Particle.news

Download on the App Store

Late ITR Utilities And Stricter Data Matching Stall India’s Tax Refund Disbursements

Delayed ITR tool releases alongside expanded AIS/Form 26AS scrutiny have left many refunds withheld with interest accruing

ITR FILING
Image
Image
Image

Overview

  • Over 1.16 crore ITRs have been filed and 1.09 crore verified for AY 2025–26 but most refunds remain on hold due to delayed system rollouts.
  • Utilities for complex ITR forms are still pending release, forcing the government to extend the filing deadline to September 15.
  • Automated matching of ITR data with AIS/Form 26AS and the flagging of unusually large refund claims have introduced additional verification layers.
  • The department has been deducting current-year refunds against pending assessments and tax demands from previous years.
  • Taxpayers are entitled to interest under Section 244A for any refund delays beyond the stipulated processing time.