Several taxpayers across the country have received emails and/or SMS messages from the Income Tax Department, which state that their income tax refunds have been put on hold due to 'mismatches' in their ITR filings. One primary reason behind this issue is the slowdown experienced in the issuance of refunds this year.
In comparison to the same period of last year, the refund payouts between April and September 2025 were significantly lower. Notably, overall direct collections increased in the country. The delays are expected to build up in the system, given the fact that fewer refunds are released and more returns are being filed.
Processing of the return held
According to reports, the message received by taxpayers regarding the pause in refund reads, “Processing of the said return was held as it was identified under the risk management process on account of certain discrepancies in the claim of refund. An email with details has also been sent to your registered email address.”
Another primary reason for the pause is the enhanced security measures implemented by the Income Tax Department. There have been cases of returns that show higher refund claims, particularly under the old tax regime. These cases are undergoing additional checks.
What should taxpayers do?
- Tax experts are of the view that if anyone is facing the issue of delay in getting a refund, he/she should check for mismatches in AIS or Form 26AS.
- The individual is also advised to confirm whether the concerned bank account is pre-validated.
- The taxpayer also needs to ensure that no communication from the department has been missed or ignored.
- In case the return has not been processed for a long time, taxpayers can raise their grievances on the income tax portal.
While refund delays can be frustrating sometimes, it is to be noted that these generally get cleared once the discrepancy or verification issue is solved. Nonetheless, the process is comparatively slow this year; refunds are likely to be issued once the pending issues are addressed.
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