income tax refund stuck due to risk management: Over the last few days, thousands of taxpayers across India have received emails and SMS alerts from the Income Tax Department stating that their income tax refund is stuck due to risk management checks. These messages have created confusion, stress, and panic—especially because they arrived just days before the deadline to revise income tax returns.
Many taxpayers took to social media platforms like X (Twitter) to complain that they were not informed earlier. Some also requested the government to extend the deadline for correcting errors, as the alerts came at the last moment ⏳.
In this article, we explain why your income tax refund is stuck due to risk management, how long the delay can last, whether you should worry, common reasons for refund holds, and what you must do before the 31 December 2025 deadline.
📩 Why did the Income Tax Department send these alerts?
The Income Tax Department has recently activated advanced AI-based risk management systems to cross-check data submitted in Income Tax Returns (ITRs) with information available from multiple sources.
Taxpayers whose returns showed discrepancies received a standard message like this:
“Processing of the said return was held as it was identified under the risk management process on account of certain discrepancies in the claim of refund. An email with details has also been sent to your registered email address.”
This simply means the department found mismatches or unusual claims and has temporarily put your refund on hold until verification is complete 🔍.
⏳ How long can an income tax refund be delayed due to risk management?
Taxpayers often ask the most important question:
How long will my income tax refund be stuck due to risk management?
According to tax expert Suraj Singh, Founder of SD Singh and Associates:
- Refund delays can range from a few weeks to 2–3 months
- There is no fixed timeline, as each case is different
- However, delays should ideally not extend beyond a couple of months
Since the return has already passed through automated systems, the delay is mainly for manual or document-based verification.
📌 If serious discrepancies are found, the department may issue:
- A clarification notice
- A demand notice
- A scrutiny request
Refunds are released only after verification is successfully completed.
🧾 Do both old tax regime and new tax regime taxpayers receive this message?
Yes. Tax experts confirm that taxpayers under both tax regimes—old and new—have received risk management alerts.
However, a larger number of cases belong to the old tax regime. The reason is simple 👇
- The old tax regime allows multiple deductions (HRA, 80C, 80D, donations, etc.)
- These deductions are easier for the system to flag if inflated or mismatched
- The new tax regime has fewer deductions, so fewer chances of errors
As Singh explains, AI systems now cross-match data from banks, employers, mutual funds, brokers, and other reporting entities automatically 🤖.
😟 Should you be worried if your refund is stuck under risk management?
For honest and genuine taxpayers, there is no need to panic 🙏.
According to Ashok Mehta, Managing Council Member of The Chamber of Tax Consultants:
- Risk management alerts are meant to give taxpayers a chance to correct mistakes
- These alerts are issued under data-matching provisions
- The aim is compliance improvement, not punishment
If you have:
- Reported correct income
- Claimed genuine deductions
- Not hidden any information
👉 You simply need to review your return and correct errors, if any.
🚨 Concern is only for those who:
- Intentionally underreported income
- Claimed fake or inflated deductions
- Hid capital gains or foreign income
📌 Common reasons why income tax refund gets stuck
Here are the most common reasons why your income tax refund is stuck due to risk management:
- ❌ Mismatch between ITR and Form 26AS / AIS / TIS
- ❌ Non-reporting of capital gains (shares, mutual funds, property)
- ❌ F&O trading or ESOP income not disclosed
- ❌ Foreign income or foreign assets not reported
- ❌ Inflated claims for HRA, insurance, donations
- ❌ Sale of property not reported under capital gains
- ❌ High credit card spending without matching income
- ❌ Ignoring compliance notices on the income tax portal
Even a small mismatch can trigger the system ⚠️.
🛠️ What should you do immediately after receiving the message?
If your refund is on hold, follow these steps 👇
- Log in to the Income Tax e-Filing Portal
- Check email and portal notifications
- Compare your ITR with:
- Form 26AS
- AIS
- TIS
- Identify any mismatch or missing income
- File a revised return if needed
⏰ The last date to revise your return for AY 2025-26 is 31 December 2025.
