ITR: The biggest question on the minds of millions of people waiting for their income tax refunds is why they haven’t yet been credited to their accounts. It’s natural to worry when the money doesn’t arrive even after completing e-filing.
Addressing this concern, CBDT Chairman Ravi Agarwal explained that the real reason behind this delay is the intensive scrutiny of certain types of returns, which the system has paid special attention to.
Extended Refund Processing Time Due to Scrutiny of High-Value and High-Risk Claims
| Category | Verification Status | Reason for Delay | Expected Refund Timeline |
|---|---|---|---|
| Normal Returns | Completed / In Progress | No high-risk deductions | Usually within 15 to 45 days |
| High-Value Refunds | Under Deep Scrutiny | Large refund amounts claimed | 45 to 90 days or more (case-based) |
| Red-Flagged Deductions | Manual + System Checks | Suspicious deductions, mismatched income | Depends on verification & response |
| Business Taxpayers | Partial Scrutiny | Multi-deduction and loss claims | 60 to 120 days (approx.) |
| Updated Returns (ITR-U) | Extra Verification | Claim revised after filing deadline | Longer than normal ITR processing |
| Non-Responsive Taxpayers | On Hold | Documents not submitted or late response | Until compliance completed |
According to the CBDT Chairman, this year the system has categorized some tax returns as high-risk or red-flag, where high-value deductions, unexpectedly high refund claims, or suspicious transactions have been identified.
Refunds cannot be issued without thorough investigation in such cases, so manual and digital verification is underway. This additional scrutiny is expected to cause delays in the refund process.
Not all refunds are blocked, only selected returns are undergoing additional scrutiny
The CBDT has clarified that delays in refunds do not necessarily indicate a problem or error. Most taxpayers’ refunds have already been processed, and only those returns that the system has selected for additional verification are on hold.
This means that if your refund hasn’t yet arrived, it doesn’t mean the claim is incorrect; it’s simply part of a security check. Once the scrutiny is complete, the refund issuance process will proceed.
Taxpayers should not panic; they should check their status regularly
The CBDT has advised those whose refunds haven’t yet arrived to understand the situation and remain patient instead of panicking or repeatedly refreshing the portal.
If the refund status appears as “Under Verification” or “Refund Determination Pending,” this is normal. Additionally, monitor e-filing portal updates, emails, and notices in your inbox, as timely response to requested information can expedite the refund process.
Protecting honest taxpayers is a top priority, and strict measures
In recent years, there has been a surge in cases of incorrect deductions and fraudulent refund claims, leading the department to further strengthen the verification system.
This delay is aimed at ensuring transparency and security of the tax system, ensuring no loss of government revenue and the protection of honest taxpayers. This entire process is designed to build trust, not harass taxpayers.
Refunds may be delayed, but they will be disbursed after proper verification
The core message from the CBDT is that if you have filed your taxes honestly and your claim is genuine, your refund will not be withheld under any circumstances.
However, the verification of high-risk claims is taking some additional time, which enhances the robustness of the system. So, there’s no need to worry; refunds will be issued as soon as the investigation is complete, and taxpayers will receive their full refund.
FAQs: ITR 2025 Refund Delays
Q1: Why are some ITR 2025 refunds delayed?
A1: High-value or red-flagged deductions are under extra verification checks.
Q2: How long will high-value refund processing take?
A2: Usually between 45 to 90 days, depending on verification.
Q3: Are normal refunds affected by this delay?
A3: No, regular refunds without red flags process faster.
Q4: What should taxpayers do if their refund is delayed?
A4: Submit required documents promptly and track refund status online.
Q5: Will delays impact future tax filings?
A5: No, filing of future returns continues unaffected by delays.
Disclaimer: This article is for informational and awareness purposes only. All rules, deadlines, and decisions related to the income tax refund and verification process fall under the jurisdiction of the CBDT and the Government of India. For any tax-related questions or advice, seek guidance from an authorized tax advisor or the official Income Tax portal.
