The Income Tax Department has informed such taxpayers through SMS and email and asked them to file revised ITR by December 31 so that they can re-examine their returns.
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Income Tax Refunds Complaint: Amidst growing complaints and delays in income tax refunds for the assessment year 2025-26, the Income Tax Department has clarified that many taxpayers have claimed deductions and exemptions in their Income Tax Returns (ITRs) for which they are not eligible, resulting in their refunds being held up. According to the department, cases where the deduction or refund amount exceeds ₹50,000 are being thoroughly investigated to prevent erroneous claims and issue only valid refunds.
Why are refunds stuck?
The Income Tax Department has notified such taxpayers via SMS and email, asking them to file revised ITRs by December 31st so they can re-examine their returns and correct incorrect or ineligible claims. According to the Indian Express report, taxpayers whose refunds are found to be correct may receive the funds in their accounts within the next 10 days.
The department also advised taxpayers to verify the validity of all deductions and exemptions claimed in their ITRs to avoid additional inquiries or notices in the future. It is worth noting that several taxpayers and chartered accountants have complained on social media that their refunds are pending and they have not received any communication from the department.
Increasing Complaints from Taxpayers
According to official data, the refund amount between April 1 and December 17 was 13.52 percent lower than last year, while more than 1.5 million revised ITRs have been filed so far for the assessment year 2025-26.
Furthermore, approximately 2.1 million taxpayers have updated their returns between assessment years 2021-22 and 2024-25, and over ₹2,500 crore in taxes have been deposited so far in the current financial year, indicating that the department is taking strict action against incorrect claims and ensuring timely issuance of correct refunds.
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