IT refunds down 50% for non-corporate taxpayers: What it means
Between April and October 12, 2025, income tax refunds in India dropped by 16%, falling from over ₹2.4 lakh crore last year to just above ₹2 lakh crore this year.
This tighter approach has helped the government's net direct tax collections grow by 6.3%, hitting nearly ₹11.9 lakh crore.
Refunds for non-corporate taxpayers have nearly been cut in half
Non-corporate taxpayers—think salaried folks and small businesses—have seen their refunds nearly cut in half, while corporate refunds actually went up by over 16%.
The government's new AI-powered checks are being used to weed out fake claims, and non-corporate refunds have seen the steepest drop.
This also means genuine refunds might take longer.
If you're waiting on a refund, expect more scrutiny
If you're waiting on a refund, expect more scrutiny and possible delays.
The government says these changes will make the system fairer and more efficient long-term, but for now, it's a tougher road for regular taxpayers looking for their money back.