Mumbai, December 10: Many taxpayers are still waiting for their Income Tax Refunds (ITR), as the payouts have been delayed longer than usual for some people this year. Though a large number of taxpayers have already received it, some refunds are pending due to claims that were identified as "red flags" by the income tax department’s system.

A total of 6.97 crore ITRs were filed by taxpayers in the assessment year 2025-26. CBDT Chairman Ravi Agrawal said legitimate payouts are expected by late December. “Low-value refunds are being released. We have analysed and found that some wrong refunds or deductions were being claimed. So, this is a continuous process. We hope to release the remaining refunds by this month or by December," Agrawal said. ITR Filing Last Date: Income Tax Portal Down Amid Last-Minute Rush, Allege Taxpayers As They Scramble To File Returns on Final Day of Deadline.

ITR Refund Delay: Reasons

ITRs are running slower this year as the department manually reviews returns with unusual or high-value deduction claims, Agrawal said. He explained that several applications were flagged by the system as “red-flagged,” prompting closer scrutiny before releasing refunds.

The CBDT chief also noted a dip in overall refund outflow, indicating “negative growth,” possibly because refund claims themselves have reduced after TDS rates were rationalised. Income Tax Day 2025 in India: It’s ITR Filing Season and These Funny Memes, Instagram Reels and Jokes Are Pure Gold, Only Taxpayers Can Relate.

How To Check Income Tax Refund Status?

  • Visit the e-filing portal at incometax.gov.in/iec/foportal/.

  • Enter User ID and Password.

  • Go to ‘e-File’ tag, then Income Tax Returns, and then View Filed Returns.

  • You can now check the refund status for the assessment year 2025-26.

It must be noted that under income tax rules, taxpayers are entitled to interest if their genuine refunds are delayed, even when the hold-up is due to enhanced scrutiny by the department. The law mandates an interest payout of 0.5% per month on the pending refund amount.

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(The above story first appeared on LatestLY on Dec 10, 2025 07:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).