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Income Tax Refund Delays: What Non-Audit Taxpayers Should Know

Many non- audit taxpayers across India are experiencing significant delays in receiving their income tax refunds for Assessment Year 2025–26.

While refunds for most individuals are usually processed within a few weeks of filing their returns, this year’s timeline has stretched longer than expected.The Central Board of Direct Taxes (CBDT) has recently clarified that the delay is primarily due to enhanced verification processes, data cross-matching requirements, and ongoing system upgrades aimed at improving accuracy and reducing refund-related discrepancies.

CBDT Chief has indicated that the pending refunds for non- audit taxpayers are likely to be released by December 2025, bringing clarity and reassurance to millions of taxpayers. 

The department is reportedly refining back- end workflows to ensure seamless integration between AIS, TIS, Form 26AS, and high-value transaction data. This comprehensive validation, though time-consuming, is expected to significantly reduce mismatches and erroneous refunds in the long term.

Taxpayers are advised to respond promptly to any notification / notice issued by income tax department, and ensure that their bank details and pre-validation status are up-to-date on the e-filing portal.

While the wait may be longer this year, the assurance from CBDT signals that refunds are forthcoming, with improved accuracy and fewer processing errors.