I-T Refunds Delayed: Form 16 Mismatch Halts Processing for AY 2025-26 Taxpayers

• Income tax refunds for AY 2025-26 are delayed due to mismatches between exemption claims in ITRs and employer-reported salary details in Form 16.
• The Income Tax Department is pausing refund processing and sending emails to taxpayers about "significant mismatches" and "unusually high refund claims."
• Refunds are paused, not cancelled; taxpayers must address discrepancies or explain them to proceed.
• Taxpayers should review ITRs, Form 16, and Form 26AS, ensuring all claimed exemptions are supported by documents.
• A revised return can be filed by December 31, 2025, to correct errors; inaction may lead to detailed examination or penalties.

Why It Matters: I-T refunds are delayed due to Form 16 mismatches; taxpayers must verify claims or file revised returns by Dec 31, 2025.