The Income Tax Department has triggered concern among taxpayers by dispatching a wave of SMS and email alerts for Assessment Year 2025-26. These communications inform recipients that their refunds have been temporarily paused as part of a risk management process initiated due to identified mismatches in their Income Tax Return (ITR) filings.
Taxpayer Frustration Over Vague Alerts
Several taxpayers have taken to social media platform X (formerly Twitter) to share screenshots of these alerts and voice their frustration. The primary grievance centers on the perceived vagueness of the messages and the lack of detailed follow-up communication. One user shared a screenshot where the department stated the processing of the return was "put on hold after it was flagged under the risk management process due to certain discrepancies in the refund claim." The taxpayer argued such alerts create undue stress, leaving individuals uncertain if their refunds are merely delayed or if a full scrutiny might be initiated.
Another user, identifying as a Chartered Accountant, highlighted that even those claiming genuine deductions are receiving these notices. Their shared screenshot indicated the hold was due to a significant mismatch between the exemption claimed in the ITR and the amounts reported by the employer in Form 16, leading to a high refund claim. The user questioned the logic, asking if an employee who didn't report a deduction to their employer but legitimately claimed it in their ITR should be considered a tax evader.
Racing Against the Revised Return Deadline
The timing of these alerts is particularly critical for taxpayers. The department's emails point out that the deadline for filing a revised return is 31 December 2025. This allows taxpayers to correct errors such as missed income, incorrect TDS claims, or unclaimed deductions. The communication also notes that an updated return can be filed after 1 January 2026, but this would incur additional tax liabilities.
Some taxpayers have complained that after a considerable delay in processing, they are being given very little time—sometimes just a week—to revisit and correct their returns before the year-end deadline. Calls have emerged on social media for an extension of the revised ITR due date this year, citing notable processing delays.
Refund Delays and Official Stance
These developments come when many taxpayers were expecting their refunds before the year closes. While the ITR filing deadline for the year was 16 September, and many have received refunds, others now face uncertainty. Addressing the broader issue of refund delays, Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal said in November that the department is analyzing wrongful deductions claimed in certain cases, which is contributing to the holdup. He indicated that most remaining refunds are likely to be released by December.
The current batch of alerts appears to be a targeted action under this ongoing analysis. The department maintains these are routine communications aimed at ensuring accuracy in tax filings. However, for recipients, the experience is one of anxiety and confusion, compounded by the pressing deadline to rectify any discrepancies in their submitted returns.
