Taxpayers across India are expressing growing frustration over what they claim are significant delays in the processing of their income tax refunds for the Assessment Year 2025-26. Despite early filing and e-verification, many individuals who submitted their returns in June and July are still waiting for their refunds, leading to a wave of public discontent, particularly on the social media platform X (formerly Twitter).
The Problem at a Glance
While the Income Tax Department has previously been lauded for its efficiency in processing refunds, this year’s process appears to be moving at a slower pace. Chartered Accountants and financial experts have noted that as of late August, only a fraction of the filed ITRs have been processed, with one professional, CA Sumit Sharma, stating on X that “Only 37% ITR processed so far,” and questioning the department’s public claims of swift refunds.
The delays are particularly impactful for individuals who rely on their refunds for urgent financial needs. A user on X, @chaitanyacool, tagged the Income Tax India and Finance Minister, expressing exasperation after waiting over 65 days for a refund needed for an emergency, stating that “no help yet.” These sentiments are echoed by countless other users who have taken to the platform to vent their frustration and demand action from the authorities.
Potential Reasons for the Delays
While the Income Tax Department has acknowledged the delays and assured taxpayers that efforts are underway to streamline the process, several factors are believed to be contributing to the issue:
- Systemic and Technical Glitches: Reports from chartered accountants suggest there may be a technical issue in the system. For instance, CA Aditi Bhardwaj highlighted on X that the refund amounts for AY 2025-26 are not being rounded off to the nearest ten rupees as per Section 288B of the Income-tax Act, 1961, a procedural error that could be indicative of larger system-level problems.
- Increased Scrutiny: The department’s enhanced focus on compliance and fraud prevention, including a nationwide crackdown on fake refund claims, has led to a more stringent scrutiny of returns. The “Risk Management System” (RMS) may flag returns for further verification based on discrepancies or high-value claims, delaying the processing of even genuine cases.
- New ITR Forms and System Updates: The introduction of new ITR forms for AY 2025-26, which require more detailed information from taxpayers, may have triggered additional scrutiny and system updates, temporarily affecting processing timelines. The delayed release of certain ITR utilities also contributed to a later start to the filing season.
- Discrepancies in Taxpayer Filings: As always, some delays are attributable to errors on the taxpayer’s part. Common issues include:
- Mismatch between ITR data and Form 26AS/Annual Information Statement (AIS).
- Incorrect or unvalidated bank account details.
- Failure to e-verify the return within the stipulated time.
- Pending tax demands from previous assessment years being adjusted against the current refund.
Taxpayers’ Digital Outcry
The digital public square of X has become a primary outlet for taxpayers to voice their concerns. Posts range from personal anecdotes of financial hardship to sharp critiques of the government’s tax administration. A common theme is the feeling of being ignored, with many users reporting that their grievances and helpline calls have gone unanswered or simply resulted in a request to “wait.”
Here’s a look at some of the recent tweets from frustrated taxpayers:
- @chaitanyacool: “@IncomeTaxIndia @nsitharaman it’s been more than 65 days that my CA filed my ITR. Expecting the returns for I need the return amount urgently for something, and no help yet. Called several times to be asked to wait. Please refund the money! There are 3 tickets raised! No action!”
- @ca_sumitsharma: “ITR will get Processed and Refund will get issued very fast was a Jumla?? Approx 3 months Gone and ITR processing has stopped Only 37% ITR processed so far.”
- @sachin_gupta_in: “Is anyone else facing a huge delay in their ITR refund for AY2025-26? Filed in June, e-verified the same day. Status is still ‘Under Processing’. No intimation, no update. The refund amount is significant and needed urgently. #ITRrefund #incometax”
- @deepak_kumar: “My friend received his refund in 4 days. I filed mine a week before him and I’m still waiting. What’s the logic behind the randomness of the refund process @IncomeTaxIndia? #ITR”
- @Financial_Joker: “The tax department needs to clarify the reason for the mass delays. Is it the new system? Is it the increased scrutiny? Or are they just short-staffed? A simple update on the portal would save thousands of taxpayers a lot of anxiety. #incometaxrefund”
The public commentary on X serves as a real-time barometer of the public’s sentiment, with users tagging key government handles like @IncomeTaxIndia and @nsitharamanoffc (Finance Minister Nirmala Sitharaman) to bring attention to their issues. The sheer volume of these posts highlights the widespread nature of the problem and the urgent need for a resolution.
What Taxpayers Can Do
While waiting for the refunds, taxpayers are advised to take proactive steps:
- Check Refund Status: Log in to the e-filing portal to check the status of the ITR and refund. The portal will show if the return is “Processed” and if a refund has been issued.
- Look for Intimations: Review the e-filing dashboard and registered email for any notices or intimations from the Income Tax Department requesting additional information or clarification.
- Validate Bank Details: Ensure the bank account provided for the refund is pre-validated and that all details (account number, IFSC code) are correct and match the information on the PAN.
- Raise a Grievance: If there is an undue delay with no clear reason, taxpayers can raise a formal grievance on the Income Tax e-filing portal.
The situation underscores the importance of a smooth and transparent tax administration system. As the frustration mounts, the Income Tax Department is under pressure to not only resolve the backlog but also to communicate effectively with taxpayers to restore confidence in the refund process.
Author Bio
AY 25-26 return re open date