The income tax return filing season concluded over two months ago, and while most taxpayers have received their refunds, significant delays are affecting those with larger claims. The Central Board of Direct Taxes (CBDT) has revealed that returns claiming refunds exceeding ₹50,000 are facing additional scrutiny, causing unexpected hold-ups in processing.
Why High-Value Refunds Are Getting Delayed
CBDT Chairman Ravi Agrawal stated on Monday that the Income Tax Department is conducting detailed analysis of wrongful deductions claimed in certain cases. This intensive verification process is primarily responsible for the current delays in refund processing.
The department is specifically examining high-value refund claims and those flagged by the system due to suspicious deduction patterns. This enhanced scrutiny aims to prevent fraudulent claims and ensure tax compliance, though it has extended processing times for legitimate taxpayers.
Ground Reality: Chartered Accountants Report Widespread Delays
The impact of this intensified verification is being felt across the taxpayer community. Mumbai-based chartered accountant CA Chirag Chauhan, founder of CA Chauhan & Company, reports that approximately half of his clients with refunds exceeding ₹50,000 haven't received their payments.
"Almost half of my clients whose refunds are greater than ₹50,000 have yet not received their refunds. Most others have already received theirs," Chauhan confirmed, highlighting the disproportionate effect on larger refund claims.
Understanding Your Refund Rights and Tracking Process
Taxpayers facing delays should know that they're entitled to interest on belated refunds. Under Section 244A of the Income Tax Act, the government pays interest at 6% per annum from April 1st until the refund issuance date.
"Interest is calculated from 1 April onwards. So, if someone gets a refund in November, he will receive interest for the April-November period," explains Chauhan.
To track your refund status, follow these steps: Visit the e-filing portal homepage, log in with your user ID and password, navigate to the e-file tab, and select 'View Filed Returns'. This section displays the complete lifecycle of your ITR, including whether the refund has been issued, partially adjusted, or failed.
Common Reasons for Refund Delays Beyond Scrutiny
While high-value claim verification is the primary cause of current delays, several technical issues can also prevent refund processing:
Bank account not being pre-validated remains a major hurdle. Mismatch between the name in bank records and PAN card details often causes rejections. Invalid IFSC codes and closed bank accounts mentioned in tax returns also contribute to processing failures.
Taxpayers expecting refunds above ₹50,000 should prepare for potential delays while ensuring their bank details are accurately updated and validated in the system.
