
Income Tax Refund Status LIVE Updates: The income tax department has been sending several taxpayers bulk emails and SMSes over the past few days, saying that they have put on hold some taxpayers' I-T refunds due to mismatches in their ITR filing. Many of such taxpayers have flagged the issue on the internet, demanding answers and saying that they had not been notified before.
“Processing of the said return was held as it was identified under risk management process on account of certain discrepancies in the claim of refund. An email with details has also been sent to your registered email address,” the message sent to taxpayers typically reads, according to multiple screenshots shared on social media platforms by users.
The Income Tax department has also asked to file a revised ITR for AY2025-26 by the deadline, which is 31 December, 2025. Taxpayers have been arguing that the 31 December deadline was not enough as they were not prepared for this.
The ordeal has raised confusion and chaos among taxpayers, as they posted screenshots of their emails and messages online to seek clarity of the situation.
Follow this blog for LIVE updates on the income tax issue.
The last date to file a revised return this year is just five days away. If you miss the 31 December deadline, then the only option left is to file an ITR-U, which involves additional tax, interest, and penalty implications.
If a taxpayer chooses not to take any action, the return may still be processed. Following this, the tax department may issue a notice under Section 133(6), seeking information for verification. If the response is found to be unsatisfactory, then scrutiny may be initiated under Section 147, said tax experts.
The deadline for filing a revised return is 31 December 2025, where taxpayers are allowed to make corrections in their ITR.
A belated return can be filed during several scenarios, which include missing out on any income or deduction, for example, a wrong TDS claim or underreporting of income.
Several screenshots of the alert which were reportedly sent to the taxpayers also mentioned that an updated return may be alternatively filed after 1 January 2026; but it comes at the expense of additional tax liabilities.
Here are some of the common reasons that may have contributed to your refund getting stuck:
— Mismatch between income reported and Form 26AS / AIS / TIS
— Non-reporting of capital gains, F&O trades, ESOPs, foreign income/assets
— Inflated or questionable deductions (HRA, insurance, donations, etc.)
— Not responding to compliance portal queries/intimations
— Sale of property not reported under capital gains
— High credit card spending/assets purchased/forex expenditure without corresponding income disclosure
As taxpayers are receiving such alerts from the Income Tax Department, concerns are rising among them about whether they could face scrutiny.
Concern is warranted for only those taxpayers who have deliberately avoided or underreported tax liability to get refunds.
Hence, honest taxpayers have nothing to worry about. All they have to do is simply review their filings, ensure income and deduction data match Form 26AS/AIS/TIS, and correct any unintentional errors if found, tax experts said.
According to tax experts, the alerts were not limited to taxpayers under a single tax regime, as beneficiaries of both new and old tax regimes received the alerts from the Income Tax Department.
However, they also noted that a majority of cases appear to have been sent to taxpayers who opted for the old tax regime, largely because it offers deduction-based tax planning avenues. While cases under the new regime arise only due to under-reporting or non-disclosure of income, rather than deduction claims.
Taxpayers whose refunds have been flagged under risk management may have to wait anywhere from a few weeks to a couple of months to receive them, according to tax experts.
However, it is essential to note that no fixed timeline can be guaranteed, as processing times vary from case to case.
An “ITR refund on hold” alert is not necessarily a sign of scrutiny. It simply means that the system has detected a mismatch with the Tax Deducted at Source (TDS) details or information reported under section 285.
The notice aims to give the assessee an opportunity to rectify any discrepancies, if present.
Concern is warranted for only those taxpayers who have deliberately avoided or underreported tax liability to get refunds.
ITR refund status live: Taxpayers should consider filing a revised income tax return (ITR) if they have made any of the below-mentioned errors while filing their previous ITR.
1. If the taxpayer has omitted, reduced, or exaggerated their income by mistake.
2. If the taxpayer has omitted deductions or claimed excess deductions or exemptions on their initial return.
3. In case of any miscalculations or missed necessary disclosures in their filing.
4. If the taxpayer had chosen the wrong ITR form.
5. If the taxpayer claimed less refund than they were eligible for.
— Taxpayers must maintain proper documentary evidence which may be required at the stage of assessment.
— They should also ensure that the deductions claimed are within the statutory limits prescribed.
— People liable to pay tax should ensure that deductions are only under the correct regime.
— Refrain from duplicate or inflated claims.
— Compulsorily verify the figures with Form 16, AIS and bank statements.
