Income Tax Refund Delays: CBDT Says Most Pending Payments Will Be Cleared by December

Income Tax Refund Delays: CBDT Says Most Pending Payments Will Be Cleared by December

NEW DELHI: Taxpayers waiting for their income tax refunds may finally be nearing relief. Central Board of Direct Taxes (CBDT) has clarified that pending refunds are being processed and most legitimate claims are expected to be credited by the end of November or by December.

According to a PTI report, CBDT Chairman Ravi Agrawal said the department is currently in the final stages of examining high-value refund claims and those flagged by automated systems for possible discrepancies.

Speaking at the India International Trade Fair (IITF), he confirmed that low-value refunds have already begun to roll out, while the remaining cases are under detailed review.

ALSO READ:- FinMin Order: Tax Treatment under Unified Pension Scheme with Existing Income Tax Rules for Central Government Employees

Agrawal explained that the slowdown this year is due to a higher number of returns requiring verification. Several claims were marked for suspected wrongful deductions, prompting additional checks before releasing payments.

In many cases, taxpayers were found to have missed reporting certain details, leading the department to send notices asking them to file revised returns for correction.

The CBDT chief noted that the department has detected wrongful or excessive deduction claims, which has contributed to the delays. He emphasized that verification was essential to prevent incorrect refunds from being issued, but assured that the process is close to completion.

Despite the ongoing scrutiny, the overall volume of refunds issued this year has declined. Official data shows that refund disbursal dropped by around 18%, amounting to ₹2.42 lakh crore between April 1 and November 10. Agrawal attributed this decline to fewer refund claims and rationalized TDS rates for the financial year.

The government had earlier extended the deadline for individual income tax returns for FY 2024-25 twice—first from July 31 to September 15, and then to September 16—due to changes in ITR forms and system upgrades.

With CBDT now moving to clear the backlog, taxpayers can expect most pending refunds to be credited within the next few weeks, bringing an end to months of uncertainty.