As India’s Income Tax Department (ITD) accelerates digital transformation, the ITR filing season for Assessment Year (AY) 2025–26 has split into two very different experiences. While salaried individuals and presumptive taxpayers using ITR-1 and ITR-4 are receiving refunds within hours—rivaling delivery platforms like Blinkit—those filing under ITR-2 and ITR-3 remain stuck in limbo, with forms yet to go live on the portal.
An income tax refund arises when the taxes paid—whether through TDS, TCS, or advance tax—exceed the actual tax liability.
For instance, if you paid ₹10,000 in taxes but owe only ₹8,000, you are entitled to a ₹2,000 refund. Normally, the refund process takes 4–5 weeks post-verification. However, that timeline is being redefined this year for many ITR-1 and ITR-4 filers.
Numerous taxpayers have reported receiving refunds within a few hours of filing ITR-1 or ITR-4.
One user on X (formerly Twitter) stated they filed their return at 7:31 PM on July 5, 2025, and received their refund by 9:30 PM the same night.
Such speedy processing is increasingly common, thanks to:
This technological push reflects a significant leap in taxpayer convenience, especially for salaried individuals and small business owners filing under presumptive taxation.
As of July 8, 2025, utilities for ITR-2 and ITR-3—used by individuals with capital gains, multiple properties, or business/professional income—are still unavailable.
This has stalled the filing process and delayed potential refunds for a sizable portion of taxpayers, including HNIs, consultants, and freelancers.
Causes of Delay:
Despite the deadline extension for non-audit cases to September 15, 2025, many taxpayers are anxious about delayed processing and financial uncertainty.
Refunds are critical to many taxpayers’ financial planning. Delays can impact:
Even after filing, refunds may be delayed due to:
| ITR Form | Suitable For |
| ITR-1 (Sahaj) | Salaried individuals with income < ₹50L, one house property, interest/dividend income |
| ITR-2 | Individuals with capital gains, >1 house property, foreign assets, or income > ₹50L |
| ITR-3 | Individuals and HUFs with business/professional income |
| ITR-4 (Sugam) | Individuals under presumptive taxation (44AD, 44ADA) |
If Filing ITR-1 or ITR-4:
If Filing ITR-2 or ITR-3:
AY 2025–26 is shaping up to be a case study in contrasts. The government’s automation efforts have delivered unprecedented speed to some taxpayers—but not all. While ITR-1 and ITR-4 filers enjoy near-instant refunds, ITR-2 and ITR-3 users remain in wait mode, risking delays in refunds, planning, and compliance confidence.
Disclaimer: The article is for informational purposes only and not investment advice.
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