Recently, a taxpayer suffered a loss of Rs 1.5 lakh after responding to a fake delayed refund message, after which the Income Tax Department has issued a new warning. This alert comes at a time when many taxpayers are already worried about delays in refunds over the past one year – fraudsters are now taking advantage of this concern through phishing messages and fake portals. For the last one year, the timeline of refund has been a topic of discussion among taxpayers. Many people complained on social media that despite filing early, there is a delay in getting the refund.
In response, the government said that refunds are processed after proper verification and matching of data, especially where anomalies are flagged. Officials have repeatedly said that most refunds are issued within weeks, but cases involving mismatch, scrutiny or pending verification may take longer. Scammers are now taking advantage of this concern regarding delayed refunds.
How is the scam happening?
According to a social media post on X by tax advisory platform TaxBuddy, the fraud usually starts with a message claiming that your refund is pending and needs immediate verification. There is a link in the message which seems official.
After clicking, you are redirected to a fake website that looks like an income tax portal. You are asked to enter PAN, login ID and password. An OTP is asked for verification. In some cases, bank details are also asked. As soon as these details are shared, fraudsters gain access to your account. In a recently reported case, the taxpayer suffered a loss of Rs 1.5 lakh.
Tax Refund Scam Alert
One taxpayer lost ₹1.5 lakh to a fake refund delay message.
The Income Tax Department has now issued an official warning.
Every taxpayers need to read this to stay safe
— TaxBuddy (@TaxBuddy1) February 21, 2026
Why are taxpayers falling for this?
Refund conversations always attract attention. When a message says delayed refund or warns that the amount may lapse, it creates urgency. Fraudsters deliberately use words like intimidating language, final reminder tone, threat of canceling refund, asking for immediate action, pattern is easy etc. Due to which quick clicks are done in panic, and quick clicking leads to compromise.
What does the Income Tax Department not do?
The Income Tax Department has clarified that it does not send refund verification links through SMS, does not ask for OTP on phone calls or messages, does not ask for passwords or banking details through random emails. Refund status can be checked only by logging in directly to the official income tax e-filing portal. Taxpayers are advised to type the website address themselves instead of clicking on any embedded link.
what should you do
- To check status, log in directly to the official portal
- Ignore messages asking for urgent verification
- Never share OTP, password or login credentials
- Report suspicious messages immediately
You can also report phishing attempts to the department’s official grievance channel and the Indian Computer Emergency Response Team (CERT-In) to help prevent further fraud.