The deadline for filing Income Tax Returns (ITR) for the Assessment Year 2024-25 is fast approaching on September 15, 2025. As of September 11, over 5.47 crore returns have been filed, with 3.66 crore already processed. However, many taxpayers are experiencing delays in receiving their refunds. Understanding the reasons behind these delays and the steps you can take is crucial.
Reasons for Refund Delays
While most refunds are processed within 4-5 weeks, several factors can cause delays:
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E-verification Pending: Processing begins only after your ITR is e-verified.
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Bank Account Validation Issues: Ensure your bank account is pre-validated and linked to your PAN.
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Discrepancies in Form 26AS and ITR: Mismatch in tax credit details can delay processing.
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Minor Data Errors: Incorrect reporting of income or TDS can trigger additional scrutiny.
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Risk-Based Scrutiny: Some returns are selected for detailed checks before refunds are issued.
Tax experts note that during periods of high filing volumes, refunds may take longer even if returns are correctly filed.
What You Can Do
To expedite your refund:
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E-Verify Your ITR: Processing starts only after e-verification.
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Check Processing Status: Monitor the ‘Refund/Demand Status’ on the income tax portal.
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Validate Bank Account: Ensure your account is pre-validated and linked to your PAN.
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Respond Promptly to Notices: Address any mismatch notices from the department to avoid further delays.
Typically, refunds are credited within 4-5 weeks post-processing. If not received during this period, check for any discrepancies or notifications from the Income Tax Department.
Consequences of Missing the September 15 Deadline
Failing to file your ITR by the due date can result in:
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Late Filing Fee: ₹5,000, reduced to ₹1,000 if income is below ₹5 lakh.
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Interest Charges: Under Sections 234A, 234B, and 234C on outstanding tax dues.
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Delayed Refunds: Late filing can postpone the processing of refunds.
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Increased Scrutiny: Belated returns may undergo more detailed examination.
Taxpayers are advised to file their returns promptly to avoid these complications.
Extension Requests and Regional Challenges
Due to recent flooding, technical challenges, and significant changes in GST regulations, tax practitioners in Gujarat are urging the government to extend the ITR filing deadlines. The Gujarat Chamber of Commerce and Industry (GCCI) has proposed extending the deadline for non-audited ITRs from September 15 to October 30, and for audited returns, from October 30 to December 31. Practitioners report delays in the release of the ITR utility, as well as ongoing flood-related disruptions, which have hindered access to offices and internet services. They also cite the rollout of GST 2.0, which requires businesses to update systems and internal processes, placing additional burdens on tax professionals. The situation is compounded by AIS mismatches and ongoing technical issues with the income tax portal. The Central India Regional Council of ICAI and the Gujarat Sales Tax Bar Association echo these concerns, emphasizing that professionals are overwhelmed and additional time is needed to meet compliance obligations.
Similarly, the Federation of Karnataka Chambers of Commerce & Industry (FKCCI) and the Chartered Accountants Association, Surat (CAAS) have called on the Indian Income Tax Department to extend the September 15, 2025, deadline for filing Income Tax Returns (ITR) for the Assessment Year 2025-2026. These organizations argue that frequent changes to ITR forms and ongoing technical and compliance-related issues are hindering timely ITR filing across the country. Their appeal joins a growing number of similar requests from various taxpayer and consultant groups seeking deadline relief.
Despite these requests, the Income Tax Department has not announced any official extension. Taxpayers are advised to file their returns by the existing deadline to avoid penalties.
With the September 15 deadline fast approaching, taxpayers should ensure their returns are filed correctly, e-verified, and linked to validated bank accounts to avoid refund delays. Most delays are due to procedural checks or verification issues and typically get resolved once all formalities are completed.
Also Read: ITR Due Date: Here’s the Update on the Deadline for Filing Income Tax Returns