According to Ketan Vajani, the former president of Chamber of Tax Consultants, even though deductions which have not been declared to an employer during the year of account can still be claimed while filing the belated ITR, but there are some exceptions.
Certain deductions are admissible only when the return is filed within the due date, said Vajani.
He explained that certain deductions, under Chapter VI-A - Part C, which covers profit-linked deductions are available only if the return is filed within the due date. “For Assessment Year 2025-26, such due date has already gone so these deductions will now be no more available if the return is filed now. All other deductions are possible to be claimed in the return," he said.
As per the Income Tax Act, deductions which have not been declared to an employer during the year of account can still be claimed while filing the belated ITR.
“The tax deducted by the employer is only a provisional calculation based on the information available at that time. The ITR filing is the final and legally valid tax computation where eligible deductions can be claimed,” said Siddharth Maurya, the founder and Managing Director of Vibhavangal Anukulakara.
However, certain deductions are admissible only when the return is filed within the due date, which was 16 September 2025.
“Taxpayers who file a belated income tax return can revise it, just like an original return. However, the revision window closes on 31 December. For example, for the year 2024-2025, the revision due date is 31 December 2025. After this date, neither filing a belated return nor revising it is allowed,” said Sudhakar Sethuraman, Partner at Deloitte India.
“A revised return is filed to correct errors or omissions in a previously filed return (either original or belated). It can be filed before December 31 of the relevant assessment year or before the department completes the assessment. The revised return is linked to the original filing, and the taxpayer can make corrections without any penalties, apart from paying any additional taxes and interest,” says CA Shefali Mundra, tax expert at ClearTax.
A revised ITR is filed to correct any mistake in the original ITR. The mistakes may include omitted, reduced or exaggerated income, excess deductions, wrong ITR form choosing, claimed less or more refund than eligible among others.
Many social media users have shared screenshots of the alert sent by the income tax department. Take a look.
Here are the steps to check the ITR refund status —
Step 1: Visit the income tax portal at eportal.incometax.gov.in/iec/foservices/.
Step 2: Log in to your account with your user ID and password.
Step 3: Select the ‘e-File’ tab, click on 'Income Tax Returns' followed by ‘View Filed Returns’
Step 4: The status of your current and past income tax returns will be displayed on the screen.
Step 5: Select the 'View details' to check the status of your income tax refund.
After confirming your ITR submission, the income tax department usually starts processing the refund, which is generally credited within 4-5 weeks.
Earlier this month, the Central Board of Direct Taxes (CBDT) had said that through data analysis it has observed that huge amount of bogus claims have been made on account of donation to Registered Unrecognised Political Parties (RUPPs) or Charitable Institutions and reduced their tax obligations and have also claimed bogus refunds.
Taxpayers who have received the Income Tax department's notice or have made any mistakes or omissions in their original ITR filing have to file a revised ITR.
Here is a step-by-step guide detailed by the I-T Department to raise a refund re-issue request —
Step 1: Log on to the ‘e-filing’ portal https://www.incometax.gov.in/iec/foportal/
Step 2: Visit the Services menu and click on 'Refund reissue'.
Step 3: Create a refund Reissue request. You will get the details of Assessment Year for which refund got failed.
Step 4: Select the Assessment Year and click on continue.On next screen, you will get the details of Bank.
Step 5: Validate the bank if it is not validated. After validation, select such a bank and submit the request.
If taxpayers who have been nudged to file a revised ITR fail to do it by 31 December, they will have to file an updated ITR to make changes to their ITR for AY26. However, that will attract penalties of up to ₹5,000.
Taxpayers whose deduction or exemption claims are genuine and correctly made in accordance with law are not required to take any further action, the CBDT has said.
The last date to file revised ITR is 31 December, 2025. The income tax department has asked some taxpayers to file their revised ITR within the due date.
According to I-T Department data, taxpayers have paid over ₹2,500 crore as income tax for AY2025-26.
The I-T department has started a NUDGE campaign through which it sends advisories to identified taxpayers who have claimed wrongful deduction related to unrecognised political parties or charitable institutions.
All taxpayers who have paid more taxes than required in an assessment year is eligible to get income tax refund. The I-T Department reviews the documents and records after the taxpayer files ITR and issues refund.
“Taxpayers whose deduction or exemption claims are genuine and correctly made in accordance with law are not required to take any further action,” according to the I-T Department.
The I-T Department mentioned that an updated return may be alternatively filed after 1 January 2026; but it comes at the expense of additional tax liabilities.
