Income Tax Refund: 95% Cases Processed, Why Some Taxpayers' Refunds Are Stuck

• Income tax refunds decreased by 16.92% this fiscal year, totaling Rs 3.11 lakh crore by January 11.
• Reasons for lower refunds include changes in tax deduction patterns, increased interest in the new income tax regime, and scrutiny of returns.
• Mismatches found in some returns led to closer scrutiny and requests for revisions, impacting total refunds.
• Over 95% of refund cases for FY26 have been processed; only a few cases are held back for further investigation.
• The new income tax regime, with no deductions/exemptions and lower rates, is attracting more taxpayers, reducing refund claims.