**Income Tax Refunds Delayed Due to Detection of Fake Claims Under Old Tax Regime**
*New Delhi:* If you filed your Income Tax Return (ITR) on or before 16 September 2025 and are expecting a refund, this update is important for you. Many taxpayers have reported delays in receiving their refunds this year. After investigating, the Income Tax Department has identified the primary reason behind these delays.
### Fake Tax Deductions Discovered Under Old Tax Regime
The department uncovered that a significant number of taxpayers made incorrect claims for tax deductions, predominantly under the Old Tax Regime. These fraudulent claims included fake medical expenses and bogus donations. Leveraging advanced computer systems and Artificial Intelligence (AI), the department was able to detect these false claims effectively.
### Fake Claims Worth Rs 700 Crore Detected
The Income Tax Department caught fake claims amounting to approximately Rs 700 crore. Most of these fraudulent claims were made by individuals earning more than Rs 20 lakh per annum. This has consequently slowed down the refund processing this year.
A senior official revealed that many taxpayers who previously made fake claims are repeating the same fraudulent activities this year.
### Why Are Refunds Taking More Time?
Refund processing is taking longer than usual due to ongoing investigations into these false refund claims. Delays are especially pronounced in cases where the refund amount exceeds Rs 10 lakh.
Compared to last year, the total refunds issued have decreased by 24 percent. Up to 17 September, the department has released Rs 1.60 lakh crore in refunds, whereas last year it was Rs 2.10 lakh crore.
### Actions Taken by the Income Tax Department
The Income Tax Department launched a nationwide investigation in July targeting individuals who filed fake claims and incorrect tax deductions. As a result:
– 30,161 taxpayers declared foreign assets worth Rs 29,208 crore and foreign income totaling Rs 1,089 crore.
– Taxpayers withdrew fake claims amounting to Rs 963 crore.
– An additional Rs 409.50 crore in tax has been deposited by these taxpayers.
### Notices Being Sent to Taxpayers
The department has begun issuing notices to taxpayers who made incorrect claims, giving them an opportunity to rectify their tax returns. A senior official stated that efforts are underway to clear the pending refunds as quickly as possible.
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If you have filed your return and are awaiting a refund, it is advisable to keep track of any communication from the Income Tax Department and respond promptly to avoid further delays.
https://www.freepressjournal.in/business/income-tax-refund-still-not-credited-this-shocking-reason-behind-the-delay-will-surprise-you