The Central Board of Direct Taxes (CBDT) has said that some income-tax refunds for 2025 are getting delayed because certain claims are being closely reviewed.
These include high-value refunds and cases flagged for unusual or incorrect deductions. However, the department has assured that
CBDT Chairman Ravi Agrawal said the tax department is carefully checking some returns where deductions or claims appear unusual. These cases have been “red flagged” for further analysis.
He explained that taxpayers have also been asked to file revised returns if they missed adding important details.
Agrawal clarified that refunds involving smaller amounts are being processed without delay. He said the department found several incorrect claims during their analysis, which required deeper checks.
According to him, the aim is to complete the pending refunds by the end of this month or by December.
Official figures show that refunds dropped by about 18% to over Rs 2.42 lakh crore between April 1 and November 10 this year. This decline is partly because refund claims have gone down even after TDS rates were eased.
The CBDT chief also said the department is working to clear pending appeals. He noted that a large backlog had built up during the Covid years, but this year the pace of disposal has improved.
According to Agrawal, more than 40% more appeals have been settled this year compared to last year, and the department expects to close many more cases before the year ends.
Agrawal stressed that all these measures are meant to make the refund process smoother and quicker for honest taxpayers. The department hopes that once the flagged cases are cleared, refund delays will reduce significantly.