Why IT Refunds Trend on Google & Penalties for Late Filing

High-Value IT Refund Cases Spark Search Surge

In the Indian market, income tax refunds have become one of the most searched topics over the past week. Google Trends indicates a surge in queries about refund delays, income tax refund status, and questions such as, When will I receive my income tax refund? This increase follows a recent statement by CBDT Chairman Ravi Agarwal, who confirmed that the department is investigating several high-value and red-flagged refund claims. As a result, this scrutiny is causing temporary delays in processing refunds.

Aggarwal assured that all legitimate refunds will be processed by December. Despite this, public concern remains high, as income tax refunds continue to trend on Google Trends.

Despite 81.8 Million ITR Filings, 9.2 Million Returns Pending

According to the latest data from the Income Tax Department portal, over 81.8 million income tax returns have been filed. Of these, 78.7 million returns have been verified, while only 69.5 million have been processed to date.

This indicates that more than 9.2 million income tax return filings are still pending processing, making refund delays unavoidable

The Central Board of Direct Taxes (CBDT) Chief announced increased scrutiny of income tax returns with incorrect or suspicious deduction claims. To help taxpayers, the department has also advised them to file revised returns.

Processing Low-Value Refunds

According to Ravi Agrawal, small and low-value refunds are being issued without delay. However, the verification of high-value refund claims is taking longer to ensure that no incorrect refunds are released.

Refunds disbursed between April 1 and November 10 have decreased by almost 18%, totalling only ₹2.42 lakh crore. This decline in refund claims has persisted even after TDS rate rationalisation, resulting in a lower overall refund outflow.

Department Highlights Advancements in Litigation Reduction

The CBDT Chairman highlighted that while previous years witnessed a rise in tax appeal backlogs due to challenges such as COVID, this year, the appellate authorities have disposed of 40% more appeals than last year by working overtime. This reflects the department’s significant progress in clearing pending cases at a faster pace.

What’s Causing ‘Income Tax Refunds’ to Trend on Google Trends?

Search terms like ‘ITR refund delay,’ ‘When will the refund come?’ and other income tax refund–related queries were among the top trends on Google. This shows that millions of taxpayers across the country are experiencing refund backlogs, leading to increased uncertainty and concern.

What Is a Belated ITR and Its Due Date?

If you missed the original income tax return filing deadline (16 September 2025), you can still submit your return as a belated ITR.

• Due Date for Filing a Belated Return

• 31 December 2025

Penalty for Filing a Belated Return

• Filing a belated income tax return attracts a late fee of ₹5,000.

• If your taxable income is below ₹5 lakh, the penalty is reduced to ₹1,000.

Limitations of a Belated Income Tax Return

• Income Tax Return Refunds Can Be Delayed

• Losses, such as capital losses, cannot be carried forward.

• Higher Chance of Scrutiny for Belated Returns

• Therefore, experts recommend filing a belated return only when it is necessary.

In Conclusion

Income tax refunds continue to generate both concern and curiosity among taxpayers. While high-value refunds are currently under increased scrutiny, the department has reassured the public that all legitimate refunds will be processed and issued by December. According to Google Trends, this topic is drawing significant nationwide attention, with millions of taxpayers still waiting for their refunds.