{"id":9225,"date":"2025-06-28T07:16:57","date_gmt":"2025-06-28T07:16:57","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=9225"},"modified":"2025-10-20T18:37:19","modified_gmt":"2025-10-20T18:37:19","slug":"update-on-income-tax-return-processing-transparency","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/","title":{"rendered":"Update on Income tax return\u00a0Processing Transparency"},"content":{"rendered":"<h2 data-start=\"133\" data-end=\"177\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-9226\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/Suscess.jpg\" alt=\"Suscess ITR \" width=\"1280\" height=\"765\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/Suscess.jpg 1280w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/Suscess-300x179.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/Suscess-1024x612.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/Suscess-768x459.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/Suscess-800x478.jpg 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69ee5a70e2be8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69ee5a70e2be8\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/#Update_on_Income_Tax_Return_Processing_Transparency\" title=\"Update on Income Tax Return Processing Transparency\">Update on Income Tax Return Processing Transparency<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/#Income_Tax_Return_Filing_Deadline_Extended_to_September_15_2025_Non-Audit_Cases\" title=\"Income Tax Return Filing Deadline Extended to September 15, 2025 (Non-Audit Cases)\">Income Tax Return Filing Deadline Extended to September 15, 2025 (Non-Audit Cases)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/#Why_the_Income_tax_extension\" title=\"Why the Income tax extension?\">Why the Income tax extension?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/#Implications_for_Taxpayers\" title=\"Implications for Taxpayers\u00a0\">Implications for Taxpayers\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/#Our_Recommendation_File_After_June_15\" title=\"Our Recommendation: File After June 15 :\u00a0\">Our Recommendation: File After June 15 :\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/#Still_Waiting_for_AY_2023%E2%80%9324_ITR_Refund_Theres_Good_News\" title=\"Still Waiting for AY 2023\u201324 ITR Refund? There\u2019s Good News!\">Still Waiting for AY 2023\u201324 ITR Refund? There\u2019s Good News!<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/#Who_Benefits_From_This_Extension\" title=\"Who Benefits From This Extension?\">Who Benefits From This Extension?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/#Possible_Outcomes_Once_Processed\" title=\"Possible Outcomes Once Processed:\">Possible Outcomes Once Processed:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/#Important_Notes_Exceptions\" title=\"Important Notes &amp; Exceptions:\">Important Notes &amp; Exceptions:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/#What_You_Should_Do\" title=\"What You Should Do:\">What You Should Do:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/#Relief_for_Millions\" title=\"Relief for Millions:\">Relief for Millions:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/#Income_Tax_Refunds_Drop_16_%E2%80%94_Whats_the_Bigger_Picture\" title=\"Income Tax Refunds Drop 16% \u2014 What\u2019s the Bigger Picture?\">Income Tax Refunds Drop 16% \u2014 What\u2019s the Bigger Picture?<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/#I-T_Refunds_Drop_16_Due_to_Checks_Against_Frauds_%E2%80%93_Positives\" title=\"I-T Refunds Drop 16% Due to Checks Against Frauds &#8211; Positives\">I-T Refunds Drop 16% Due to Checks Against Frauds &#8211; Positives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/#Reason_Behind_the_Fall\" title=\"Reason Behind the Fall\">Reason Behind the Fall<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/#The_move_enhances_transparency_and_compliance_but_may_slow_down_genuine_refund_processing\" title=\"The move enhances transparency and compliance, but may slow down genuine refund processing.\">The move enhances transparency and compliance, but may slow down genuine refund processing.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.caindelhiindia.com\/blog\/update-on-income-tax-return-processing-transparency\/#Impact_on_Tax_Collections\" title=\"Impact on Tax Collections \">Impact on Tax Collections <\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 data-start=\"133\" data-end=\"177\"><span class=\"ez-toc-section\" id=\"Update_on_Income_Tax_Return_Processing_Transparency\"><\/span><span style=\"color: #000080;\"><strong data-start=\"133\" data-end=\"177\">Update on Income Tax Return Processing Transparency<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"179\" data-end=\"356\">Just two days ago, during our live session, we highlighted that <em data-start=\"243\" data-end=\"256\">only 95k I<\/em>TRs had been processed\u2014despite over <em data-start=\"315\" data-end=\"324\">55 lakh<\/em> filings already being recorded. Now, the Income Tax Department has removed the Income tax return processed count from its official website.