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ITR For AY 2025-26: Why Your Tax Refund Might Get Delayed This Year

If your return is honest and your paperwork is in place, there’s no need to panic — just be patient, stay alert to any communication from the department, and keep tracking your tax refund status online

Why Your Tax Refund Might Get Delayed This Year Photo: AI

As the deadline for filing the income tax return (ITR) for assessment year (AY 2025-26) draws closer, many taxpayers who have already submitted their returns are growing anxious, not because they made errors, but because their expected refunds are yet to arrive. If you are one of them, there’s a good chance your return has been flagged for closer inspection by the tax department, according to recent media reports.

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In recent years, the Income Tax Department has sharpened its focus on returns that seem a little “off.” If you have claimed a refund that appears larger than what’s typical for your income level, or if there’s a noticeable jump compared to your previous filings, the system is likely to pick up on it. These returns are usually routed for further checks, and until that’s done, refunds are kept on hold.

It’s not just this year’s return that matters. If you have unresolved tax issues from earlier assessment years — like mismatches in income details, pending responses to notices, or an old demand still lingering in the system — your current refund could be adjusted against those dues. In some cases, refunds may even be blocked altogether until past matters are cleared up.

There’s another reason things are moving slower this time around: not all ITR forms were released on time. Also, ITR-2 and ITR-3 Excel utilities finally arrived, after a long wait. 

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What Can You Do If You Are Stuck Waiting

First, log in to the income tax e-filing portal and check the status of your return. You will find this under the “View Filed Returns” section. Make sure your bank account is correctly linked and pre-validated — a mismatch here is a common reason refunds bounce or get stuck. If everything looks correct, but you are still waiting, consider filing a grievance through the e-Nivaran system on the same portal.

Now for some good news: if your refund is delayed and it’s not your fault, the government owes you interest on the amount, under Section 244A of the Income-tax Act, 1961.

This tax season, scrutiny is tight and systems are more automated than ever. If your return is honest and your paperwork is in place, there’s no need to panic — just be patient, stay alert to any communication from the department, and keep tracking your status online. The money may take time, but if it’s due, it will come.

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