More than 1.16 crore income tax returns have been filed so far for the assessment year 2025–26, out of which 1.09 crore returns have also been verified, according to the Income Tax Department. However, these numbers could have been much higher had the tax department started the ITR filing process on time — like in previous years — in the beginning of April. In fact, the tax filing process this year began with almost a two-month delay, starting only at the end of May when the department released the necessary utilities for ITR-1 and ITR-4.
Meanwhile, there have been growing concerns among taxpayers — both those who have already filed their returns and are waiting for refunds, and those who are yet to file — regarding income tax refunds for the assessment year 2025–26. Based on current trends and expert opinions, scrutiny of ITRs appears to be more stringent this year, not just for current filings but also for returns from previous years.
Naturally, this has left many taxpayers anxious about whether they will receive their refunds on time or face scrutiny before the refunds are processed. We spoke to a taxation expert to understand why the Income Tax Department is likely withholding refunds and the possible reasons behind the stricter assessment of ITRs from now on.
Major reasons behind the delay in tax refund
CA (Dr.) Suresh Surana explains that there are many reasons behind the delay in tax refund this time-both technical and procedural.
“First of all, this time the ITR filing itself started late because ITR utilities were released late,” he said.
“The utility of ITR-1 and ITR-4 came on May 30, while the utility of ITR-2 and ITR-3 was released on July 11. This caused delay in filing returns by taxpayers and the processing time also got delayed.”
Process also got complicated due to major changes in the rules
It is worth noting that in the last one year, many major announcements and changes related to income tax have been made.
While the new tax regime was made the default in the July 2023 Budget, the July 2024 budget and February 2025 Budget also saw some technical changes.
Apart from all this, the Finance Ministry and CBDT made several changes to the rules throughout the year —demanding new information in ITR forms, expanding AIS/26AS, and making the process of matching tax credits more stringent.
All these things have had a direct impact on this year’s return filing process.
Also read: Is tax refund getting delayed? Know how to track, lodge complaint and get quick payment
Utilities for only 4 ITR forms released so far
While all ITR forms and utilities used to be available in April-May every year, this year only utilities for ITR-1, 2, 3 and 4 have been released so far.
Utilities for ITR-5, 6 and 7 have not been released yet, leaving these categories of filers still waiting.
For this reason, the government had to extend the deadline for filing ITR from July 31 to September 15, 2025.
Delay in data matching with AIS and Form 26AS
According to Dr. Surana, this year the Income Tax Department is deeply matching the data of returns with third party sources such as AIS and Form 26AS. If any mismatch is seen in the return or excessive refund has been claimed in any return, the system ‘flags’ them.
“In such cases, the refund is not issued until all the information is rechecked,” he said.
If the assessment of previous years is pending, the refund will also be stopped
Another big reason is the pendency of old tax cases. Dr. Surana explains: “If the assessment or tax demand of a taxpayer of previous years is pending, then the Income Tax Department has the right to adjust or withhold the refund of the current year.”
In cases where returns are flagged for potential mismatches or unusually large refund claims, refunds may be withheld for further verification, he adds.
This is causing trouble especially for those taxpayers whose old cases are not yet settled.
How to check refund status and lodge complaint?
If you have filed your ITR and have also completed e-verification, but have not received refund within 4–5 weeks, then you can know the status in these ways:
Check the refund status by going to the “View Filed Returns” or “Refund/Demand Status” section on the portal.
Ensure that your bank account is pre-validated and linked to the e-filing portal.
Complaints regarding delay in refund can be made through the “e-Nivaran” facility.
If still not resolved, the matter can be sent to CPC or your jurisdictional assessing officer.
If there is a delay, interest will also be paid
Although taxpayers may face inconvenience in this process, the good thing is that under Section 244A of the Income Tax Act, there is also a provision to pay interest to taxpayers if the refund is delayed from the stipulated time.
Summing up…
This year, some taxpayers may face delay in getting refund, but there are many valid and procedural reasons behind it. Many changes in income tax laws, delay in ITR utilities, and pendency of old cases have made this process challenging. According to experts, taxpayers need to be patient and also keep checking their refund status from time to time.