Income Tax Filing For FY 2024-25: Why Your Tax Refund May Take Longer This Year

For those who have filed their income tax return (ITR) for the financial year (FY) 2024-25, the refunds this year will have to wait. The filing process for this assessment year (AY) 2025-26 started a bit later than usual, only by the end of May, leaving many taxpayers with less time to prepare.

As of now, over 75 lakh returns have been filed, and around 71.1 lakh have been e-verified, but many are beginning to notice a delay on the refund front, and there is a reason for it.

Unlike earlier years when the Income Tax Department regularly updated the number of ITRs processed on its website, that section now sits blank. This lack of visibility has left taxpayers in the dark about where their filings stand. And while some assumed it was a temporary hiccup, it turns out the delays are more deliberate than accidental.

Behind the scenes, the department is taking a closer look at past returns. Tax professionals say that this year, refunds are being held back until the department thoroughly reviews not just the current filing, but older returns as well, particularly if any scrutiny or assessments from previous years are still open. The idea is to weed out fraudulent claims before releasing any refund, a step that is currently fueled by the tax authority’s broader effort to tighten compliance checks.

What this also means is that even the honest and compliant taxpayers who have filed their return on time and have no pending notices may have to wait a bit longer than expected. When the taxman undertakes a blanket approach to closely verify all ITRs, they don’t typically differentiate between compliant and non-compliant filers.

In addition to the anticipation of late refunds, another issue that taxpayers are facing is the absence of a clear update system. Tax experts are of the view that the department should work on offering more transparency with something as basic as a timeline or a brief explanation of the delay. This will help ease the anxiety for lakhs of taxpayers who are currently in a limbo.

So, what can you do in the meantime?

The first important thing to remember is - there’s no need to panic. If your return has been filed correctly and you have submitted accurate information, your refund is unlikely to be denied; it just might take a little longer to arrive.

Second, you should also keep an eye on the status of your filing on the e-filing portal. If needed, you may also review whether there were any assessment notices in earlier years that remain unresolved.

It is worth noting that the government has extended the ITR filing deadline for AY 2025-26 to September 15, 2025, from the original July 31 deadline. This gives non-audit category taxpayers some additional breathing space, but it also means the department has more returns to handle in a shorter period, another factor that might be slowing things down.

In short: Even if you have to wait a little longer, your refunds are coming, just not as fast as before.