Income tax refunds for FY 2024–25 are delayed due to mismatches and errors in returns. The CBDT has urged taxpayers to file revised ITRs by December 31, 2025, as refunds cannot be claimed afterward. Acting before the deadline ensures corrections are processed, preventing financial inconvenience and refund denial.
As the year-end approaches, many taxpayers are still waiting for their income tax refunds, despite filing returns well before the July 31 deadline. The Income Tax Department has clarified that delays are often due to errors, mismatches, or incorrect claims in the original Income Tax Returns (ITRs). To address this, officials have sent emails and SMS alerts urging taxpayers to file revised returns by December 31, 2025.
Key Highlights
Refund Delays: Several taxpayers have reported that refunds remain unprocessed. Common reasons include incorrect bank details, mismatched income declarations, or ineligible deduction claims.
Deadline Importance: December 31, 2025, is the final date for filing both revised and belated ITRs for FY 2024–25. Missing this deadline could mean refunds remain stuck, as updated returns filed afterward will not be eligible for refund claims.
Department Alerts: The Central Board of Direct Taxes (CBDT) has stepped up scrutiny this year, sending intimations to taxpayers whose returns show discrepancies. Those receiving alerts must act quickly to avoid refund denial.
Processing Issues: Refunds are processed only after the taxpayer e-verifies the return. Delays have also been linked to risk assessments at the Centralised Processing Centre (CPC), where flagged mismatches slow down approvals.
Taxpayer Concerns: Frustration is mounting, with some urging the department to extend the December 31 deadline. However, officials have reiterated that the cutoff is firm, making timely action essential.
Context and Impact
The heightened vigilance reflects the government’s push to curb incorrect refund claims and tax evasion. While this ensures greater compliance, it has left genuine taxpayers anxious about delayed payouts. Filing a revised ITR before December 31 is the only way to correct mistakes and secure refunds for FY 2024–25.
Experts advise taxpayers to check refund status online, ensure bank accounts are pre-validated, and promptly respond to department notices. With the deadline just days away, proactive steps can prevent financial inconvenience and ensure smoother processing in the new year.
Sources: Free Press Journal, Livemint, Republic World, Times of India, News18, Goodreturns