There is rising worry among taxpayers, both those who have filed and are waiting for refunds, and those yet to file, about delays in income tax refunds for the assessment year 2025–26. Current trends and expert views suggest that ITR checks are tighter this year, not just for current returns but also for old ones.
Normally, people can file their returns from April onwards. But this time, the Income Tax Department released the ITR utilities quite late. The forms for ITR-1 and ITR-4 came out only at the end of May. Forms for ITR-2 and ITR-3 were released even later, in July.
Another reason is the many changes to tax rules this year. The government has made the new tax regime the default and added extra details to the ITR forms. Now, the tax department asks for more information, which means it takes longer to check and approve returns.
On top of this, each return is matched with the Annual Information Statement (AIS) and Form 26AS. If there’s a mismatch or a large refund claim, the system flags it and holds the refund until everything is verified again.
If you have any old tax demands or pending assessments, your new refund can be held back too.
The tax department is allowed to adjust your refund against any old dues. So, if your previous year’s case is still open, this year’s refund may take longer to reach you.
Another issue is that not all ITR forms are available yet. Forms for ITR-5, 6 and 7 have not been released so far. This has forced the government to extend the ITR filing deadline from July 31 to September 15, 2025.
Meanwhile, the good part is, if your refund is delayed beyond the deadline, the tax department has to pay you interest under Section 244A of the Income Tax Act.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)