Income Tax Refunds Slowdown: What Taxpayers Need to Know

Taxpayers have noticed that this year, refunds are proceeding very slowly compared to the previous year. Many taxpayers’ returns are still marked as “under processing”. Experts say that the delays are happening because of strict verification checks, data mismatches, and seasonal backlogs rather than any systemic freeze.

Tax experts pointed out that mismatches between the Annual Information Statement (AIS), Form 26AS, and the income reported in returns are the main reason for the delays.

Several taxpayers face delays in getting their tax refunds, especially if they have multiple sources of income, trade stocks actively, or earn money from abroad. These situations often cause the tax system to flag their returns for a closer look, which slows things down.

The Centralised Processing Centre (CPC) in Bengaluru is checking returns more carefully than before. Large refunds or returns with unusual details are examined in more detail, so they take longer.

Another common reason refunds are slow is when bank account details are wrong or haven’t been verified properly.

Sometimes, even when the tax department processes a refund, it can get delayed if there’s a mismatch in your name, bank account issues, or an inactive account. To help, the Income Tax Department’s social media team has been guiding people to the official grievance system on the e-filing portal.

What should taxpayers do?

Check refund status: Use the “View Filed Returns” section on the e-filing portal.

Update bank details: Make sure your bank info matches your PAN records.

Fix AIS mismatches: If your Annual Information Statement (AIS) doesn’t match your return, you may need to give feedback or file a corrected return. This year, the tax department can now fix some minor mistakes on its own, which may help clear smaller refunds faster. But big refunds or complicated income cases could still take longer.

What Experts Say?

Here’s what experts suggest to taxpayers:

• Make sure your AIS info matches your return.
• Respond quickly if you get any notices.
• Keep your bank info up-to-date. If your refund is stuck for too long, raise a grievance ticket on the portal and ask for it to be escalated if needed.

Delays are mainly because the tax department is double-checking data more carefully, not because they’ve stopped paying refunds. As they get through the backlog and the new checks become routine, refunds should start being processed more smoothly.