There's rising fear among taxpayers, each the ones who have filed and are looking forward to refunds, and those yet to document, about delays in earnings tax refunds for the assessment 12 months 2025-26. Cutting-edge developments and professional perspectives advise that itr assessments are tighter this 12 months, not just for present day returns however also for antique ones.
Late begin to itr submitting
One large cause for the put off is that the tax submitting season started out overdue this yr.
Commonly, people can document their returns from april onwards. But this time, the income tax branch launched the itr utilities quite past due. The paperwork for itr-1 and itr-4 got here out only on the cease of can also. Bureaucracy for itr-2 and itr-three have been launched even later, in july.
New rules delivered to the confusion
Another cause is the numerous changes to tax guidelines this year. The government has made the new tax regime the default and brought more info to the itr forms. Now, the tax branch asks for more statistics, because of this it takes longer to test and approve returns.
On pinnacle of this, each go back is matched with the yearly data assertion (ais) and form 26as. If there may be a mismatch or a big refund declare, the machine flags it and holds the refund until everything is demonstrated again.
Old cases conserving up new refunds
When you have any antique tax demands or pending assessments, your new refund can be held back too.
The tax department is authorized to regulate your refund towards any old dues. So, in case your preceding year's case is still open, this year's refund may additionally take longer to attain you.
Some paperwork nevertheless not to be had
Any other difficulty is that now not all itr forms are to be had but. Paperwork for itr-5, 6 and seven have not been launched to this point. This has pressured the government to increase the itr filing deadline from july 31 to september 15, 2025.
In the meantime, the best component is, in case your refund is not on time beyond the closing date, the tax department has to pay you hobby underneath segment 244a of the profits tax act.
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