<\/p>\n<p data-start=\"460\" data-end=\"706\">This move raises serious concerns. As Income tax professionals &amp; responsible Income tax taxpayers, Taxpayer firmly demand transparency. Accurate, real-time disclosure of return processing data is crucial to building trust and ensuring accountability in Income tax system. Moreover, Taxpayer strongly urges the Tax dept to expedite the enablement of ITR-2, ITR-3, ITR-5, ITR-6, and ITR-7 to ensure all income tax taxpayer categories can comply within the due timelines.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-9228\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/ITR-2.jpg\" alt=\"\" width=\"1219\" height=\"1162\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/ITR-2.jpg 1219w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/ITR-2-300x286.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/ITR-2-1024x976.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/ITR-2-768x732.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/ITR-2-800x763.jpg 800w\" sizes=\"(max-width: 1219px) 100vw, 1219px\" \/><\/p>\n<h3 data-start=\"202\" data-end=\"295\"><span class=\"ez-toc-section\" id=\"Income_Tax_Return_Filing_Deadline_Extended_to_September_15_2025_Non-Audit_Cases\"><\/span><span style=\"color: #000080;\">Income Tax Return Filing Deadline Extended to September 15, 2025 (Non-Audit Cases)<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"297\" data-end=\"477\">The Central Board of Direct Taxes has officially extended the due date for filing Income Tax Returns (ITRs) for Assessment Year 2025\u201326 (FY 2024\u201325) :\u00a0New Deadline: September 15, 2025,\u00a0this extention is applies to\u00a0Salaried individuals and taxpayers not liable for audit. The extension is a welcome move to support accurate, stress-free compliance amid system transitions. Use the additional time to ensure all your documents and financial details are in place before submission.<\/p>\n<h3 data-start=\"611\" data-end=\"640\"><span class=\"ez-toc-section\" id=\"Why_the_Income_tax_extension\"><\/span><span style=\"color: #000080;\"><strong data-start=\"618\" data-end=\"640\">Why the Income tax extension?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"642\" data-end=\"730\">According to the CBDT, the following key challenges necessitated the deadline extension:<\/p>\n<ol data-start=\"732\" data-end=\"1107\">\n<li data-start=\"732\" data-end=\"833\">\n<p data-start=\"735\" data-end=\"833\">Revised ITR Forms: Major revisions aimed at simplifying compliance and improving transparency.<\/p>\n<\/li>\n<li data-start=\"834\" data-end=\"951\">\n<p data-start=\"837\" data-end=\"951\">Utility Development &amp; Testing: Time required for seamless integration and testing of updated filing utilities.<\/p>\n<\/li>\n<li data-start=\"952\" data-end=\"1107\">\n<p data-start=\"955\" data-end=\"1107\">Delayed TDS Credit Visibility: Reflection of TDS (Form 26AS\/TRACES) and related data began only in early June, limiting the effective filing window.<\/p>\n<\/li>\n<\/ol>\n<h3 data-start=\"1114\" data-end=\"1151\"><span class=\"ez-toc-section\" id=\"Implications_for_Taxpayers\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1121\" data-end=\"1151\">Implications for Taxpayers\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"1153\" data-end=\"1330\">\n<li data-start=\"1153\" data-end=\"1223\">\n<p data-start=\"1155\" data-end=\"1223\">You now have extra time to file your return without penalty.<\/p>\n<\/li>\n<li data-start=\"1224\" data-end=\"1330\">\n<p data-start=\"1226\" data-end=\"1330\">However, early filing is not always ideal unless all relevant data (TDS, SFT, Form 16) is available.<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"1337\" data-end=\"1381\"><span class=\"ez-toc-section\" id=\"Our_Recommendation_File_After_June_15\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1343\" data-end=\"1381\">Our Recommendation: File After June 15 :\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1337\" data-end=\"1381\">We strongly advise taxpayers to wait until after June 15, 2025, to file their returns for the following reasons is Form 16\/16A<span style=\"font-size: 16px;\"> (TDS certificates) are typically issued by June 15. &amp; <\/span>SFT (Statement of Financial Transactions)<span style=\"font-size: 16px;\"> data and Form 26AS are also updated around this time. and <\/span><span style=\"font-size: 16px;\">Filing early without these documents may lead to <\/span>mismatches<span style=\"font-size: 16px;\">, delayed refunds, or rectification filings.