Real-time income tax refund tracker on the ITR e-filing portal is needed in Budget 2026, say experts, ETCFO
With just over a month to go until Budget 2026, industry experts are asking the government to impliment some suggestions. One such suggestion is about implementing a real time income tax refund tracker on the ITR e-filing portal.
This year (AY 2025-26) has been notorius for delayed tax refunds, delayed income tax return forms, and the ITR filing deadline being extended twice among other issues. Many taxpayers are still waiting anxiously for their tax refunds, as is evident from the various complaints on X.
Chartered Accountant Ashish Niraj, Partner, A S N & Company, emphasizes the need for real time tax refund tracking on the Income Tax Portal.
Niraj says: “We professionals keep getting calls/messages from our clients about their tax refund status but professionals also don’t have any answer as presently only “Successfully e-verified” status is shown on income tax portal in those cases where refunds are delayed due to non-processing.”
Also read: If ITR is not processed by 31 December 2025, you won’t be able to file revised ITR; Here’s what you can do if you have a tax refund claim
Why is there a need for a real time tax refund tracker on the e-filing ITR portal?
Deloitte in its pre-budget book said that it is true that the Central Board of Direct Taxes (CBDT) has significantly improved refund processing timelines following tax return submissions. The income tax portal now also provides real-time updates on refund status for each fiscal year, indicating whether the refund is in process, issued or returned. However, taxpayers lack real-time tracking of their refund.
Deloitte said: “In case of larger refunds, the anxiety of the taxpayers increases if the refunds are not credited to the bank account within a month.”
Reasoning
According to Deloitte, the absence of a real time tax refund tracker leads to
- Uncertainty and anxiety about refund timelines.
- Increased queries and grievances to the tax department.
- Difficulty in financial planning, especially for individuals and businesses relying on timely refunds. Recommendation CBDT should consider implementing a real-time refund tracking dashboard within the taxpayer portal that includes:
- Clear status indicators with indicative timelines such as: • “Under Processing,” “Approved,” “Sent to Bank,” “Credited.”
- A “Raise Concern” or “Escalate” button if the refund is delayed beyond expected timelines.
- Integration with the grievance redressal system and push notifications (SMS/emails) for status changes.
Deloitte says: “This enhancement would significantly improve the taxpayer experience, reduce manual follow-ups and align India’s tax systems with global best practices.”Poorva Prakash, Partner, Deloitte India, says that taxpayers lack real-time tracking of their refunds. Taxpayers expecting larger refunds often experience uncertainty, when refunds are not credited within a reasonable period.
Also read: What if CPC misses ITR processing deadline? Here’s how taxpayers can legally claim their tax refund
Prakash says: “This lack of transparency can increase anxiety, lead to avoidable follow-ups with the tax administration, and also complicate financial planning, particularly for individuals and businesses that rely on timely refunds to manage their cash-flows.”
According to Prakash, the tax authorities may consider providing a real-time refund tracking dashboard within the taxpayer portal, that includes clear status indicators with indicative timelines.
Prakash says: “Further, a ‘Raise Concern’ or ‘Escalate’ button may be provided for the taxpayer, if the refund is delayed beyond expected timelines. This may also be integrated with the grievance redressal system and push notifications (SMS/ E-mails) for status changes.”
According to Niraj, CBDT Should incorporate sub-process status such as :-
- Assessment Year or Tax Year:
- Date of Filing ITR:
- Date of Verification:
- Current Status: Not Processed/Processing Started/AIS-26AS Comparison Done/Intimation Sent to Taxpayer for Confirmation/Processed/Refund Approved/Sent to Bank etc with date of such status.
Niraj says: “Also a line should be inserted for the expected date of refund credit once processed.”
