ITR Refunds Delayed for High-Risk Claims Under Scrutiny: CBDT Chairman
The processing of many income tax refunds for the 2024-25 assessment year is facing delays due to heightened scrutiny of high-value and red-flagged claims, according to CBDT Chairman Ravi Agrawal. While straightforward, low-value refunds are being released, complex claims are undergoing extra verification, slowing the overall process.
Key Takeaways
- High-value or red-flagged ITR refund claims are under extra verification, causing delays.
- Low-value and straightforward refunds are still being processed and released.
- Valid refunds are expected to be cleared by November or December.
- Total refund value issued this fiscal saw an 18% decline compared to last year.
Official Statement on Refund Delays
CBDT Chairman Ravi Agrawal confirmed that the system has flagged certain claims for deeper examination. “Low-value refunds are being released,” he stated, but noted the department discovered numerous cases of incorrect or inflated deductions. He hopes the remaining valid refunds will be processed by year-end.
Refund Data and Trends
From April 1 to November 10 of this fiscal year, refunds issued exceeded approximately Rs 2.42 lakh crore. However, this reflects an 18% decline compared to the same period last year, attributed to fewer claims and increased verification efforts.
Appeal Backlog Reduction
The CBDT is also tackling the direct tax appeals backlog. Agrawal reported that appellate authorities, working “overtime,” have disposed of over 40% more appeals this year compared to the previous year.
Advice for Taxpayers
For those awaiting refunds, the chairman advised reviewing filed returns. Submitting a revised return to correct any omissions or misstatements can significantly speed up processing.
In essence, the current delay stems from enhanced compliance checks on specific claims, not a systemic failure. Taxpayers with simple filings should receive refunds shortly, while larger, complex claims will take longer due to necessary verification.