\u00a0<\/span><\/p>\n<h2 data-start=\"222\" data-end=\"292\"><span class=\"ez-toc-section\" id=\"Still_Waiting_for_AY_2023%E2%80%9324_ITR_Refund_Theres_Good_News\"><\/span><span style=\"color: #000080;\"><strong data-start=\"229\" data-end=\"292\">Still Waiting for AY 2023\u201324 ITR Refund? There\u2019s Good News!<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"294\" data-end=\"579\">In a CBDT circular dated June 9, 2025, the Income Tax Department has announced that all valid and unprocessed ITRs for Assessment Year 2023\u201324 (FY 2022\u201323) will be processed by November 30, 2025 \u2014 even though the standard processing deadline (December 31, 2024) has passed.<\/p>\n<h3 data-start=\"586\" data-end=\"629\"><span class=\"ez-toc-section\" id=\"Who_Benefits_From_This_Extension\"><\/span><span style=\"color: #000080;\"><strong data-start=\"592\" data-end=\"629\">Who Benefits From This Extension?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"631\" data-end=\"786\">\n<li data-start=\"631\" data-end=\"699\">\n<p data-start=\"633\" data-end=\"699\">Taxpayers who filed their ITRs on or before July 31, 2023, and\u00a0whose returns were stuck in the system without processing, refund, or intimation, so no\u00a0action is required on your part if your return was correctly filed and verified.<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"882\" data-end=\"926\"><span class=\"ez-toc-section\" id=\"Possible_Outcomes_Once_Processed\"><\/span><strong data-start=\"889\" data-end=\"926\"><span style=\"color: #000080;\">Possible Outcomes Once Processed<\/span>:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"928\" data-end=\"1089\">\n<li data-start=\"928\" data-end=\"979\">\n<p data-start=\"931\" data-end=\"979\">Refund with interest (at 0.5% per month)<\/p>\n<\/li>\n<li data-start=\"980\" data-end=\"1029\">\n<p data-start=\"983\" data-end=\"1029\">Tax demand if discrepancies are found<\/p>\n<\/li>\n<li data-start=\"1030\" data-end=\"1089\">\n<p data-start=\"1033\" data-end=\"1089\">No refund or demand, just intimation of processing<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"1096\" data-end=\"1136\"><span class=\"ez-toc-section\" id=\"Important_Notes_Exceptions\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1103\" data-end=\"1136\">Important Notes &amp; Exceptions:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"1138\" data-end=\"1474\">\n<li data-start=\"1138\" data-end=\"1204\">\n<p data-start=\"1140\" data-end=\"1204\">No refund will be issued if PAN is not linked with Aadhaar<\/p>\n<\/li>\n<li data-start=\"1205\" data-end=\"1314\">\n<p data-start=\"1207\" data-end=\"1314\">Returns selected for scrutiny or delayed due to errors (e.g. wrong bank details) are excluded<\/p>\n<\/li>\n<li data-start=\"1315\" data-end=\"1381\">\n<p data-start=\"1317\" data-end=\"1381\">No new tax demands under Section 143(1) can now be raised<\/p>\n<\/li>\n<li data-start=\"1382\" data-end=\"1474\">\n<p data-start=\"1384\" data-end=\"1474\">Reassessment (Sec. 148) may still happen if there is evidence of undisclosed income<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"1481\" data-end=\"1512\"><span class=\"ez-toc-section\" id=\"What_You_Should_Do\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1489\" data-end=\"1512\">What You Should Do:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"1514\" data-end=\"1783\">\n<li data-start=\"1514\" data-end=\"1562\">\n<p data-start=\"1516\" data-end=\"1562\">\u00a0Ensure PAN-Aadhaar linking is complete<\/p>\n<\/li>\n<li data-start=\"1563\" data-end=\"1633\">\n<p data-start=\"1565\" data-end=\"1633\">\u00a0Ensure your bank account is validated on the e-filing portal<\/p>\n<\/li>\n<li data-start=\"1634\" data-end=\"1696\">\n<p data-start=\"1636\" data-end=\"1696\">\u00a0Periodically check the ITR portal for status updates<\/p>\n<\/li>\n<li data-start=\"1697\" data-end=\"1783\">\n<p data-start=\"1699\" data-end=\"1783\">\u00a0Do not file complaints or revised returns if everything was filed correctly<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"1790\" data-end=\"1821\"><span class=\"ez-toc-section\" id=\"Relief_for_Millions\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1797\" data-end=\"1821\">Relief for Millions:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1822\" data-end=\"2032\">This move offers relief to taxpayers who&#8217;ve been waiting for over a year for closure or refunds. It also helps the system clear backlogs while ensuring eligible taxpayers receive what\u2019s due \u2014 <strong data-start=\"2014\" data-end=\"2031\">with interest<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Income_Tax_Refunds_Drop_16_%E2%80%94_Whats_the_Bigger_Picture\"><\/span><span style=\"color: #000080;\"><strong>Income Tax Refunds Drop 16% \u2014 What\u2019s the Bigger Picture?