Income tax refunds are considered the most stressful part of tax season every year. Millions of people, from salaried employees to small businesses, freelancers, and senior citizens, wait patiently for their refunds after filing their returns. According to the latest data, a total of 82.1 million ITRs have been filed as of November 26, 2025, of which 81 million have been verified. However, only 69.8 million returns have been processed. This means that 11.1 million tax filers are still waiting for their refunds. This gap has further fueled the demand for a real-time tracking feature.

A major suggestion for Budget 2026: A real-time tracker is essential
In its pre-Budget 2026 recommendations, Deloitte India strongly recommended implementing a "real-time refund tracking system" on the income tax portal. Currently, the statuses displayed on the portal, such as 'processed', 'under verification', 'sent to bank', or 'on hold', do not resolve taxpayers' confusion. When a refund is stuck, it is unclear at what stage the case is, when it will be resolved, or whether any additional documentation is required. Deloitte has suggested that the refund tracker should be similar to the one displayed in courier tracking—step-by-step, clear, and timely.

Taxpayers' top demands: transparency, timelines, and easy complaint resolution.
In recent months, the CBDT Chairman acknowledged that some high-value or red-flagged refund cases are being delayed due to additional scrutiny. However, the problem for ordinary taxpayers is not just the delay, but the lack of information. The live tracker will help them understand the stage of their refund, how long it will take, and whether any action is required. According to Deloitte, this will automatically eliminate 70% of complaints. Additionally, the integration of an 'escalate issue' button, SMS-email alerts, and a complaint system into the portal could make it completely user-friendly.

Why this feature will be a game-changer
Real-time tracking will reduce taxpayer anxiety, unnecessary panic, and rumors spread on social media. This will reduce helpline calls and complaints, benefiting both the department and taxpayers. Importantly, this feature already exists in countries like the US and UK, so implementing it in India is not difficult. Deloitte has also called for reducing the complexity of TDS on NRI property transactions, where buyers currently face complexities ranging from TAN numbers to high TDS and lengthy procedures.

Disclaimer: This content has been sourced and edited from News 18 hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.