Waiting for income tax refund as December nears end? CBDT flags ITR mismatches

As December is about to end, many taxpayers are still waiting for their income tax refunds, despite assurances from the Central Board of Direct Taxes (CBDT) that most refunds would be cleared by the end of the month. While refunds are being issued in batches, a large number of returns remain under processing or verification, leading to delays.

The CBDT highlighted that this initiative follows a trust-first approach, allowing taxpayers to voluntarily correct genuine mistakes and avoid further scrutiny. During FY 2025-26, over 21 lakh taxpayers have already updated their returns for earlier assessment years and paid more than ₹2,500 crore in taxes. Additionally, more than 15 lakh ITRs have been revised for the current assessment year so far.

Commenting on the situation, Abhishek Soni, CEO & Co-founder of Tax2win, said that while refunds are expected to be cleared in batches by the end of December, not everyone may receive them immediately. “If your ITR is processed correctly, the refund should come soon. Otherwise, it may get delayed due to verification checks or mismatches,” he said.

He also cautioned taxpayers to stay alert, as the Income Tax Department has started issuing notices for discrepancies in returns. “Taxpayers should check their refund status and review their ITR details carefully. If any error or missing information is found, revising the return before December 31, 2025, can help avoid further delays and speed up the refund,” Soni added.

The CBDT clarified that taxpayers whose claims are genuine and correctly made do not need to take any action. However, those who miss the December 31 deadline will still have the option to file an updated return from January 1, 2026, subject to payment of additional tax as per the law.