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Income-Tax Refund Delays Grow in India After Deadline as Bigger Claims Face Scrutiny

Extra checks on larger claims are slowing payouts after the September 16 filing rush.

Overview

  • Taxpayers report stalled refunds on social media, and the Finance Minister has asked the department about the holdup.
  • Larger refunds, especially above Rs 20,000, are undergoing more verification to curb errors and fraud, extending processing times.
  • Common holds stem from unverified ITRs beyond 30 days, bank account pre-validation failures, and mismatches with Form 26AS or AIS.
  • Refunds can be offset against outstanding past tax demands, and delays may attract 6% annual interest under Section 244A.
  • Status can be checked on the Income Tax e-filing portal or the NSDL site, with options to file grievances or request refund reissue if credit fails.