Taxpayers troubled by long refund delays and unresolved ITR mistakes may finally see smoother and faster resolutions. The Central Board of Direct Taxes has issued a major notification allowing the Centralised Processing Centre in Bengaluru to directly correct errors found in income tax records. Earlier, many mismatches and mistakes had to go through jurisdictional assessing officers, which caused delays and confusion.
With this reform, the government aims to reduce paperwork, increase transparency, speed up refunds, and improve the overall filing experience. At a time when taxpayers are actively complaining about refund delays, the new system promises quicker and more efficient outcomes.
Key Takeaways on Faster Income Tax Refunds Under New CBDT Rules
• CPC Bengaluru can now correct ITR mistakes under Section 154 without waiting for assessing officers.
• Refunds and Section 244A interest calculations can be corrected much faster.
• A centralized system reduces delays caused by inter-department communication.
• Notification No. 155/2025 gives clear authority to the Commissioner, Additional Commissioners, Joint Commissioners, and Assessing Officers.
• All corrections will move through CPC’s automated system for better transparency.
• Common refund delays due to mismatches, high-value refunds, revised returns, and foreign income cases can now be resolved faster.
• Timely filers get 6 percent annual interest on delayed refunds under Section 244A.
CBDT Notification: What Has Changed
The CBDT notification issued on October 27, 2025, brings an important shift in the way ITR corrections are handled. For the first time, the Commissioner of Income Tax at CPC Bengaluru has been given concurrent powers to fix mistakes that are visible from records. These include errors in computation, cases where prepaid tax credits were not fully considered, wrong refund calculations, mistakes in interest under Section 244A, and other similar issues.
Earlier, these corrections required involvement from jurisdictional assessing officers, which created delays. The new rule now allows the CPC to manage such issues directly, making the process simpler and quicker.
The notification also authorizes additional and joint commissioners to issue instructions that allow assessing officers working under them to carry out rectifications. This structure ensures that corrections can be made quickly across different regions.
A Boost for Taxpayers Facing Long Refund Delays
Taxpayers have been regularly discussing refund delays on social media. Many have complained about pending refunds even after paying extra tax on foreign investments or capital gains. Some have filed revised returns and still waited for months. The new system aims to fix these pain points.
Key improvements include:
• Faster corrections of TDS, TCS, advance tax, or self-assessment tax mismatches.
• Smooth handling of defective return notices under Section 154.
• Better processing of returns involving foreign income, capital gains, or multiple income sources.
• Less dependency on government liquidity cycles, which experts say sometimes affects large refunds.
• Faster processing of revised returns, which earlier had to be re-evaluated manually.
Tax expert Balwant Jain has noted that even small mismatches between what taxpayers report and what banks, employers, or institutions report can delay refunds. Centralized rectification reduces such issues significantly.
Section 244A: How Taxpayers Earn 6 Percent Interest on Delayed Refunds
Section 244A ensures that taxpayers receive interest if the government delays their refund. The interest rate is 0.5 percent per month, which equals 6 percent per year. This interest applies to the total refund amount, including TDS, advance tax, and self-assessment tax.
If taxpayers filed their ITR for FY 2024–25 before the extended deadline of September 16, 2025, the interest starts from April 1. If the return was filed late, interest is calculated from the date of filing.
Also Read: CBDT Extends ITR and Audit Due Dates for AY 2025–26: Big Relief for Taxpayers and Professionals
However, interest is not paid if the delay is due to the taxpayer’s own mistakes, such as wrong details or missing documents. With the new rules, the CPC can now correct Section 244A interest issues directly, which speeds up resolution.
Why Income Tax Refunds Get Delayed
The news also highlights several reasons why refunds take longer:
• Refunds above ₹1 lakh go through extra verification.
• Foreign income, capital gains, or multiple income sources require manual checks.
• Defective returns under Section 154 slow down processing.
• Revised returns take longer because they must be reprocessed.
• Mismatches with Form 26AS or AIS stop refunds until corrected.
• Not verifying the ITR makes the return invalid, blocking refunds.
• Any discrepancy between taxpayer data and data from employers, banks, or institutions triggers extra checks.
Taxpayers are advised to check their refund status on the e-filing portal and respond quickly to any notice or communication.
Spiritual Insight: How Tatvdarshi Sant Rampal Ji Maharaj Ji Explains the True Path of Justice and Relief
In today’s fast-changing system, people seek fairness, clarity, and protection from unnecessary complications. Tatvdarshi Sant Rampal Ji Maharaj explains that real justice goes beyond government reforms; it lies in understanding the Supreme God’s true method of granting relief. According to His spiritual teachings, every action is recorded, every mistake can be corrected through true devotion, and every seeker receives timely support. His knowledge highlights that just as administrative errors need the right authority for correction, the soul also needs the right Spiritual Authority to attain peace, freedom from suffering, and a transparent path toward salvation. His unique spiritual guidance continues to help countless followers achieve clarity, discipline, and comfort in both worldly and spiritual matters.
A Major Step Toward a Transparent and Efficient Tax System
The reform clearly supports the government’s push toward a digital-first and taxpayer-friendly approach. Moving rectifications to CPC’s automated system creates a faster and more dependable process. It reduces manual errors, improves accountability, and makes refund timelines more predictable. The system is designed to cut down unnecessary paperwork, eliminate delays caused by multiple layers of approvals, and provide truly smoother tax compliance. With this move, the government aims to deliver real “ease of justice” in income tax administration while reducing the overall burden on taxpayers.
FAQs on Faster Income Tax Refunds and New CBDT Rectification Rules
1. How will the new CBDT rules speed up income tax refunds?
The rules allow CPC Bengaluru to directly rectify ITR errors under Section 154, reducing delays caused by jurisdictional officers and enabling faster refund processing.
2. What types of ITR mistakes can CPC now correct?
CPC can fix computational errors, tax credit mismatches, incorrect refund calculations, Section 244A interest mistakes, and other issues visible from taxpayer records.
3. Who earns interest on delayed income tax refunds?
Taxpayers who file ITR on time earn 6 percent annual interest under Section 244A if the department delays refunds.
4. Why do income tax refunds get delayed?
Refunds delay due to mismatches, high-value refunds, foreign income, defective returns, revised ITRs, verification issues, or discrepancies in Form 26AS or AIS.
5. What is Notification No. 155/2025 issued by CBDT?
It authorizes CPC Bengaluru and senior officers to rectify ITR errors, issue demand notices, and process corrections centrally for faster, transparent tax administration.
