The delay in income tax refunds has become a major concern for millions of taxpayers, even as many others have already received their dues.

Addressing these concerns, CBDT (Central Board of Direct Taxes) Chairman Ravi Agarwal has clarified that the department is currently investigating “high-value” and “red-flagged” refund claims due to suspected incorrect deductions.

He assured that low-value refunds are already being processed, and all remaining refunds are expected to be issued by November or, at the latest, December.

Why refunds getting delayed?

At the India International Trade Fair (IITF) held at Bharat Mandapam, New Delhi, the Chairman of CBDT shared that there have been refund claims which have raised alarms because of suspicious deductions or mismatches. This has made prices soar, even though the critics argue that the evidence just isn’t there-or is inaccurate.

Refunds flagged for re-examination are typically associated with:

• Deductions under Section 80C or 80D claimed incorrectly.
• HRA (House Rent Allowance) claims that are not true.
• Entries related to the capital gains exemption that are incorrectly reported.
• Discrepancies in TDS (Tax Deducted at Source).
• Claims made and accepted without having proper evidence.

For such taxpayers, the department has already issued emails and notices instructing them to file revised returns.

In addition to false assertions, several refunds are delayed because of taxpayer’s technical or verification problems. These are:

• Bank account not validated beforehand
• Wrong or outdated IFSC code
• Mismatch between the name on the bank records and PAN
• Incorrect account number
• Bank account that has been closed or inactive
• ITR classified as a Defective Return

Taxpayers can check their refund status within minutes through the Income Tax e-Filing portal.
Steps:

1. Visit the e-Filing portal (https://www.incometax.gov.in)
2. User ID (PAN) and password should be used to login
3. e-File > Income Tax Returns > View Filed Returns
4. Choose the Assessment Year and then click “View Details”

The users have an opportunity to monitor the ITR Processing Life Cycle, which indicates the exact stage of return processing and if any notice has been sent out.

• Refund Issued: Amount has been sent to your bank.
• Refund Partially Adjusted: Part of your refund has been used to settle outstanding tax dues.
• Full Refund Adjusted: The entire refund has been adjusted against pending tax liabilities.
• Refund Failed: Bank account details are incorrect or not validated.

With the CBDT assuring completion of all pending refunds by December, taxpayers are advised to correct errors, verify bank details, and promptly respond to departmental notices to ensure faster processing.