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Income Tax Dept Holds Flagged Refunds, Urges Revisions by Dec 31 Under NUDGE

Data checks flagged Form 16 mismatches alongside suspected bogus donation claims, prompting advisories to review returns.

Overview

  • CBDT says more than 15 lakh revised returns for AY 2025–26 have been filed, with over 21 lakh updated returns for earlier years yielding more than Rs 2,500 crore.
  • Refunds are on hold for returns flagged by the risk framework due to discrepancies that inflated claims, with processing to resume after correction or satisfactory explanation.
  • The NUDGE outreach has triggered bulk SMS and email alerts, while many taxpayers report stuck refunds, missing detailed emails and difficulty reaching helplines, and some seek a deadline extension.
  • Flagged issues include deductions not matching Form 16 (such as 80C, 80D or HRA), suspected bogus donations routed via RUPPs, incorrect donee PANs, TDS/AIS gaps and non-disclosure of foreign assets or income.
  • The last date to file a revised return is December 31, and from January 1 changes must be made via an updated return with additional tax, as officials indicate some held refunds are now being released.