There is no penalty for filing a revised ITR. However, you may have to pay more interest if you owe more tax than originally shown in your ITR.
Taxpayers who are required to file their ITRs for the financial year ended 2024-25 or the assessment year 2025-26 must file them with the authorities on or before 31 December 2025.
Step 1: Visit the income tax portal at eportal.incometax.gov.in/iec/foservices/.
Step 2: Log in to your account with your user ID and password.
Step 3: Select the ‘e-File’ tab, click on 'Income Tax Returns' followed by ‘View Filed Returns’
Step 4: The status of your current and past income tax returns will be displayed on the screen.
Step 5: Select the 'View details' to check the status of your income tax refund.
After confirming the ITR submission, the income tax department usually starts processing the refund, which is generally credited within 4-5 weeks.
Taxpayers can often miss certain details or make mistakes when filing their ITR. Under Section 139(5) of the Income Tax Act, 1961, taxpayers are given the opportunity to file a revised income tax return to rectify errors, including missed income, deductions, or miscalculations.
The taxpayers who received alerts must review their ITRs, verify the correctness of their deduction and exemption claims, and revise their returns, if required, within the prescribed time by 31 December 2025, so as to avoid further enquiries in the matter, the I-T Department said.
The CBDT stated that it has observed certain taxpayers claiming ineligible refunds by availing of deductions or exemptions to which they are not entitled, resulting in an understatement of income.
Out of the 3.6 million assessees, more than 2.1 million have updated their returns for four assessment years up to FY25, while 1.5 million individuals have revised their returns for the current assessment year, 2025–26, the CBDT said.
Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal said in November that the I-T Department is undertaking an analysis of wrongful deductions claimed in certain cases, which is why tax returns are being delayed.
Taxpayers who are required to file their ITRs for the financial year ended 2024-25 or the assessment year 2025-26 must file them with the authorities on or before 31 December 2025.
“Taxpayers whose deduction or exemption claims are genuine and correctly made in accordance with law are not required to take any further action,” according to the I-T Department.
There is no penalty to file a revised ITR. However, you may have to pay more money as interest amount if you owed more tax than originally shown in your ITR.
There is no limit to how many times you can file a revised return if you make mistakes. However, you cannot file a revised return once the assessing officer completes the assessment under Section 143(3) of the Income Tax Act.
Step 1: Go to the income tax e-filing portal.
Step 2: Log in to your account by using your PAN, password, and captcha.
Step 3: Select the ‘e-File’ menu and click ‘Income Tax Return’ link.
Step 4: Select the relevant assessment year and ITR filing form number.
Step 5: Choose ‘Filing Type’ as ‘Original/Revised Return’.
Step 6: Select ‘Submission Mode’ as ‘Prepare and Submit Online’
Step 7: In the Online ITR Form under ‘General Information’ Tab, Choose the ‘Return
Step 8: Filing Section’ as ‘Revised return under section 139(5)’ and ‘Return filing type’ as ‘Revised’.
Step 9: Enter the ‘Acknowledgement Number’ and ‘Date of filing’ of the Original Return filed.
The Income Tax Department has reportedly started sending SMS and email alerts to taxpayers for Assessment Year 2025-26, putting ITR refunds on hold under its risk management process due to discrepancies in their ITR filing.
The email sent to the taxpayers also mentioned that an updated return may be alternatively filed after 1 January 2026; but it comes at the expense of additional tax liabilities.
Taxpayers can often overlook certain details or make mistakes when filing their ITR initially. Under Section 139(5) of the Income Tax Act, 1961, taxpayers are given the opportunity to file a revised income tax return to rectify errors, including missed income, deductions, or miscalculations.
Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal said in November that the I-T Department is undertaking an analysis of wrongful deductions claimed in certain cases, which is why tax returns are being delayed.
Interest on delayed Income Tax Refund should rise from 6% to 18%! In #Budget2026. That should be an ideal punishment for the income tax department for the delay in refund.
People who are looking to file their ITRs for the financial year ended 2024-25 or the assessment year 2025-26 will have to file the same with the authorities on or before 31 December 2025. You will not be able to file a revised or belated ITR after the revision window closes on 31 December 2025.
The income tax department has not yet issued an official clarification regarding the recent problems allegedly faced by taxpayers.
The ITR filing deadline for this year was 16 September. Many taxpayers have indeed received their ITR refund, but others have been puzzled by the delay.