ITR Refunds Stalled for Many Taxpayers as CBDT 'Nudge' Notices Hold Payouts

Overview

• Many filers for AY 2025-26 remain unpaid months after the September 16 filing deadline as cases await resolution.
• CBDT chairman Ravi Agrawal said anomalies in high-value deduction claims are being flagged, triggering intimations that require action.
• The department is matching returns with Form 26AS, AIS and TIS, resulting in Section 143(1) communications that taxpayers must review and address on the e-filing portal.
• Payouts fail if the PAN-linked bank account is not pre-validated or is incorrect, and refunds may be adjusted against outstanding demands from earlier years.
• Returns can legally be processed through December 31, 2026 under Section 143(1), with 6% interest on eligible delays under Section 244A unless the taxpayer caused the hold-up.