The second phase of the Central Board of Direct Taxes’ ‘Nudge’ scheme has also added to the delay. Using information received through foreign data exchange, the department is identifying taxpayers who may not have reported foreign income or assets for the financial year 2024–25.
From November 28 onwards, messages were sent to such taxpayers. These returns are now being examined very carefully before any refund is released.
System pressure after deadline extensions
The return filing deadline was extended twice, leading to a heavy rush of filings in September. This put pressure on the automated systems.
Taxpayers whose return details do not match the information shared by banks, employers, or other institutions are receiving system alerts. These alerts must be resolved before refunds can be issued.