If you have claimed a TDS or income‑tax refund for the AY 2025‑26 but you have not received it yet, then this article is for you as it shares a major update from the CBDT Chairman regarding processing and release of refunds.
The CBDT Chairman has stated that the department is actively analysing high value or red flagged claims which are identified by the system, often due to certain deduction claims.
Department is using technology and AI to scrutinise because in previous year, many taxpayers claimed fake deductions, such as bogus donations to political parties and other incorrect deductions, to artificially increase refunds.
In the previous year, many taxpayers claimed fake deductions, such as bogus donations to political parties and other incorrect deductions, to artificially increase refunds, so now the department is using technology and AI to scrutinise such patterns.
Opportunity to Revise Wrong Returns
If a taxpayer knowingly or unknowingly claimed ineligible deduction or exemption by mistake, and your case is stuck or flagged, then correcting it through a revised ITR can help to avoid demand, notices and further delay.
Good News for Low‑Value Refunds
There is positive news for small refund cases - if the refund amount is low, such as around Rs.1,000, Rs.2,000, Rs.5,000 or Rs.10,000, these refunds are generally being released.
Target Date for Releasing Remaining Refunds
The department's goal is to release the remaining refunds by the end of November or during December.
ITR Processing Numbers
What Taxpayers Should Do?
- Check refund status on the Income Tax e-filing portal using your PAN and Password.
- Ensure whether bank account is pre-validated and your ITR is e-verified. Without e-verification, your refund cannot be processed.
- If you filed ITR on or before 15th September 2025, wait some more time because many high‑value refund cases are under detailed analysis.
- For delayed refunds if you have filed the return on time, then you are entitled to get an interest @6% per annum from 1 April 2025 until the date of refund credit; this interest itself will be taxable in your next year's income.
- You can also raise a grievance on the e‑filing portal or you may tag the income‑tax department on social media such as X (Twitter) to highlight your case.
However, there is no need to panic; if your return is correct and filed within due date, the department is working to clear the backlog, and delay will usually be resolved with time.
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