twitter Page
Linkedin Page
Whatsapp Page

SUMMARY

CBDT Chairman Ravi Agrawal said the department is in the final stages of scrutinising high-value and system-flagged claims, and assured that most remaining refunds are expected to be credited by the end of this month or by December.

income tax refund delayed cbdt

The income tax department has written to certain taxpayers, asking them to file revised returns if they had missed or incorrectly reported details. | Image: Shutterstock

Income tax refunds have been experiencing prolonged delays this year, with many taxpayers still awaiting their payments. In some welcome news for taxpayers who have been anxiously awaiting their income tax refunds, the Central Board of Direct Taxes (CBDT) has indicated that pending legitimate payouts are likely to be released soon.
Open FREE Demat Account within minutes!
Join now
As per a report in PTI, CBDT Chairman Ravi Agrawal said the department is in the final stages of scrutinising high-value and system-flagged claims, and assured that most remaining refunds are expected to be credited by the end of this month or by December.
"Low-value refunds are being released. We have analysed and found that some wrong refunds or deductions were being claimed. So, this is a continuous process. We hope to release the remaining refunds by this month or by December," Agrawal told reporters after he inaugurated a taxpayers' lounge at the ongoing India International Trade Fair (IITF), PTI reported.

Reasons behind the delay in income tax refunds

1.Scrutiny of high-value claims

CBDT Chairman Ravi Agrawal said several refund claims have been flagged as high-value, requiring deeper examination before approval.

2. Red-flagged deductions

Some returns were red-flagged by the system due to suspected wrongful or questionable deductions, prompting additional verification.

3. Wrongful deduction claims detected

The department found instances of incorrect or excessive deduction claims, slowing down the refund process as these cases are being analysed.

4. Requests for revised returns

The department has written to certain taxpayers, asking them to file revised returns if they had missed or incorrectly reported details. "We have also written to the taxpayers to file a revised return in case they have forgotten something," he said.

Negative growth in income tax refunds
Agrawal noted a negative growth in overall refunds, possibly because fewer refund claims were made this year and TDS rates were rationalised.

Refund issuances, as per official data updated till last week, dropped about 18 per cent to over ₹ 2.42 lakh crore between April 1 and November 10.

The CBDT initially extended the deadline for individual returns (FY 2024-25) from July 31 to September 15, 2025, citing changes in ITR forms and system readiness. The date was later further extended by one day to September 16, 2025.

To add Upstox News as your preferred source on Google, Click here
For all personal finance updates, visit here
ELSS
Find the best tax-saver funds for 2025.
promotion image

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

Next Story