Income Tax Refund: Big News! Taxpayers may face delay in getting refund, these are the reasons

The delay is mainly due to major structural changes in the forms and ongoing technical upgrades in the backend systems. The ITR-2 and ITR-3 utilities i.e. the forms are still not live on the Income Tax e-filing portal. Note that interest received by taxpayers on refund is considered as income from other sources and is taxable

This year, many taxpayers may get their income tax refund late. It is being said that the main reason for this is the delay in the release of ITR utilities on the Income Tax Department portal and the backend system upgrade. ITR-2 and ITR-3 utilities i.e. forms are still not live on the Income Tax e-filing portal. Delay in their release means delay in the entire refund process for taxpayers filing them. However, no official statement has been issued yet on the delay in the release of refund.

This ITR-2 form is applicable for such persons who are not eligible for ITR-1 and for HUF i.e. Hindu Undivided Family. Their income does not come under the head profits or gains of business or profession. ITR-3 form is applicable for such persons and HUF whose income comes under the head profits or gains of business or profession. These people may not be eligible to file ITR-1, 2 or 4.

What do experts say

Sandeep Sehgal, Partner-Tax at AKM Global, says the delay is mainly due to significant structural changes in the forms and ongoing technical upgrades in the backend systems. The e-filing site is not yet showing updated data on return processing or refunds. He further said that the delay in the release of ITR-2 and ITR-3 utilities and the lack of published data may delay the processing and issuance of refunds for the current assessment year. Naveen Wadhwa, Vice President, Taxmann, also believes that any delay in the release of forms means a delay in the payment of refunds.

This time the deadline for filing ITR in these cases is 15 September

This time there is no hurry to file Income Tax Return (ITR) as the deadline for filing returns for non-audit cases has been extended to 15 September 2025. Let us tell you that this time taxpayers will file ITR for the financial year 2024-25 and assessment year 2025-26. Taxpayers who have paid more than 110% of the tax due on them will get interest at the rate of 0.5% per month. But those who have paid between 100% and 110% will not get any interest. Keep in mind that the interest received by taxpayers on refund is considered as “income from other sources” and it is taxable.

Taxpayers should be ready

Experts advise that taxpayers should keep an eye on the release of ITR-2 and ITR-3 forms and file their returns without delay when it is released. Timely e-verification and accurate information can prevent further delays.

The post Income Tax Refund: Big News! Taxpayers may face delay in getting refund, these are the reasons first appeared on informalnewz.

News