Why your tax refund may be delayed this year

One big reason for the delay is that the tax filing season began late this year. Normally, people can file their returns from April onwards. But this time, the Income Tax Department released the ITR utilities quite late.

Current trends and expert views suggest that ITR checks are tighter this year, not just for current returns but also for old ones.

LATE START TO ITR FILING

One big reason for the delay is that the tax filing season began late this year. 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.

NEW RULES ADDED TO THE CONFUSION

Another reason is the many changes to tax rules this year. The government has made the new tax regime  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  holds the refund until everything is verified again.

OLD CASES HOLDING UP NEW REFUNDS

If you have any old tax demands or pending assessments, your new refund can be stopped 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.

SOME FORMS STILL NOT AVAILABLE

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.