ITR deadline Extend: Know the new rules, if your refund is delayed

ITR deadline Extend: As the Income Tax Return (ITR) filing deadline for the financial year 2024-25 (assessment year 2025-26) approaches, many taxpayers are awaiting their refunds. ITR deadline Extend: Know the new rules, if your refund is delayed.

Here’s a breakdown of the new rules, what to do if your refund is delayed, and the cases that would attract mandatory scrutiny.

ITR Refund Status: What to Check

The deadline for filing ITR for non-audit cases was recently extended to September 15, 2025. While many have filed their returns, the processing and refund issuance take time.

e-Verification is Key: Your ITR is only considered valid after it is e-verified. The processing of your return and the initiation of any refund process begin only after this step.

Track Your Status: You can check the status of your ITR and refund on the Income Tax e-filing portal (incometax.gov.in) and the NSDL website (tin.tin.nsdl.com).

Common Reasons for Delay: If your refund is delayed, it could be due to:

Incorrect or invalidated bank account details (mismatched IFSC code, etc.).

A mismatch between the information in your ITR and Form 26AS or the Annual Information Statement (AIS).

Outstanding tax demands from previous years, which may be adjusted against your refund.

A manual error in your tax return.

New Rules and Mandatory Scrutiny for FY 2025-26

The Central Board of Direct Taxes (CBDT) has issued guidelines for the mandatory selection of returns for scrutiny in the financial year 2025-26. This is a targeted approach to focus on high-risk cases.

Here are the cases that will be mandatorily selected for complete scrutiny:

1. Search and Seizure Cases: ITRs of individuals or entities where a search has been conducted under Section 132 or where a requisition was made under Section 132A.

2. Survey Cases: Taxpayers whose premises were subject to a survey under Section 133A on or after April 1, 2023.

3. Claiming Exemption after Registration Cancellation: Trusts and institutions that have had their registration cancelled but continue to claim tax exemptions.

4. Information from Investigating Agencies: Cases flagged by credible and specific information on tax evasion provided by government departments or intelligence agencies.

5. Repeated Income Additions: Cases where significant income additions (exceeding Rs 50 lakh in metro cities or Rs 20 lakh in other regions) were made in previous assessments and have not been overturned on appeal.

Key Points to Remember:

No Random Scrutiny: Many returns are selected through a Computer Assisted Scrutiny Selection (CASS) system. However, the cases listed above will be subject to mandatory scrutiny, regardless of their risk profile.

Notice and Deadline: If your ITR is selected for scrutiny, a notice will be issued under Section 143(2) of the Income Tax Act. The deadline for issuing this notice for returns filed in FY 2024-25 is June 30, 2026.

Stay Prepared: If your case falls into any of the mandatory scrutiny categories, it is essential to keep all your supporting documents (bank statements, investment proofs, etc.) ready and respond promptly to any notices from the department.

Also Read: September 1: these major financial rules changed from today