If you're planning to file your Income Tax Return (ITR) early this year, here's something important you need to know. Despite submitting your return before the due date, there may still be a delay in receiving your income tax refund in the financial year 2024–25. Let's dive into the possible reasons behind this unexpected delay.
Typically, the Income Tax Department begins processing returns shortly after they are filed—especially if done before the deadline of July 31, 2025, for non-audited accounts. Once verified and if no discrepancies are found, the refund is generally credited to the taxpayer's savings account within a few weeks. Early filers often enjoy faster processing and quick refunds.
However, this time around, things may not be so straightforward. Even timely filers might face delays due to a new notice issued by the department.
According to a report by the Economic Times, several taxpayers have received an email from the Income Tax Department, dated March 11, 2025. The message, sent by the Deputy Director of Income Tax, informs taxpayers that their ITRs are yet to be assessed or reassessed. As a result, their refunds are on hold until further review.
This means that even though your return may have been filed correctly, your refund could be delayed, reduced, or possibly withheld depending on the outcome of the assessment.
Tax experts are advising all taxpayers to carefully check their emails from the Income Tax Department. If you have received such a communication, be prepared for possible delays or adjustments in your refund.
On the flip side, if you haven’t received any such email, it likely means your return is clear for normal processing and you can expect your refund without unusual delays.
In some cases, the department may also adjust the refund against previous outstanding tax dues. This is done under Section 245(2) of the Income Tax Act, 1961, which authorizes the department to use the current year’s refund amount to settle past dues.
Importantly, there is no fixed timeline under Section 245 for making such adjustments. This could potentially delay the refund further if dues from previous years are under review.
File your ITR as early as possible, but don’t forget to double-check all the details to avoid mismatches.
Monitor your email inbox for any communication from the Income Tax Department.
Log in to your income tax portal regularly to track the status of your return and refund.
If you’ve received an email regarding assessment or reassessment, consult a tax advisor for professional guidance.
In short, while early filing is still the best strategy, taxpayers should stay alert and informed this year, as refunds might take a little longer than usual to arrive.
