Income Tax Refund Status 2025: How to Check ITR Refund, Handle CBDT “NUDGE” SMS/Email, and Use New Rectification Feature Before Dec 31

As the year-end deadline of December 31, 2025 approaches, many taxpayers are tracking one question more closely than usual: when will my income tax refund arrive? At the same time, thousands are seeing SMS and email “nudges” from the Income Tax Department asking them to re-check deduction and exemption claims—especially where refund claims appear inconsistent with available data. ^[1]

This combination—refunds pending, compliance nudges rolling out, and a hard year-end cut-off for revised returns—has turned the last week of December into a high-stakes window for taxpayers filing for FY 2024–25 (AY 2025–26). ^[2]

Below is a practical guide to what’s happening, what the alerts mean, how to check your income tax refund status, and where the e-filing portal now offers new tools—like an expanded online rectification route for certain tax orders.

Why income tax refunds are delayed for some taxpayers in December 2025

In a press release dated December 23, 2025, the Central Board of Direct Taxes (CBDT) said it has observed cases where taxpayers claimed “ineligible refunds” by using deductions or exemptions they weren’t entitled to, leading to understatement of income. The CBDT added that under its risk management framework and advanced data analytics, cases for AY 2025–26 were identified for review. ^[3]

A key area flagged in the CBDT’s note: instances where bogus donations (including to Registered Unrecognised Political Parties—RUPPs) and other ineligible claims “appear to have been claimed,” alongside cases where incorrect/invalid PANs of donees were quoted or where errors exist in the extent of deduction/exemption claimed. ^[4]

That matters for refunds because once a return is flagged under risk analytics, the processing timeline can stretch. Mint quoted tax expert Ashok Mehta (The Chamber of Tax Consultants) explaining that if a refund is put on hold under risk management, it can indicate a mismatch between the income tax return and TDS details or other reported information—effectively giving taxpayers an opportunity to correct errors. ^[5]

Mint also cited Suraj Singh (SD Singh and Associates) saying that where refunds are flagged under risk management, the wait may range from a few weeks to a couple of months, and an exact timeline is difficult to pin down. ^[6]

What the Income Tax Department’s “NUDGE” SMS/email means

The Times of India reports that taxpayers identified by the department are being contacted through SMS and email under the government’s “Non-intrusive Usage of Data to Guide and Enable (NUDGE)” campaign. The stated objective is to encourage voluntary correction of returns—especially before the December 31, 2025 cut-off. ^[7]

In its December 23 press release, the CBDT described the initiative as a “trust-first approach” that provides an opportunity to review returns and voluntarily correct ineligible claims, emphasizing transparency and taxpayer-centric compliance. ^[8]

Importantly, the CBDT also clarified that taxpayers whose deduction/exemption claims are genuine and correctly made in accordance with law are not required to take any further action. ^[9]

Why your return might be “nudged”: deductions, exemptions, and foreign asset flags

TOI quoted Amarpal Chadha, Tax Partner at EY India, saying the NUDGE campaign is designed to encourage taxpayers to voluntarily review deduction/exemption claims identified as potentially ineligible through data analytics. Chadha also noted that the department is leveraging global information-exchange frameworks such as AEOI, CRS, and FATCA to detect possible discrepancies in foreign asset reporting. ^[10]

TOI also quoted Tanu Gupta, Partner at Mainstay Tax Advisors LLP, warning that non-genuine or inconsistent deductions are likely to face scrutiny. She cited current high-focus areas like “Donation to Political Parties” and House Rent Allowance (HRA) as examples. ^[11]

Another trigger flagged in reporting: where taxpayers claim deductions/exemptions beyond what is reflected in Form 16, including HRA and certain other exemptions—an issue Chadha said is on the department’s radar. ^[12]

What you should do if you received a “NUDGE” message

If you’ve received a message asking you to review your claims, the practical response is not panic—it’s verification.

Mint’s guidance aligns with what many tax professionals recommend: review the filing, ensure income and deductions match Form 26AS / AIS / TIS, and correct unintentional errors if found. ^[13]

TOI’s experts also stress documentation and calm action. Gupta said taxpayers should keep basic supporting proof ready for exemption/deduction claims—such as receipts/invoices, bank statements evidencing payment through banking channels, and confirmations from recipients where relevant. She also emphasized there is “no need for panic” and that taxpayers should revisit claims and file a revised return if needed. ^[14]

A quick, practical checklist before you revise anything

Cross-check numbers in your ITR against Form 26AS / AIS / TIS (income, TDS, interest, capital gains reporting, etc.). ^[15]
If you claimed donations, confirm the recipient’s details and identifiers (including PAN where applicable) are correctly entered—CBDT specifically flagged incorrect/invalid donee PANs in some cases. ^[16]
If you claimed HRA, ensure your claim is consistent with employer documents where relevant and that you can substantiate it if asked. ^[17]
If you have foreign assets/income, ensure disclosures are complete—this is one area EY’s Amarpal Chadha said is being tested via information exchange frameworks. ^[18]

The December 31, 2025 deadline: revised returns vs updated returns

Revised return deadline: December 31, 2025

The CBDT’s December 23 press release advises concerned taxpayers to review and, if required, revise their returns by December 31, 2025, to avoid further enquiries. ^[19]

Mint’s coverage also emphasizes that taxpayers who received a notice or made mistakes/omissions may need to file a revised ITR by the due date. ^[20]

What if you miss December 31?

