What is the story about?
Income tax refund delay: According to multiple posts on the X platform, several taxpayers are suddenly receiving a message saying, “Your ITR refund is
on hold due to risk management discrepancies. File revised return within a week.” Taxpayers are confused as Income tax refunds are being held back, some claiming due to a paperwork gap, others discovering that refunds are stalled because Form 16 doesn’t fully mirror what they claimed in their ITR. The system flags deductions as “mismatches”, and the burden of reconciliation now sits squarely with the taxpayer.
Income tax refund delay: Belated and revised ITR filing deadline approaching
December 31, 2025, is the last date for taxpayers to file a belated or revised income tax return for FY 2024-25. A belated return can be filed if you missed the original deadline, but it comes with a late filing fee of up to Rs 5,000 (Rs 1,000 for individuals with income below Rs 5 lakh) plus interest on any unpaid tax.
A revised return, used to correct errors or omissions in an already filed ITR, can also be submitted until December 31.
After this cutoff, both options lapse. Taxpayers will then only have the choice of filing an Updated Return (ITR-U), which, while allowing correction of missed income or discrepancies, carries a far heavier penalty, an additional 25% to 50% of the tax and interest payable, depending on how late it is filed.
This makes December the final, and most cost-effective, window for those who missed earlier deadlines or need to rectify mistakes in their returns.
Also Read in Hindi: Income Tax Return: आयकर विभाग की सख्ती! 15 लाख लोगों ने सुधारी गलतियां, आपने ITR चेक किया? ये है लास्ट डेट
Why are so many ITRs still pending? Check common mistakes taxpayers make
1. Delays in receiving income tax refunds generally are due to filing errors, system checks for high-value claims and incomplete verification by taxpayers. While small income tax refunds have been processed for most filers, many taxpayers are still waiting because their returns have been flagged for additional review, or because they missed key compliance steps.
2. In some cases, refunds can also be withheld under Section 245(2) if past tax demands need adjustment. However, many delays arise from taxpayer mistakes. Under Section 143(1), the Income Tax Department has until December 31, 2026, to process returns filed for FY 2024-25.
3. Bank account issues are another major reason for refund delays. Refunds often fail when the nominated account is not pre-validated, has been closed before the refund is credited, or reflects an outdated IFSC code following bank mergers. Only PAN-linked and pre-validated bank accounts are eligible to receive income tax refunds. To resolve this issue, taxpayers must update and validate their bank account details on the income tax e-filing portal, the report noted.
