Why are my income tax refunds delayed in India?

The CBDT is investigating wrongful deductions claimed in some tax returns, leading to delays in processing certain refunds.

What is the CBDT doing about high-value tax deductions?

The CBDT is scrutinizing 'high-value' or 'red-flagged' deductions and has encouraged taxpayers to file revised returns if mistakes were made.

Has the number of tax appeals decreased in India?

No, the CBDT has disposed of over 40% more appeals this year compared to last year, aiming to reduce litigation.

Home / Business and Economy / Income Tax Dept Flags Wrongful Deductions

Income Tax Dept Flags Wrongful Deductions

27 Nov

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Summary

Tax department investigating wrongful deductions claimed by taxpayers.
Refund issuances dropped 18% between April and November 10.
Over 40% more appeals disposed of this year compared to last year.

Income Tax Dept Flags Wrongful Deductions

The Central Board of Direct Taxes (CBDT) is actively scrutinizing income tax refund claims for FY 2024-2025 due to identified wrongful deductions. As of November 10, refund issuances have decreased by approximately 18%, totaling over ₹2.42 lakh crore. This dip is attributed partly to a decrease in refund claims, even as Tax Deducted at Source (TDS) rates were rationalized.

The department has identified certain "high-value" or "red-flagged" refund claims and has advised taxpayers to submit revised returns if any omissions were made. This measure aims to ensure accuracy and compliance in tax filings, preventing unjustified deductions from impacting the fiscal process.

In parallel, the CBDT is intensifying efforts to reduce direct tax litigation. Appellate authorities are working diligently, resulting in a disposal rate of over 40% more appeals this year compared to the previous one. The department anticipates a substantial increase in resolved cases by the year's end.