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Income Tax Refund Delays: Reasons Why Refund is Delayed and What Taxpayers Can Do About it


Income Tax Refund Delays: Reasons Why Refund is Delayed and What Taxpayers Can Do About it

New Delhi: This year the Income Tax department sent emails and text messages to taxpayers across the country concerning the new income tax refund delays. The department indicated that tax refunds were on hold because of "mismatches" in the taxpayers' ITR filings. This is one of the main issues the department has been dealing with in the tax refund delays.This year the department had to deal again with significantly lower tax refund payouts than the year before, and from the period of April to September 2025. The department has also had to deal with overall increased direct tax collections in the country. This means that the department has to deal with more filed tax returns and fewer tax refunds, and more system delays.Return Processing Status HeldThere is an unusual status in the sending a message to the taxpayer who received a message indicating a hold on the refund with the following message: \\"Processing of the said return was held as it was identified under the risk management process due to... refund request? Based on this email it seems a detailed email was sent to the user hold email to this email address.\\" Other main reason of the pause in the refund is due to increased risk management measure of releasing returns with greater amounts of refund requests, especially under the old tax regime, which are... expired? Further analysis is likely increased monitoring of risk management processes in place, which may reduce accuracy of tax withholding in these cases. What the taxpayer can do From tax experts, it seems... if they are encountering an issue, they may in fact have to consider... refund request? It seems difficult to think that the user hold email is valid. The processing of the email with relevant tax information as outlined herein is not null or void. If the return request has not been processed and it has been a long time, etc. the taxpayer may consider submitting additional information on the tax return submitted thus providing the information.Though these discrepancies may be frustrating, it should be noted that most of these refund holds are seen as most of these verification issues are fixed. Regardless, this is the slower of the two years; the refunds will be issued as soon as the issues in question surrounding the verification are cleared.

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