As the 2025 income tax filing season rolls on, a large number of taxpayers across India are expressing concern about one thing above all else the delay in receiving their expected tax refunds. With over one crore returns already filed and most of them verified, it is unusual for so many refunds to be pending this late into the season. What is causing the delay and should taxpayers be worried?
One of the primary reasons is the late start to the tax filing process this year. Unlike previous years when ITR utilities were released by April, the first set of utilities for ITR 1 and ITR 4 only came out on May 30. The utilities for ITR 2 and ITR 3 were released much later, in mid July. This delay in releasing the necessary tools to file returns slowed down the entire process. Taxpayers could not begin filing early, and naturally, refunds are also taking longer to process.
Adding to this, the last couple of budgets have introduced several changes in tax rules. From making the new tax regime the default to technical adjustments in return formats and disclosures, taxpayers are now required to share more information in their returns than before. The Annual Information Statement and Form 26AS have also become more detailed, which means the Income Tax Department is taking more time to match submitted data with information collected from other sources. Any mismatch results in the return being flagged for verification.
Experts say that the government is placing extra scrutiny on refunds that appear unusually high. If your return includes a large refund claim that does not align with your previous financial records, your filing may get marked for further checking. This does not mean something is wrong, but it can delay the refund until everything is clarified. Additionally, if you have an unresolved tax assessment or demand from a previous year, your current refund may be put on hold until the past issue is cleared.
In many cases, these delays are beyond the control of individual taxpayers. Some of the income tax forms such as ITR 5, 6, and 7 have still not been released. This means business entities and certain professionals are not even able to begin filing yet. The government has extended the filing deadline to September 15 for these categories, but for many individual taxpayers who have already filed, the refund wait continues.
What should you do if your refund has not come through? If your ITR is already filed and verified and you have waited more than four to five weeks, you can check the refund status on the Income Tax e filing portal under the “View Filed Returns” or “Refund or Demand Status” section. Make sure your bank account is pre validated and correctly linked.
If all seems in order and the refund is still missing, you can file a complaint using the “e Nivaran” facility on the portal. For unresolved cases, it might be necessary to escalate the matter to the Central Processing Centre or your local assessing officer.
There is a silver lining. The Income Tax Act provides a clause under Section 244A that ensures taxpayers receive interest on delayed refunds. So while the wait may be frustrating, the tax department is obligated to compensate you for the delay once the refund is processed.
In conclusion, while this year has seen more procedural hurdles and systemic changes in the tax filing process, the delays in refunds are rooted in administrative and compliance shifts. From postponed ITR utility releases to stricter data matching and legacy assessments, these complications are creating a backlog. The best course of action for taxpayers is to remain informed, regularly check the status of their filings, and be patient as the system catches up.
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