As Union Budget 2026 approaches, taxpayers’ expectations are increasing. This time the discussion is not limited to just tax relief, but also focuses on faster refunds, fewer notices and easy compliance. The main reason for this is the New Income Tax Act, which is going to be implemented from April 2026 and whose roadmap will be decided by Budget 2026. The old Income Tax Act 1961 had become the cause of huge compliance and litigation over time due to complex amendments and outdated provisions. The new law will be based on simple language, streamlined structure and digital-first processes. The Tax Year concept will end years of confusion and will further strengthen faceless systems. However, experts believe that real relief will depend more on administrative decisions than policy. Now the eyes of taxpayers are completely fixed on Budget 2026.

Income Tax Refunds Complaint: Amid increasing complaints and delay in income tax refunds for assessment year 2025-26, the Income Tax Department has clarified the situation and said that many taxpayers have claimed such deductions and exemptions in their Income Tax Returns (ITR) for which they are not eligible, due to which their refunds are stuck. According to the department, cases where the amount of deduction or refund exceeds Rs 50,000 are being thoroughly investigated so that wrong claims can be prevented and only valid refunds are issued.

Why refunds to stranded people?

The Income Tax Department has informed such taxpayers through SMS and email and asked them to file revised ITR by December 31, so that they can re-review their returns and correct incorrect or ineligible claims. According to the report of Indian Express, the amount can come to the account of taxpayers whose refunds are found correct within the next 10 days.

The department has also advised that taxpayers should self-check the validity of all deductions and exemptions claimed in their ITR, so that additional inquiries or notices can be avoided in future. It is noteworthy that many taxpayers and chartered accountants have complained on social media that their refunds are pending and they have not received any information from the department.

Increasing complaints of taxpayers

According to official data, this time between April 1 and December 17, the refund amount has been 13.52 percent less compared to last year, while more than 15 lakh revised ITRs have been filed so far for the assessment year 2025-26.

Apart from this, about 21 lakh taxpayers have updated their returns between assessment year 2021-22 to 2024-25 and tax of more than Rs 2,500 crore has been deposited so far in the current financial year, which clearly shows that the department is trying to issue correct refunds on time along with being strict on wrong claims.

If you pay tax in India, then this video is very important for you. The last date for the third installment of Advance Tax is 15 December 2025, and missing it can put you in huge loss. It is mandatory for those whose annual tax liability is more than ₹ 10,000 to pay advance tax. In case of delay, 1% interest as well as penalty has to be paid every month. Instead of paying the tax for the entire year at once, it is deposited in different installments, so that the tax burden remains light and the government gets revenue on time. TDS of salaried people keeps getting deducted, so they only have to pay the remaining shortfall. But if your income is from interest, rent, capital gains, freelancing, business or profession, then advance tax is necessary.

Income tax return deadline: The time limit for filing income tax returns for FY 2025 (Assessment Year 2025-26) has been extended for one day. That is, the taxpayers who have not been able to file income tax returns so far, will get a chance till today i.e. on 16 September 2025.

The Central Board of Direct Taxes (CBDT) said in a late night statement that the last date of filing income tax for assessment year 2025-26 has been increased from September 15 to September 16. CBDT made it clear that the e-filing portal will be on maintenance on September 16 from 12:00 am to 2:30 pm to change the services.

Relief for taxpayers

It is worth noting that a large number of taxpayers had complained about technical flaws while filing income tax returns. In view of these problems, it has been decided to increase the time limit. Notification to this effect has been issued separately.

Earlier, Chartered Accountants and Taxpayers were constantly complaining about the problems coming about the e-filing portal on social media. He was expressing dissatisfaction with the delay in the release of Annual Information statement, slow speed and ITR utilities.

The tax department says that by September 15, more than 7 crore ITRs have been filed. The statement further said that taxpayers and tax professionals thank, who helped us reach this milestone. Also, we urge all that those who have not been able to file the Income Tax Return (ITR) for the assessment year 2025-26, must file their ITR.

For the convenience of taxpayers, ‘Assist Taxpayers Helpdesk’ 24X7 has been provided by the department. Through this, taxpayers can get help through calls, live chats, social media platforms and Webex.

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Income tax return: So far, more than 9 crore people have submitted income tax returns for FY 2024-25. This information has been received from the latest data released by CBDT (Central Board of Direct Taxes). According to the data, more than four lakh taxpayers have declared more than Rs 1 crore in the ITR deposited in the current financial year.

According to the data, about 3.89 lakh taxpayers have declared income between Rs 1 crore to Rs 5 crore, while about 36,274 persons have reported income between Rs 5 crore to Rs 10 crore. Apart from this, 43,004 people have revealed the income of more than Rs 10 crore. Due to this, the total number of high -income taxpayers (more than Rs 1 crore) increased to 4,68,658. These figures are expected to increase as the last date for filing income tax returns is 31 March 2025.

According to CBDT, so far more than 9.11 crore people have filed their ITR. The total number of taxpayers registered in India is 13.96 crore. This means that about 65 percent have filed their returns. Apart from this, about 8.56 crore tax returns have been e-verified and a refund of Rs 3.92 lakh crore has been released by the Income Tax Department.

Maharashtra has the highest number of 1.38 crore returns. 90.68 lakh returns were submitted in Uttar Pradesh, while 87.90 lakh returns have been filed in Gujarat. 44.45 lakh people have deposited ITRs in Delhi. At the same time, 30.76 lakh and 43.79 lakh returns were filed in Andhra Pradesh and Punjab. Earlier, the Income Tax Department had said that the direct tax collection during the current financial year (FY 2024-25) on 1 April 2024 – 16 March 2025 has increased to Rs 25.86 lakh crore with a strong increase of 16.2 percent as compared to the same period of the previous financial year (FY 24).

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