The Central Board of Direct Taxes (CBDT) has confirmed that the ongoing delays in issuing Income Tax Return (ITR) refunds for AY 2024-25 are largely due to "red-flagged" or high-value refund claims currently under scrutiny.
CBDT Chairman Ravi Agrawal stated that while the Income Tax Department is swiftly processing low-value refunds, cases involving large deductions, mismatched data or suspicious anomalies are undergoing detailed verification. This enhanced scrutiny has temporarily slowed the overall refund disbursal pace.
Why ITR Refunds Are Getting Delayed
According to the CBDT, several refund claims raised concerns, including:
- Incorrect or inflated deductions
- Suspicious refund amounts
- Claims not matching third-party data
- Repeated filing discrepancies
Agrawal emphasised that this verification is essential to curb wrongful refunds:
"We found that some wrong deductions and refunds were being claimed. This is a continuous process. We hope to release the remaining refunds by this month or December," he said.
Refunds Drop 18% Due to Stricter Checks
Between April 1 and November 10, 2024, refund distribution fell by nearly 18%, totalling just over Rs 2.42 lakh crore. The decline is directly linked to enhanced compliance checks and the larger number of flagged cases.
What Taxpayers Should Do
Tax experts suggest the following:
- Check refund status regularly on the e-filing portal
- File a revised return if any information was missed
- Keep income proofs, Form 16, bank details and deduction slips ready
- Respond promptly if the Income Tax Department seeks clarifications
Low-value and straightforward claims are expected to be cleared soon, while high-value cases may take a little longer.
CBDT Also Targets Reduction in Pending Appeals
The CBDT Chief added that the department is working "overtime" to reduce tax litigation. Over 40% of pending appeals compared to last year have already been disposed of, marking significant progress in backlog clearance.
Conclusion
While many taxpayers are waiting for their refunds, the CBDT expects most pending cases to be resolved by end-November or December 2024. High-value claims will continue to face stronger verification, ensuring transparency and preventing revenue leakage.
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