Business
Still Waiting For Your ITR Refund? Tax Dept Might Cut It To Clear Your Old Dues
New Delhi: For many taxpayers across India, the wait for income tax refunds has been unusually long this year. According to the Income Tax Department’s website, nearly 1.23 crore income tax returns (ITRs) are still pending for processing, out of the 3.98 crore returns filed so far. While 2.74 crore ITRs have already been cleared as of August 31, lakhs of taxpayers are yet to see refunds credited to their accounts. With the extended deadline for filing ITRs now set at September 15, 2025, for those not requiring an audit, the pressure is building as only two weeks remain. But for those who have already filed, the bigger question is: why is the refund process so slow?
One key reason lies in adjustments for past tax arrears
If a taxpayer has outstanding dues from earlier years or pending appeals, the department may offset the refund against those arrears, delaying or reducing the payout. Similarly, large or suspicious refund claims trigger deeper scrutiny. In such cases, taxpayers are often asked to submit additional documents, which naturally prolongs the process.
Another factor is the seasonal backlog
The peak filing season creates a flood of cases for the department, and despite automation, manual checks in sensitive cases lead to bottlenecks. Adding to this are technical glitches, with many taxpayers complaining that their AIS (Annual Information Statement) and Form 26AS data don’t match, leaving refunds stuck.
The late release of ITR forms also played a role
While ITR-1 and ITR-4 were available in May, ITR-2 and ITR-3 came only in July, delaying filings and, in turn, refunds. Issues with **bank account validation—such as incorrect account numbers, inactive accounts, or incomplete pre-validation on the portal—have further stalled payouts.
Another common mistake is failure to e-verify returns
Without Aadhaar OTP verification, net banking confirmation, or sending ITR-V to CPC Bengaluru, the return remains incomplete, and the refund cannot be processed. Finally, discrepancies between declared income and AIS/Form 26AS data often put refunds on hold until the department finishes its checks.
The government is aware of these delays
Finance Minister Nirmala Sitharaman has urged tax officials to speed up refunds and restore taxpayer confidence. The deadline for processing older returns (AY 2023–24) has also been extended to November 30, 2025, raising hopes for quicker resolutions. But for now, taxpayers must remain patient—and double-check their filings—to avoid unnecessary refund roadblocks.
NEW DELHI: The West Asia conflict is pushing govt to look at a faster transition towards renewable energy, including the possibility of increasing ethanol blending in petrol from 20-25%, although in a calibrated manner. This will come along with increased refining capacity within the country, so that there is a buffer in the system and greater domestic resilience, those familiar with the discussions said, pointing out that sustaining refineries at 100% capacity is not sustainable.While Barmer refinery has begun operations, expansion at Numaligarh is underway and work on integrated refineries on the west coast is also under focus. Apart from a mega refinery in Maharashtra, a new facility in Gujarat is also planned.Officials said rising use of renewables, biofuels and hydrogen in the energy mix was no longer just an environmental issue, but a strategic necessity in a situation like the present one, where the military conflict in West Asia has disrupted global energy supplies, triggering a supply crisis and a surge in oil and gas prices.According to officials, 20% ethanol blending has helped India save 4.5 crore barrels of crude annually and reduce foreign exchange outflow by around ₹1.5 lakh crore so far. Given the concerns over fuel efficiency and impact on vehicles, govt is expected to take a gradual approach that addresses the anxiety on ethanol blending. The third pillar on energy is expanding the strategic petroleum reserves.
Millions of car finance payouts are in jeopardy after the UK’s financial watchdog indicated its compensation scheme faces significant delays, changes, or even collapse.
This uncertainty stems from four legal challenges against the Financial Conduct Authority (FCA).
The FCA has advised motor finance firms to prepare for the possibility that its redress scheme, which could see an average payout of £829, may not proceed.
The regulator stated that while a hearing date is unclear, these cases are unlikely to be heard before October.
In the meantime, it is in discussions about the “possibility of suspending some elements” of its compensation scheme, while still urging lenders to prepare for payouts.
But the regulator said it was also considering its options should parts of the scheme be quashed by the courts, including proceeding with a revised version or asking lenders to plan for a scenario where “there would be no scheme”.
This could mean lenders need to be ready to respond to complaints from car finance customers individually, rather than under the rules of an industry-wide programme set by the FCA.
“Many people will be frustrated that the legal action will delay payouts due to begin this year,” the FCA said.
“We remain committed to ensuring consumers receive any compensation owed as promptly as possible.”
The FCA set out the final details of its compensation scheme in March, which it estimated could cost the industry about £9.1 billion in total.
It had been expecting millions of claims to be paid out this year and the vast majority settled by the end of 2027.
The financial services arms of carmakers Volkswagen and Mercedes-Benz and the car finance arm of French bank Credit Agricole, as well as Consumer Voice, a group representing consumers, are asking the courts to quash the scheme, arguing the rules are unlawful.
“Between the four separate legal challenges, it is claimed in effect that the FCA’s approach to establishing the schemes has been both unduly favourable to consumers and unduly favourable to lenders,” the watchdog said.
At least one claim alleges that the FCA has breached the rights of lenders under the 1998 Human Rights Act, according to the watchdog.
Despite the uncertainty of the legal cases, the watchdog is still advising consumers to complain directly to their lender if they think they might be owed compensation, which they can do for free using a template letter on its website.
The federal government has increased petrol and diesel prices by nearly Rs15 per litre each for the next week.
In a notification issued on Friday, the Petroleum Division said new fuel rates will come into effect from May 9.
The price of petrol has jumped from Rs399.86 to Rs414.78, while the HSD price increased from Rs399.58 to Rs414.58 per litre.
This marks the third consecutive increase in petrol and diesel prices after cumulative hikes of Rs33.28 on petrol and Rs46.16 on diesel over the previous two weeks.
The government has been reviewing petroleum prices every Friday night amid global oil market volatility linked to the US-Iran conflict.
Global oil prices were up more than 1% on Friday after renewed fighting broke out between the US and Iran, threatening a shaky ceasefire and dashing hopes for progress on reopening the Strait of Hormuz, a key oil and gas transit route.
Brent crude futures were up $1.41, or 1.41%, at $101.47 a barrel as of 0123 GMT. West Texas Intermediate (WTI) US crude futures rose by $1.12, or 1.18%, to $95.93 a barrel. At the market open prices had risen by more than 3%.
Petrol is mainly used by commuters in small vehicles, rickshaws and two-wheelers. Higher fuel prices significantly impact the budgets of middle and lower-middle-class households, who rely on petrol for daily travel.
On the other hand, a significant portion of the transport sector relies on high-speed diesel.
Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.
The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.
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