Tax Refund: Your tax refund is also stuck, CBDT Chairman told – when will you get the money?

Although the Income Tax Department extended the deadline for filing ITRs this year by 45 days, millions of taxpayers have yet to receive their refunds. Following recent social media concerns, the Chairman of the Central Board of Direct Taxes (CBDT) has now personally addressed the expected date for taxpayers to receive their refunds. The Income Tax Department has also stated that approximately 40% of taxpayers who filed ITRs have received their refunds so far.

Most taxpayers who filed their income tax returns for the financial year 2024-25 have yet to receive their refunds. Many of these taxpayers are regularly checking the Income Tax portal for the reason for the delayed refunds, but are receiving no clear answer. Now, CBDT Chairman Ravi Agarwal has personally addressed the issue. He stated that many ITRs were not filed correctly, and the department is conducting a thorough review of the errors. He claimed that refunds have been issued for more than 40% of returns filed this year.

Some people's money will be released soon.
The CBDT Chairman stated that refunds for some additional taxpayers will be issued soon. However, most refunds are stuck due to errors in ITRs. Some involve calculation issues, while others have incorrect claims. Claims for expenses and deductions filed after the deadline have also been rejected. Furthermore, many taxpayers have not verified their bank accounts. The verification process for most ITRs is automated and requires no intervention. However, if errors are detected, the system automatically rejects refunds.

When will refunds arrive?
The CBDT Chairman stated that despite these difficulties, refunds are not long in coming. Remaining taxpayers should be issued by the end of November or December. The system automatically checks before issuing refunds for large amounts, and this may also cause some delays. Furthermore, according to the Income Tax Department's budget, refunds are often processed in cycles. Obviously, refunds for larger amounts take longer to be issued than smaller ones.

What should taxpayers do if their ITR is delayed?
The CBDT advised taxpayers to regularly check the Income Tax portal to provide timely responses to the reasons for refund delays. Tax refunds are often delayed due to a lack of documentation, bank account verification, and other information. To ensure timely resolution, taxpayers should regularly check their refund status.

Where and how to correct mistakes
According to tax experts, taxpayers will find the reason for their refund being held up in the 'Worklist' tab near the login on the official portal. This will provide information on filing a revised return, including validation, as well as information on incorrect deductions and credits. Taxpayers can also submit their complaints directly to the portal and seek assistance from the CPC helpdesk.

Interest will be charged on delayed refunds.
Under the Income Tax Act, the Income Tax Department also charges interest on any delay in receiving a refund if there is no error in filing the ITR. Under Section 244A of the Income Tax Act, taxpayers are charged interest at the rate of 0.5% per month, or 6% per annum, on the refund amount if they do not receive it within the prescribed time limit. The interest period depends on the nature of the tax payment and the date of filing the return.

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