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A recent notification from the Income Tax Department has caused confusion and worry among those who pay taxes this week. Numerous individuals have reported getting a text message stating that their income tax refund request is “under review due to risks” and is currently on hold because of “some issues.” Various users on Twitter and LinkedIn have shared similar experiences, describing the message as unclear and stress-inducing. The notification states that the return has been marked for examination and encourages taxpayers to submit a revised return by December 31. It mentions that an email with further information has already been sent, even though many people claim they have not received such an email.
Chartered Accountant Parag Jain, who spoke on the topic in a LinkedIn post, indicated that many honest taxpayers are getting these alarming messages even when their claims are legitimate. He noted that individuals who reported donations, declared foreign assets, displayed demat holdings, or claimed significant refunds seem to get flagged. Jain mentioned that the way the alert is written has caused confusion because it arrives late at night and often references emails that were never sent. He believes that most taxpayers comply with the rules and seek clarity instead of fear. “Paying taxes and submitting returns on time should not feel like an offense,” he stated, asking the department to communicate more clearly and compassionately.
Chartered Accountant Mayank Gosar, who is the CEO of Softcon Capital, mentions that this notification is merely a prompt rather than an official warning. He explained that the department has temporarily held certain tax returns internally as they want to perform extra checks on specific claims. Usually, this is due to inconsistencies found in high-value transactions, donation claims, declarations of foreign assets, or refund amounts that seem unusually high. Gosar gave an example of a taxpayer who made a political donation and received a risk management notice. In these situations, the return is put on hold until either clarification from the taxpayer is provided or a revised return is submitted. He stated that the department will soon send detailed emails specifying the exact transaction or claim that needs to be verified, but many have not received those emails yet.
Gosar said the first action is straightforward. Check your income tax return to make sure all claims are backed by documentation. If anything was mistakenly declared, submit a revised return by December 31. If everything is accurate and has supporting documents, there is no reason to be alarmed. He also suggests reviewing AIS and Form 26AS for any discrepancies and providing appropriate feedback on AIS, particularly for high-value transactions. “In many instances, the emails with further details have not been sent out yet. The department has marked the returns for internal review and will provide specifics soon,” he explained. If everything matches up, taxpayers can wait for the official email. If the return is correct and has proof, processing will continue once the reviews are finalized.
Professionals state that the notification is not a notice for examination. It serves as a precaution filter that encourages taxpayers to check their submissions before the time to make changes ends. If the taxpayer overlooks it and issues still exist, the situation might be chosen for examination at a later time. However, honest taxpayers with accurate claims and valid paperwork have no reason to worry.