⚠️ What happens if you miss the 31 December deadline?
If you fail to revise your return by 31 December 2025, the situation becomes costly 💸.
Your only option will be to file ITR-U (Updated Return), which involves:
- Additional tax
- Interest
- Penalty
🚫 Most importantly:
- Refunds cannot be newly claimed or increased in ITR-U
- You may permanently lose your refund, even if it was genuine
Singh warns that ignoring the alert can lead to serious consequences later.
📩 Can scrutiny or notices follow if no action is taken?
Yes. If you do nothing:
- The return may still get processed
- The department may issue a notice under Section 133(6)
- If the reply is unsatisfactory, scrutiny under Section 147 may follow
While risk management alerts are not penalties, ignoring them increases future risk 🚨.
✅ Final takeaway for taxpayers
If your income tax refund is stuck due to risk management, remember:
- It is a verification process, not punishment
- Honest taxpayers have nothing to fear
- Review your return carefully
- Act before 31 December 2025
- Early correction = faster refund 💰
Timely action can save you from penalties, notices, and loss of refund.
🔔 Disclaimer
This article is for educational purposes only. Views expressed are based on expert opinions and do not constitute legal or tax advice. Tax laws may change, and individual cases may vary.
FAQs: Income Tax Refund Stuck Due to Risk Management ❓
Why is my income tax refund stuck due to risk management?
Your income tax refund is stuck due to risk management because the Income Tax Department’s system detected mismatches between your ITR and data in Form 26AS, AIS, or TIS. Refunds are temporarily held until verification confirms the correctness of income and deduction claims.
How long can an income tax refund be delayed under risk management?
An income tax refund stuck under risk management is usually delayed for a few weeks to two or three months. There is no fixed timeline, as verification time depends on the nature of discrepancies and whether additional clarification or documents are required.
Is risk management the same as scrutiny by the Income Tax Department?
Risk management is not the same as scrutiny. It is an automated verification process used to detect inconsistencies in tax returns. Scrutiny begins only if discrepancies remain unresolved after clarification or if serious underreporting or misreporting of income is identified.
Will I receive my refund after correcting the errors?
Yes, most taxpayers receive their refund after correcting errors. Once discrepancies are resolved through a revised return or clarification, and documents match departmental records, the Income Tax Department processes the return and releases the refund accordingly.
What documents should I check if my refund is stuck?
If your refund is stuck, you should compare your ITR with Form 26AS, AIS, and TIS. Ensure income, TDS, capital gains, and deductions match exactly. Even small mismatches can trigger risk management checks and delay refunds.
Can honest taxpayers face penalties under risk management checks?
Honest taxpayers do not face penalties simply because their refund is under risk management. The process is meant to identify errors and allow corrections. Penalties are imposed only if intentional concealment, false deductions, or deliberate underreporting of income is found.
Does risk management affect taxpayers under the new tax regime?
Yes, taxpayers under both new and old tax regimes can be affected by risk management checks. However, more cases are seen under the old tax regime because it allows multiple deductions, which are easier for the system to verify and flag.
What happens if I do not revise my return before 31 December?
If you do not revise your return by 31 December, you can only file an ITR-U later. Refunds cannot be newly claimed or increased through ITR-U, and additional tax, interest, and penalties may apply in such cases.
Can the Income Tax Department issue a notice if I ignore the alert?
Yes, if you ignore the risk management alert, the Income Tax Department may issue a notice under Section 133(6) seeking clarification. Failure to respond satisfactorily can lead to further verification or scrutiny under Section 147.
How can I avoid income tax refund delays in the future?
You can avoid refund delays by reporting all income correctly, matching ITR data with Form 26AS and AIS, avoiding inflated deductions, and responding promptly to any income tax notices or portal communications.