Mint quoted Suraj Singh saying that if you miss the December 31 deadline, the remaining option is typically an Updated Return (ITR-U)—which comes with additional tax/interest implications—and, critically, may affect refunds. ^[21]

On the law side, the Income Tax Department’s own portal explains that Section 139(8A) (Updated Return) does not apply if the updated return:

decreases tax liability, or
results in a refund or increases the refund. ^[22]

That restriction is central to why tax professionals keep repeating one message in late December: if you need to correct something that impacts a refund claim, do it before December 31. ^[23]

Can you revise after December 31 in special cases?

Mint reported that in situations of “genuine hardship,” taxpayers may seek relief through a condonation application that must be filed and approved after the deadline—typically involving penalties/interest and additional scrutiny. ^[24]

How to check Income Tax Refund Status on the e-filing portal

If you’re waiting for your refund, the Income Tax Department’s e-filing portal provides a straightforward path to check the latest status.

The department’s own Refund Status User Manual outlines the steps:

Log in to the e-Filing portal using your user ID and password.
Go to e-File → Income Tax Returns → View Filed Returns.
Select the relevant assessment year and click View Details to see the refund status and return lifecycle. ^[25]

Mint’s step-by-step flow mirrors this same pathway. ^[26]

What refund status messages can show

Mint noted that taxpayers may see outcomes such as:

Refund issued
Partial refund issued
Refund adjusted (full)
Refund failed ^[27]

The Income Tax Department’s manual also explicitly lists “refund failed” as a scenario and adds a key warning: if your PAN is inoperative, your refund can fail and you may see a prompt to link PAN with Aadhaar. ^[28]

Common reasons refunds fail (and quick fixes)

According to the Income Tax Department’s Refund Status user manual, refunds may fail to credit if:

your bank account is not pre-validated (now compulsory),
the name on the bank account doesn’t match PAN details,
the IFSC is invalid, or
the bank account mentioned in the ITR is closed. ^[29]

These are among the first things to check before assuming a deeper issue.

You can also be redirected to NSDL/Protean for refund status

The Income Tax Department provides a page that can route taxpayers to the Tax Information Network website maintained by NSDL for displaying refund status, alongside portal-based verification. ^[30]

How long do income tax refunds take in 2025?

Mint’s live coverage stated that refunds are often credited within 4–5 weeks of filing once processing begins. ^[31]

However, the same coverage also highlighted that where refunds are flagged under risk management (including mismatch checks), timelines can extend to weeks or months, and precise timelines may not be predictable. ^[32]

Given the current “NUDGE” environment and enhanced analytics, taxpayers should treat the portal status as the most reliable day-to-day indicator—and act quickly if the status suggests a mismatch or failed refund. ^[33]

New e-filing portal feature: online rectification for TP/DRP/Revision orders

Beyond refunds, the Income Tax Department has also expanded digital compliance tools. The Economic Times reports a new feature that allows taxpayers to file rectification applications for specific income tax orders directly online with the relevant authority, reducing dependence on manual submissions or routing everything through the Assessing Officer. ^[34]

ET quoted the department stating that “applications for rectification against TP/DRP/Revision Orders can now be filed directly… through the e-filing portal under the Services tab → Rectification → Request to AO seeking rectification.” ^[35]

What kinds of orders does this cover?

Chartered Accountant (Dr.) Suresh Surana told ET this is relevant where there is an obvious mistake on record—such as calculation errors, incorrect interest charges, figure mismatches, or clerical mistakes—in:

Transfer Pricing (TP) orders,
DRP directions, or
Revision orders (including under Sections 263 or 264). ^[36]

Surana described the shift as improving procedural efficiency and transparency by enabling end-to-end digital filing and reducing the need for physical follow-ups. ^[37]

Where rectification fits—and where it doesn’t

The Income Tax Department’s rectification FAQs make an important boundary clear: rectification is not meant to claim new exemptions/deductions; if your own mistake can be corrected with a revised return, that’s the correct route within the eligible time window. ^[38]

How to file a rectification request on the portal

The Income Tax Department’s rectification user manual shows the standard workflow:

Log in → Services → Rectification → New Request, select assessment year, and choose the appropriate request type. ^[39]

And if rectification rights are transferred to the AO, the portal’s FAQ notes you can file using the path:

The bottom line for taxpayers before December 31, 2025

If your income tax refund is pending and you’ve received a NUDGE alert (or you suspect a mismatch), the safest approach is to act before December 31, 2025:

Check refund status on the portal (and fix basics like PAN-Aadhaar and bank pre-validation if needed). ^[41]
Review deductions/exemptions against your data trail (Form 26AS/AIS/TIS, Form 16, donation identifiers, foreign disclosures where relevant). ^[42]
File a revised return within the deadline if something needs correcting—because ITR-U cannot be used to claim or increase a refund, as the department’s own portal text on Section 139(8A) explains. ^[43]

And if your issue is not about the return itself but about an order/intimation mistake, the e-filing portal’s expanding rectification services—including the newly enabled online route for TP/DRP/Revision order rectifications—offer a faster, more traceable way to move cases forward.