Delayed Income Tax Refunds? Here's when you can expect the payouts

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If you are still waiting for the Income Tax refunds, CBDT chief has a welcome news. According to Ravi Agrawal, Chairman, CBDT,  the payouts are likely to be rolled out by December 2025. The remark comes when many taxpayers are awaiting IT refunds which are delayed. According to the Income Tax Department's website over 7.57 crore Income Tax Returns (ITRs) were filed for the Assessment Year (AY) 2025-26 as of September 23, 2025.

Further, explaining the cause of delay in releasing the refund, Agrawal said the tax department is undertaking an analysis of wrongful deductions claimed in certain cases, leading to a delay in issuance of refunds, and legitimate payouts are expected by December.

"The department was analysing some of the refund claims which were identified as "high-value" or were "red-flagged" by the system due to claims of certain deductions", PTI quoted CBDT chief as saying.

"We have also written to the taxpayers to file a revised return in case they have forgotten something," he said, while speaking to reporters on the sidelines of an event held at the Bharat Mandapam here.

"Low-value refunds are being released. We have analysed and found that some wrong refunds or deductions were being claimed. So, this is a continuous process. We hope to release the remaining refunds by this month or by December," Agrawal told reporters after he inaugurated a taxpayers' lounge at the ongoing India International Trade Fair (IITF).

Agrawal said a "negative growth" was being seen in refunds, maybe because refund claims have also gone down, even as TDS (Tax Deducted at Source) rates were rationalised.

Refund issuances, as per official data updated till last week, dropped about 18 per cent to over Rs 2.42 lakh crore between April 1 and November 10.

Agrawal also said the department and the Board were working to reduce litigation vis-a-vis direct tax cases.

"We have taken a lot of steps and our appellate authorities are working overtime to ensure that the pendency is liquidated.

"During prior years...because of Covid etc., pendency got accumulated, but I may share that this year more than 40 per cent, as compared to last year, disposal has been done in appeals and I think we will end the year with a much, much higher number of appeals disposed of," the CBDT Chairman said.

With PTI Inputs