ITR refund delays 2025 due to red-flagged claims, says CBDT chairman

Refund scrutiny and timelines  
The CBDT is closely examining refund claims identified as red-flagged, often due to suspected wrongful deductions, mismatches with third-party data, or anomalies in filings. This has temporarily slowed down disbursal of refunds. The chairman clarified that low-value refunds continue to be processed, while legitimate high-value claims are likely to be settled by December.  

The department is also focusing on improving compliance and transparency. Agrawal highlighted that appeals disposal has accelerated, with pendency reduced significantly compared to last year. He further noted that rules and ITR forms aligned with the upcoming Income Tax Bill 2025 are expected to be ready by January, ensuring smoother filing processes in the future.  

Major takeaways  

• Refund delays linked to red-flagged and high-value claims under scrutiny  
• Low-value refunds continue to be processed without disruption  
• Legitimate high-value refunds expected by December 2025  
• Appeals disposal up by over 40 percent, reducing backlog  
• Rules and ITR forms for Income Tax Bill 2025 to be ready by January  

Sources: Financial Express, CNBC-TV18, Economic Times