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News INCOME TAX

  • Aug 20, 2025
  • CAs point to glitch in ITR software resulting in taxpayers getting a little less tax refund; what it means for you

    Chartered Accountant Aditi Bhardwaj has pointed out a glitch in the computer system which processes filed and verified income tax returns (ITRs). The problem is that the tax refund amounts aren’t being rounded off, resulting in small amounts being overlooked.

    On August 16, 2025, Bhardwaj said on X (formerly Twitter): “As per Section 288B of the Income-tax Act, 1961, the amount of refund should be rounded off to the nearest multiple of ten rupees. However, it is observed that for ITR refunds of AY 2025-26, the final refund is not rounded off. For example, Rs 35,807 is not rounded to Rs 35,810. This appears to be happening across all cases. Request to clarify @IncomeTaxIndia. Example acknowledgment attached.”

    While CAs have varying opinions, they all agree that Bhardwaj is correct.

    Sanjoli Maheshwari, Executive Director, Nangia & Co LLP, says: In reference to the query, yes, the understanding is correct that while filing the tax returns for AY 2025-26 , the final refund is not getting rounded off. However, given the quantum involved being very negligible, the same would hardly have any impact on the Taxpayers.