In Assessment Year 2025–26, many taxpayers have noticed delays in receiving their income tax refunds, with their status showing “under verification.” As per CBDT guidelines, refunds will not be processed for flagged returns until the investigation or verification process is complete.
The Central Board of Direct Taxes (CBDT) has intensified its scrutiny of refund claims by introducing automated checks through its risk management system. Returns showing mismatches or unusual patterns are automatically flagged.
Common reasons for refund delay include mismatched income or TDS details in Form 26AS or AIS, high deduction claims under Chapter VI-A, filing using incorrect ITR form or regime, and cases selected for e-verification or reassessment.
These delays are legally supported under Sections 143(1D) and 241A of the Income-tax Act, 1961. A refund can be lawfully withheld during scrutiny or if it could significantly impact revenue, with the Principal Commissioner's approval. The Delhi High Court has emphasised that any delay must have valid reasoning and cannot continue indefinitely.
Taxpayers can verify their refund status by logging in at www.incometax.gov.in, navigating to ‘View Filed Returns,’ and selecting AY 2025–26. A status message stating “return is under verification/refund will be issued post verification” confirms the return is held for review. Updates may also be communicated via email or SMS.
Read More: ITR Filing 2025: Your Income Tax Refunds May Be Delayed, Know the Reasons!
If your return has been flagged, make sure that all entries match your Form 26AS and AIS. Filing multiple revisions may complicate the review. Corrections can be submitted through a rectified or updated return under Section 139(5) if errors are later identified. If a notice is received from the Central Processing Centre (CPC), respond promptly to avoid further delays.
Once the verification is completed successfully, most legitimate refunds are processed within 30 to 60 days. If there is no update after 90 days, taxpayers can file a grievance on the Income Tax portal or seek assistance from their jurisdictional Assessing Officer. Interest under Section 244A may be available post-verification.
Refund delays for AY 2025–26 are primarily due to increased scrutiny and automated flagging by the Income Tax Department. While frustrating, these delays are part of stricter compliance checks. Taxpayers with accurate filings should remain patient and ensure their records are internally consistent to avoid additional queries.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities are subject to market risks. Read all related documents carefully before investing.
Published on: Jul 8, 2025, 1:35 PM IST
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