Income tax refunds delayed over Form 16 mix-ups
Waiting on your tax refund? The Income Tax Department has paused processing for AY 2025-26 if there's a mismatch between what you claimed and what's in your Form 16 from your employer.
If you're flagged, no refund until you fix the issue. Heads up—the deadline to file corrections is December 31, 2025.
Why are refunds getting stuck?
Refunds usually get held up when people claim deductions (like under sections 80C, 80D, or HRA) that aren't listed in their Form 16.
Other common reasons: switching tax regimes just to get a refund or reporting income that doesn't match official records.
How can you sort it out?
Double-check your Form 16, Form 26AS, and ITR details online.
If you receive an AIS mismatch notice, you may need to upload proof like bank statements or TDS certificates through the AIS feedback system.
If you identify an error in your return, filing a revised return before December 31, 2025, can help you avoid additional tax liability and penalties in the new year.