Tax Refund: Why is your income tax refund stuck? The CBDT chief himself revealed the real reason for the delay...

If you've been waiting for your income tax refund for weeks and checking the portal daily, you're not alone. Millions of taxpayers are experiencing refund delays this time. People are also asking the same question on social media: Why are refunds so delayed?

Now, CBDT Chief Ravi Agarwal himself has revealed the real reason for this delay and clarified when you can expect to receive your money. If you work on a salary or file your ITR every year, this update is crucial for you.

High-value and suspicious claims are being rigorously scrutinized.
The CBDT Chief explained that this time, returns with large refund amounts or those with unusual deductions have been red-flagged by the system. The details of such cases are being thoroughly investigated to prevent fraudulent claims. This is why the refund process appears to be slow.

This means that if your return contains any unusual deductions, data mismatches, or a large refund, your case will be cleared slightly later.

Small-amount refunds issued without delay
Ravi Agarwal also clarified that small-amount refunds have been issued almost without delay. Most small refunds have already been cleared. However, the department is conducting more scrutiny of large refunds to prevent erroneous claims.

When will you receive your refund? CBDT reveals timeline
The CBDT chief says that the department aims to clear all normal refunds by the end of this month or by December. This means that most taxpayers should receive their money by December, provided there are no errors in their returns.

Why is there a decline in refunds this year?
Refunds declined by approximately 18 percent between April 1 and November 10 this year. The total refund amount was around ₹2.42 lakh crore. This decline is also due to lower TDS claims due to many individuals.

The CBDT Chief also stated that a large backlog of appeals had built up after COVID-19. However, this year, 40 percent more appeals have been resolved than before. The department's focus is to clear as many pending cases as possible to speed up both refunds and processing.

Good News for Taxpayers
The CBDT Chief stated that the department is striving to ensure that honest taxpayers receive refunds quickly and only those cases that indicate irregularities are withheld. As soon as the cases withheld for investigation are cleared, the refund process will speed up.

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