Why Income Tax Refunds Are Delayed In 2025? CBDT Says Most Pending Payouts Will Be Cleared By December

Why Income Tax Refunds Are Delayed In 2025? CBDT Says Most Pending Payouts Will Be Cleared By December

CBDT has clarified that pending income tax refunds for AY 2025-26 are delayed due to detailed scrutiny of high-value or red-flagged claims involving questionable deductions. The department is also asking some taxpayers to file revised returns. Most legitimate refunds are expected to be processed and released by December 2025.

Manoj YadavUpdated: Tuesday, November 18, 2025, 12:47 PM IST
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Refund Delays Leave Taxpayers Waiting Longer Than Expected. |

New Delhi: It’s already deep into the 2025 tax season, and a lot of people are still checking their accounts, waiting for those income tax refunds to show up—even though they filed months ago. Non-audit ITRs for Assessment Year 2025–26 went in by September 16, so most folks figured their refunds would arrive pretty quickly. But this year, things have dragged on for many, and that’s left people frustrated and wondering what’s going on. The Central Board of Direct Taxes (CBDT) finally stepped in to explain what’s causing these hold-ups and when taxpayers can expect their money.

CBDT: Refunds Are Coming by December

Ravi Agrawal, who heads the CBDT, says most of the pending refunds should land in people’s accounts by December 2025. The department’s been doing extra checks on returns that look unusual or don’t fit normal patterns. Sure, this slows things down, but the goal is to make sure refunds are real, accurate, and follow the rules.

Agrawal insists the department isn’t dragging its feet just for the sake of it. They’re just sorting out discrepancies that popped up when automated systems flagged certain returns for a closer look.

Why Refunds Are Slower This Year?

According to the CBDT, a lot of refund claims this year either involved big amounts or got red-flagged because of the types of deductions people claimed. Those cases need manual checks to make sure the deductions are legit. It’s not just about paperwork—these checks help stop fraud or inflated claims, which have become more common with new filing habits and more digital processing.

Agrawal also mentioned that they’ve contacted some taxpayers directly, asking them to file revised returns if they missed something important or made a mistake. That way, they can clear up issues and get refunds moving once the corrections are in.

What’s Next for Taxpayers?

These delays are annoying. Still, the CBDT says that real, legitimate refund claims will get processed quickly once all the checks are done. Most people waiting should see their refunds by December, as long as their filings are accurate and don’t have any outstanding problems. So, if your return is in order, things should get back on track soon.

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