Overview

• By September 22, the Income Tax Department had processed 50.1 million returns with more than 10 million still pending, resulting in slower refund credits.
• Large refunds and returns with high deductions or data mismatches—particularly under the Old Tax Regime—are facing intensified verification using AI and data analytics.
• Media reports say roughly Rs 700 crore in fake deduction and exemption claims were detected, and the department has begun issuing notices to flagged filers to enable corrections.
• Tax experts report that simpler cases and smaller refunds, often below about Rs 10,000, are being paid out more quickly than larger or complex claims.
• Tax practitioners have sought broader deadline relief and filed court petitions, and the Rajasthan High Court has extended the tax‑audit report due date by one month, with no nationwide extensions announced.