Income Tax Refund 'On Hold'? Know Possible Reasons And What You Should Do Next
Many taxpayers have received SMS and email alerts from the Income Tax Department about the delay in refunds due to discrepancies or mismatches in ITR filings.
The Income Tax Department is reportedly holding back income tax return (ITR) refunds for several taxpayers due to claim mismatches. Many taxpayers have received SMS and email alerts from the I-T Department about the delay in refunds due to discrepancies or mismatches in ITR filings.
On social media, many taxpayers have pointed out that such notices have left them confused. With less than a week left for filing revised ITR, taxpayers are upset about the short time left to act. The last date to file a revised return is Dec. 31, 2025.
The taxation body has put refunds on hold for the ITRs flagged under the risk management process due to discrepancies or mismatches in the income and deductions.
The refunds for certain ITRs have also been delayed due to enhanced scrutiny for higher refund claims, especially under the old tax regime.
Amid rising complaints, the Income Tax Department has clarified that these emails are only routine checks to ensure correct filings.
In an X post on Tuesday, the I-T Department said, “Launch of a data-driven NUDGE campaign for AY 2025–26, encouraging taxpayers to voluntarily review deduction/exemption claims identified as potentially ineligible through risk analytics. The outreach is advisory and reflects a trust-first approach, enabling voluntary correction, wherever required.”
Income Tax authorities are sending SMS and email alerts to affected taxpayers under its “Non-intrusive Usage of Data to Guide and Enable (NUDGE)” campaign. These messages ask taxpayers to review and correct discrepancies in their returns before the revised ITR filing deadline of Dec. 31, 2025.
However, many taxpayers pointed out that the I-T Department is even flagging genuine deductions in its emails.
If you have received a similar alert, it is advisable to review your ITR returns to avoid any inconvenience or risk of penalties.
In case your ITR needs to be updated, ensure that the belated or revised return is filed on or before the Dec. 31 deadline.
Steps To File Belated/Revised Returns:
1. Visit the Income Tax e-filing portal: incometax.gov.in.
2. Log in using your PAN, password, and captcha.
3. Click e-File and select Income Tax Return.
4. Choose the assessment year and ITR form.
5. Select Filing Type as Original/Revised Return.
6. Choose Prepare and Submit Online and select Revised return under section 139(5).
7. Enter the acknowledgement number and date of the original return, then submit.
According to the I-T Department, taxpayers with genuine deductions and exemption claims made in accordance with law are not required to take any action.
