Income Tax Refund Delay: CBDT Chairman Confirms Refunds Will Be Released by End of November or December

Many taxpayers are still waiting to receive their income tax refunds, and several have been checking the Income Tax portal to understand the reason for the delay. Addressing the concern, Ravi Agrawal, Chairman of the Central Board of Direct Taxes (CBDT), has clarified the situation and explained why some refunds are yet to be processed.

According to Agrawal, a large number of income tax returns (ITRs) appear irregular or unusual, and the Income Tax Department is thoroughly verifying them before releasing refunds. These cases require additional checks to ensure there are no calculation errors, incorrect deduction claims, or invalid filings.

Why Are Some Income Tax Refunds Delayed?

The Income Tax Department has already processed several refunds, but delays are occurring mainly in returns where discrepancies or incomplete details have been found. Common causes include:

• Calculation-related errors

• Wrong or excessive deduction claims

• Deductions claimed after the applicable deadline

• Non-validation of the taxpayer’s bank account

• System-triggered manual verification for high refund amounts

The processing of ITRs is highly automated, but if the system detects unusual numbers or suspicious claims, the return is flagged for manual review, causing additional time.

When Will Pending Refunds Be Released?

CBDT Chairman Ravi Agrawal has assured taxpayers that remaining refunds will be issued by the end of November or by December 2025.
Tax expert Sujit Bangar, Founder of Taxbuddy.com, explained that higher refund amounts often require additional scrutiny, and refunds are released in batches. Therefore, refunds involving large sums may take slightly longer compared to lower refund claims.

What Should Taxpayers Do While Waiting?

Experts advise taxpayers to regularly check the status of their refund on the Income Tax portal. It helps in identifying the reason for the delay and allows timely action.

Key steps to follow:

• Ensure that the bank account is validated on the portal.

• Check for any notifications under the ‘Worklist’ tab, where confirmation requests may appear.

• Validate the correctness of refund claims if requested.

• If notified about incorrect claims, revise the return if necessary.

Taxpayers can also submit complaints or queries through the portal or contact the helpdesk of the Centralized Processing Centre (CPC).

Interest on Refund Delay

Under Section 244A of the Income Tax Act, taxpayers are entitled to interest on delayed refunds. In case of delays beyond the standard timeline, an interest of 0.5% per month is paid on the refund amount until the payment is completed. This ensures fairness and compensation for taxpayers who have fulfilled compliance requirements on time.

Bottom Line

While delays are frustrating, the Income Tax Department is ensuring accuracy and preventing incorrect payouts by scrutinizing questionable returns. With the CBDT confirming upcoming releases, most pending refunds are expected to reach taxpayers’ bank accounts within November or December 2025.

For faster processing, taxpayers should keep their profiles updated, respond to portal alerts, and track their refund status regularly.