CBDT Announces Date for Pending Income Tax Refunds – Check Details Here

Income Tax Refund: Income tax refunds have been significantly delayed this year, causing concern for many taxpayers. However, there’s good news for taxpayers. The Central Board of Direct Taxes (CBDT) has indicated that pending valid refunds may be issued soon.

CBDT Chairman Ravi Agarwal said the scrutiny of high-value and system-flagged files is in the final stages. Most refunds will be credited this month or by December. “Low-value refunds are being issued. In many cases, incorrect deductions or refund claims have been found, so investigation is necessary. We expect the remaining refunds to be issued this month or by December,” he said.

Why is the refund delayed?

According to CBDT, there is delay in issuing refund due to some specific reasons.
Many refund claims are subject to additional scrutiny due to their high value.
Some returns have been red-flagged by the system on the basis of incorrect or suspicious deductions.
The department found that some taxpayers had claimed incorrect or excessive deductions.
In many cases, the department has also asked taxpayers to file revised returns.

Refund growth declines

CBDT Chairman Aggarwal said that there has been an overall decline in income tax refunds this year. This means that fewer refunds have been issued this year compared to last year. Two major reasons have emerged for this: first, due to changes in TDS rates this year, many individuals received lower tax deductions, preventing them from needing refunds. Second, fewer taxpayers filed refund claims this year. Overall, the lower refund claims and the changed TDS structure are contributing to the lower refund growth.

Change in return deadline

The CBDT extended the return filing deadline this year due to changes to ITR forms and system upgrades. The previous deadline for filing individual ITRs was July 31, but it has now been extended to September 15, 2025. Later, due to technical reasons, it was extended by one day to September 16. This extension was intended to facilitate the smooth filing of returns by all taxpayers using the new system.