ITR Refund Status 2025: Delays Due to ‘Red-Flagged’ claims, according to CBDT Chairman
On Monday, the Chairman of the Central Board of Direct Taxes (CBDT) said the Income Tax Department is analysing certain refund claims, mainly those identified as ‘high-value’ or red-flagged due to claims of specific deductions. This process has caused a short-term delay in issuing refunds, though legitimate payouts are expected by the end of the year.
Upon asking about the delay, Agarwal said, “We have also written to the taxpayers to file a revised return in case they have forgotten something.
Low-Value Refunds Released, System Under Review
He further confirmed that refunds for low-value claims are being released. “Low-value refunds are being released. We have analysed and found that some wrong refunds or deductions were being claimed. So, this is a continuous process. We hope to release the remaining refunds by this month or by December,” he told reporters after inaugurating a taxpayers’ lounge at the India International Trade Fair (IITF).
The chairman highlighted a ‘negative growth’ in refunds, attributing it partly to a reduction in claims even after TDS rates were rationalised. According to official data, refund issuances have dipped by about 18 percent, to over Rs 2.42 crore, between April 1 and November 10.
Focus on Bringing Down Litigation in Direct Tax Cases
He also highlighted the steps taken to reduce litigation related to direct taxes. “We have taken a lot of steps and our appellate authorities are working overtime to ensure that the pendency is liquidated. During prior years..because of Covid etc.., pendency got accumulated, but I may share that this year more than 40 per cent, as compared to last year, disposal has been done in appeals, and I think we will end the year with a much, much higher number of appeals disposed of,” he added.
The CBDT chief reiterated that the aforementioned steps are aimed at ensuring smoother refund processes and reducing delays for genuine taxpayers.
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