ITR Refund Delay Explained: Income Tax Department Shares New Timeline, Most Payments Likely by December
The delay in ITR refunds has become a major concern for taxpayers across India. With millions waiting for their refunds to be credited, the Income Tax Department has finally clarified the situation and released an updated timeline. According to officials, the delay is not due to system errors or technical glitches. Instead, it is the result of an extensive verification process required for high-value refund claims. The department has assured taxpayers that most pending refunds are expected to be released by the end of November or December 2025.
Why Are ITR Refunds Getting Delayed?
A recent report in Mint quoted CBDT Chairman Ravi Agrawal, who explained that the refund process is ongoing and smaller refund amounts are being cleared without delay. The department continues to process low-value claims on a routine basis, ensuring that taxpayers facing minor refund amounts are not affected.
However, the situation is different for high-value refund cases. Claims flagged as “red-flagged” by the system undergo detailed scrutiny. According to the department, several such cases have shown discrepancies such as incorrect deductions, inaccurate claims, or suspicious entries. These inconsistencies demand additional verification before refunds can be approved. The aim is to prevent wrongful or inflated refunds from being processed.
In many instances, the department has advised taxpayers to file revised returns to correct inconsistencies. This step is meant to reduce future disputes and ensure that refunds are accurate and justified.
When Will Taxpayers Receive Their Pending Refunds?
Chairman Agrawal reassured that the verification of high-value claims is a continuous process but emphasized that most pending refunds will be released soon. The department is committed to processing refunds responsibly while avoiding any wrongful payments. He stated that the majority of remaining refunds are likely to be credited either by the end of November or sometime in December 2025.
Data shared by the Income Tax Department indicates that there has been an 18% decline in total refunds issued between April and 10 November 2025. This drop is directly linked to the increased time required to assess large refund claims flagged for review. Despite this temporary slowdown, the department maintains that taxpayers have no reason to worry, as all legitimate refunds will be issued after due verification.
Strong Performance in Direct Tax Collection
While there is a slowdown in refund processing, India’s direct tax collection continues to show strong momentum. From April to November 2025, direct tax receipts grew by 6.99%, reaching over ₹12.92 lakh crore. This robust growth places the government on track to achieve its financial year 2025–26 collection target of ₹25.20 lakh crore.
The department credited this growth partly to improved corporate tax collection and the slower pace of refunds. Fewer outflows due to pending high-value refunds have contributed to stronger net revenue figures.
What This Means for Taxpayers
For taxpayers still waiting for their refund, the key message from the Income Tax Department is patience. The delay is procedural—not technical—and ensures that refunds are issued accurately. High-value cases require additional verification to prevent errors or fraudulent claims. Most pending refunds are expected to be credited within the next few weeks, bringing relief to millions who have been waiting.
If you have received a notice to file a revised return or provide additional information, it is advisable to respond promptly to avoid further delays. Accurate and timely compliance can help expedite the refund process.
Taxpayers can also track the status of their ITR refund online through the Income Tax portal or the NSDL refund status page.
As the department intensifies its verification process while maintaining consistent growth in direct tax collection, the overall tax ecosystem continues to move toward greater transparency and efficiency.
