ITR Refund Status 2025: Why CBDT Is Red-Flagging Claims

ITR Refund Status 2025: Delays Due to ‘Red-Flagged’ Claims, Says CBDT Chairman

Many taxpayers checking their ITR Refund Status 2025 are noticing unexpected delays. The Central Board of Direct Taxes (CBDT) has now clarified the key reason behind this slowdown.

According to the CBDT Chairman, the system has red-flagged several refund claims due to discrepancies, which has triggered additional verification before releasing the refunds.

“In this blog, we explain why the department holds refunds, how the system detects red-flagged claims, and what you can do to speed up your ITR refund in 2025.”

Why ITR Refunds Are Being Delayed in 2025

The CBDT has increased automated checks to detect:

• Mismatch between income declared vs. AIS/26AS

• Fake or inflated deductions

• Incorrect TDS claims

• High-value transactions not reported in the return

• Suspicious refund patterns flagged by AI-based tools

When the system identifies these issues, the claim is red-flagged, and the refund is put on hold until manual or detailed verification is completed.

How Long Will a “Red-Flagged” Refund Take?

Refunds flagged for discrepancies may take longer than the usual 20–45 days. Processing time depends on:

• The severity of mismatch

• Pending clarifications from the taxpayer

• Additional documentation required

How to Check Your ITR Refund Status

You can easily track your refund:

1. On the Income Tax Portal

• Log in

• Go to e-File → View Filed Returns

• Check refund status under your ITR

2. On the NSDL Refund Tracking Page

• Enter PAN and Assessment Year

• View real-time refund updates

How to Avoid Getting Your Refund “Red-Flagged”

• Report correct income from all sources

• Match your ITR with AIS, 26AS, Form 16

• Avoid inflated or incorrect deductions

• Validate your bank details

• File early and verify immediately

Conclusion

The Income Tax Department is tightening scrutiny to reduce fraudulent refund claims. If your ITR refund is delayed, ensure that your return has no mismatches and stay updated through the portal.

Need Help Fixing Your ITR or Refund Delay?

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