Here’s an article-style update on TDS refund / income-tax refund for Assessment Year (AY) 2025-26, covering what’s new, why many refunds are delayed, what the tax department says — and what you should know if you’re waiting for your refund.
What is this refund about (TDS / ITR refund for AY 2025-26)
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When you pay more tax (for example, higher TDS — Tax Deducted at Source — or advance tax) than your actual tax liability for the year, you become eligible for a refund.
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For FY 2024-25 (which corresponds to AY 2025-26), many taxpayers have filed their returns, claimed refunds via ITR (or TDS), and are now awaiting processing and refund credit.
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Refunds are usually credited electronically to the bank account linked to your PAN after e-verification of the return. Income Tax Department
What’s causing the delay — and what’s new this year
🔍 Greater scrutiny of “high-value” or “flagged” refund claims
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According to the Central Board of Direct Taxes (CBDT), many refund claims for AY 2025-26 are being analysed using technology / AI because in past years there were instances of “bogus deductions” (e.g., fake donations) submitted to inflate refunds.
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As a result, refunds falling under “high-value” or “system-flagged” categories are subject to additional checks before disbursement.
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The CBDT Chairman has stated that while low-value refunds are being released, flagged ones remain under review.
⏳ Effect of late ITR filing & extended deadlines
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The deadline to file ITRs for AY 2025-26 was extended beyond the usual date. Income Tax Department
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Because many returns were filed close to the deadline, and a large volume of submissions hit the system around the same time, processing has slowed down.
⚠️ Common reasons for TDS refund hold-ups
Refunds may be delayed (or withheld) if there are issues such as: mismatch between ITR-claim and your TDS credit as shown in Form 26AS, incorrect bank or IFSC details, PAN-Aadhaar linking problems, or other discrepancies.
Also Read: https://gstandtax.com/is-your-international-payment-taxable/
What has the CBDT said — when can taxpayers expect refunds?
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According to a recent statement by the CBDT Chairman, “low-value” refunds have already started going out, but high-value/refund claims under scrutiny will take more time.
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As per recent media coverage, the department expects most pending refunds to be credited by end of November or December 2025.
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Taxpayers whose refunds are delayed are advised to check the refund status on the official income-tax e-filing portal or via the NSDL refund status — especially after e-verification of returns.
What you (as a taxpayer) should do right now if you’re waiting
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Log in to the e-filing portal: Use your PAN and password → Go to “View Filed Returns” → Select AY 2025-26 → Click “View Details / Refund Status”. Income Tax Department
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Ensure your bank details are correct: Check that your bank account, IFSC, MICR, PAN-Aadhaar linking are all valid. Inaccuracies here often cause refund delays.
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Check Form 26AS / TDS credits: If there’s a mismatch between claimed TDS and what is reflected in Form 26AS, that could trigger further scrutiny.
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Be patient for flagged refunds: If your refund is “high-value” or flagged, it may take longer — but the department has indicated most such refunds should be released by December 2025.
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Stay alert for notifications: Sometimes the tax department may send intimation about discrepancies or demand additional information — check your registered email or ITR portal messages.
What this means overall — for taxpayers and Indian tax regime
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The extra scrutiny this year reflects the government’s attempt to curb abusive refund claims (bogus deductions, fake TDS) — aiming for fairness in tax refund processing.
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But for honest taxpayers with valid claims, it means delays — especially for large refunds — even if ITR was filed correctly.
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The extended deadlines and backlog of ITRs have compounded delays, highlighting systemic pressure on refund-processing infrastructure.
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For many, refunds might now come with interest (for delay beyond prescribed timeframe) — but that depends on when the processing completes and refund is credited.