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CBDT Reveals Reasons Behind FY24-25 ITR Refund Delays and Future Outlook

Source: ITR Refund Delay FY24-25: CBDT Chairman reveals reasons; here's when you will get it and steps to check status (2025-11-26)

The Central Board of Direct Taxes (CBDT) has officially addressed the ongoing delays in Income Tax Refunds for FY24-25, providing clarity on the causes and guidance on when taxpayers can expect their refunds. According to the CBDT Chairman, the primary reasons for the delay include increased volume of refunds due to recent tax reforms, technical glitches in the e-filing portal, and procedural bottlenecks caused by the high volume of filings during peak season. The CBDT assures taxpayers that steps are being taken to expedite processing, including system upgrades and process streamlining, with most refunds expected to be disbursed by the end of December 2025. Taxpayers can check their refund status through the official e-filing portal or the income tax department’s mobile app. In addition to these updates, recent developments in the Indian tax landscape include the implementation of new faceless assessment procedures, which aim to reduce processing times and increase transparency. The government has also announced plans to enhance the capacity of the Income Tax Department by hiring additional officers and investing in AI-driven automation tools to handle the increasing workload efficiently. Furthermore, the CBDT has emphasized the importance of timely filing and accurate disclosures to prevent delays, urging taxpayers to verify their details and ensure compliance. The delay in refunds has impacted various sectors, especially small businesses and individual taxpayers relying on timely refunds for cash flow management. Recognizing this, the government has introduced measures such as provisional refunds and expedited processing for certain categories of taxpayers. The CBDT has also committed to improving communication channels, providing regular updates on refund status, and addressing taxpayer grievances promptly. Looking ahead, the Indian government is focused on leveraging technology to transform the tax administration landscape. The recent rollout of AI-powered chatbots and real-time tracking systems aims to enhance user experience and transparency. Additionally, the government is exploring the use of blockchain technology to secure and streamline tax data management, which could further reduce processing times and prevent fraud. Recent facts that highlight the evolving tax environment include the following: 1. The Indian government has allocated over ₹2,000 crore for upgrading the IT infrastructure of the Income Tax Department in FY25. 2. The number of income tax returns filed in FY24 increased by approximately 15% compared to the previous year, reflecting higher compliance and digital adoption. 3. The CBDT has set a target to reduce the average refund processing time from 45 days to 20 days by mid-2026 through automation. 4. The government has introduced a new portal feature allowing taxpayers to upload additional documents directly, reducing the need for physical submissions. 5. The recent budget announced a plan to expand the use of AI and machine learning in tax audits and compliance checks, aiming to improve efficiency and reduce manual errors. In conclusion, while the FY24-25 income tax refund delays have caused inconvenience, the CBDT’s proactive measures and technological advancements signal a positive shift towards a more efficient and transparent tax system. Taxpayers are encouraged to stay updated through official channels and ensure their filings are accurate to facilitate faster processing in the future. The Indian government’s commitment to leveraging innovation in tax administration promises a more seamless experience for taxpayers and a stronger, more compliant economy.

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