This year, a large number of taxpayers have faced unexpected delays in receiving their income tax refunds. Many individuals who filed their returns on time are still waiting for the refund to reflect in their bank accounts. In response to these concerns, the Central Board of Direct Taxes (CBDT) has issued an important clarification. CBDT Chairman Ravi Agarwal has outlined the reasons behind the delay and shared when taxpayers can expect their pending refunds.

Speaking at the inauguration of the Taxpayers’ Lounge during the India International Trade Fair (IITF), Agarwal confirmed that high-value and system-flagged refund claims are in the final stages of verification, and most remaining valid refunds will be released soon. His remarks have offered relief to millions who have been waiting for clarity.

Most Pending Refunds Likely by November-End or December

According to a PTI report, the CBDT Chairman stated that the department has almost completed the scrutiny of claims marked for deeper verification.
He said, “Low-value refunds are being released regularly. During our checks, we found that some taxpayers had claimed incorrect refunds or inaccurate deductions. These cases require careful review. We expect that the remaining refunds will be issued by the end of this month or by December.”

This indicates that taxpayers who are still waiting may receive their refunds within the next few weeks, provided their cases do not require further manual verification.

The CBDT has identified several major issues that have contributed to the delay in processing refunds this year:

Refund claims involving large sums undergo additional verification. Such cases take longer because the department must validate the accuracy of the figures and supporting documents before clearing the refund.

The automated system has flagged many returns where deductions appeared suspicious or inconsistent. These flagged returns are kept on hold until the verification process is completed.

A significant number of taxpayers claimed deductions that did not match their financial data. These cases require manual verification by officers, which increases the overall processing time.

In some cases, CBDT has emailed or notified taxpayers asking them to file a revised return due to missing or incorrect information. Until a revised ITR is filed, processing remains paused.

Even beyond system checks and verification, there are several routine issues that can delay refunds:

– Refunds above ₹1 lakh undergo additional scrutiny.
– Returns involving foreign income, capital gains, or multiple income sources often require manual review.
– Filing a revised return automatically extends the processing timeline.
– If the taxpayer has not e-verified their ITR, it becomes invalid, causing the refund to be withheld.
– Mismatch between Form 26AS/AIS and the ITR can trigger system-level holds.
– Discrepancies between income reported by employers or banks and the taxpayer’s ITR also lead to delays.

Taxpayers who are still waiting for their refunds are advised to:

– Check their AIS, TIS, and Form 26AS thoroughly.
– Ensure there are no mismatches or incorrect entries.
– Confirm that their bank account is pre-validated for receiving refunds.
– Respond promptly to any communication or notice issued by the department.

With CBDT confirming that most pending refunds are expected to be credited by November-end or December, taxpayers can expect resolution soon—unless their cases fall under high-value or discrepancy-related categories requiring additional checks.

This clarification brings much-needed transparency and assures millions of taxpayers that their refunds are on the way.