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Between April and 12th October, income tax refunds fell by nearly 16%, dropping from INR 2.4 lakh crore to INR 2 lakh crore. In contrast, net direct tax collections rose 6.3%, reaching INR 11.9 lakh crore \u2014 largely due to lower refund outflows.<\/p>\n<ul>\n<li>Refunds down 16% between April and October 12, 2025.<\/li>\n<li>Gross direct tax collections rose 2.4% to INR 13.9 lakh crore, supported by lower refund outflows.<\/li>\n<li>Corporate tax collections grew 4.9%, while non-corporate tax rose 0.5%.<\/li>\n<li>Refunds declined from INR 2.4 lakh crore (FY25) to INR 2 lakh crore (FY26).<\/li>\n<li>Non-corporate refunds almost halved \u2014 from INR 1.2 lakh crore to INR 62,359 crore.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"I-T_Refunds_Drop_16_Due_to_Checks_Against_Frauds_%E2%80%93_Positives\"><\/span><span style=\"color: #000080;\"><strong>I-T Refunds Drop 16% Due to Checks Against Frauds &#8211; Positives<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Stronger fraud prevention and data matching<\/li>\n<li>Boost to tax buoyancy and revenue stability<\/li>\n<li>Better liquidity for the government<\/li>\n<li>Encouragement of accurate and transparent disclosures<\/li>\n<\/ul>\n<p><strong>What\u2019s Driving This Shift? <\/strong>: The Income Tax Department has reportedly introduced stricter scrutiny and additional verification layers to detect fraudulent or inflated refund claims. While this improves tax compliance and fiscal integrity, it also raises important questions about the refund experience for genuine taxpayers.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Reason_Behind_the_Fall\"><\/span><span style=\"color: #000080;\"><strong>Reason Behind the Fall<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\u201cDue to automated validation and additional risk-assessment checks at CPC to prevent incorrect refund claims, some refunds are taking additional time,\u201d said a tax official. The Central Board of Direct Taxes (CBDT) has introduced:<\/p>\n<ul>\n<li>Automated validation filters for refunds above a specified threshold.<\/li>\n<li>Additional risk-based assessments before processing high-value claims.<\/li>\n<li>These measures aim to curb fraudulent refunds and ensure data integrity in the system.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"The_move_enhances_transparency_and_compliance_but_may_slow_down_genuine_refund_processing\"><\/span><span style=\"color: #000080;\"><strong>The move enhances transparency and compliance, but may slow down genuine refund processing.<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Businesses and salaried taxpayers could see temporary liquidity strain due to delayed refund credits.<\/li>\n<li>Stronger backend verification points to the government\u2019s push for data-driven tax administration and fraud risk reduction.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Impact_on_Tax_Collections\"><\/span><span style=\"color: #000080;\"><strong>Impact on Tax Collections <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Net direct tax collections increased 6.3% to INR 11.9 lakh crore this year.<\/li>\n<li>The fall in refunds directly boosted the net collection figure.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Concerns to Watch<\/strong><\/span><\/p>\n<ul>\n<li>Are genuine taxpayers facing slower refunds?<\/li>\n<li>Is working capital getting locked up for businesses?<\/li>\n<li>Could delayed refunds hurt MSMEs and salaried individuals?<\/li>\n<li>Are IT systems scaling fast enough to handle deeper verification?<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Update on Income Tax Return Processing Transparency Just two days ago, during our live session, we highlighted that only 95k ITRs had been processed\u2014despite over 55 lakh filings already being recorded. Now, the Income Tax Department has removed the Income tax return processed count from its official website. This move raises serious concerns. As Income &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[142],"tags":[1191],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9225"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=9225"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9225\/revisions"}],"predecessor-version":[{"id":9539,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9225\/revisions\/9539"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=9225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=9225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=9225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}