New Delhi: If you filed your Income Tax Return (ITR) on or before 16 September 2025 and are expecting a refund, this news is important for you. Many taxpayers are reporting that refunds are delayed this time.
The Income Tax Department investigated the issue and found out the real reason.
Fake tax deductions under Old Tax Regime found
The department discovered that many people made wrong claims for tax deductions, mostly under the Old Tax Regime. These include fake medical expenses and fake donations. Using computer systems and AI (Artificial Intelligence), the department found these wrong claims.
Fake Claims Worth Rs 700 Crore Detected
The Income Tax Department caught fake claims worth about Rs 700 crore. Most of these were made by people earning more than Rs 20 lakh annually. Because of this, the refund processing has been slowed down.
