A recent message sent by the Income Tax Department has left many taxpayers unsettled and confused, with several unsure about why their income tax returns have suddenly been put on hold. The unexpected communication has raised concerns, especially among individuals who believe they have filed accurate and compliant returns.
Over the past few days, a large number of taxpayers have reported receiving an SMS from the Income Tax Department stating that their income tax refund claim has been “identified under the risk management process” and that the processing of their return has been temporarily paused due to “certain discrepancies.” The message further advises taxpayers to file a revised return before December 31, adding to the sense of urgency and anxiety.
Many recipients have taken to social media platforms such as Twitter and LinkedIn to share their experiences, describing the message as vague and unsettling. A common complaint is that while the SMS claims a detailed email has already been sent explaining the issue, several taxpayers say they never received any such email, leaving them unsure about what exactly is wrong with their return.
Explaining why these messages are being sent, Chartered Accountant Parag Jain addressed the issue in a LinkedIn post, noting that even fully compliant taxpayers are receiving these alerts. According to him, the problem is not necessarily wrongdoing, but the way the system flags certain types of claims. He pointed out that returns involving donation claims, disclosures of foreign assets, demat account holdings, or unusually high refund amounts appear more likely to be selected for this risk review.
Jain criticised the tone and timing of the communication, stating that receiving such messages late at night, coupled with references to emails that never arrived, creates unnecessary fear. He emphasised that most taxpayers follow the law and file honestly, and what they need is clarity rather than alarming messages. “Paying taxes and filing on time should not feel like a crime,” he wrote, calling on authorities to adopt a more transparent and empathetic approach.
Clarifying what “under risk management process” actually means, Chartered Accountant Mayank Gosar, who is also the CEO of Softcon Capital, explained that the message should not be mistaken for a formal scrutiny notice. Instead, it is an internal system-generated alert indicating that the department wants to conduct additional checks on specific aspects of the return before releasing the refund.
According to Gosar, such alerts are commonly triggered by mismatches or red flags related to high-value transactions, large donation claims, foreign asset disclosures, or refund figures that appear higher than usual. He shared an example of a taxpayer who received the alert after declaring a political donation. In such cases, the return is simply kept on hold until the taxpayer provides clarification or submits a revised return, if required.
He added that detailed emails specifying the exact issue or transaction under review are expected to be sent separately, but in many cases these emails have not yet reached taxpayers. This delay has contributed significantly to the confusion.
As for what taxpayers should do next, experts advise against panic. Gosar recommends first carefully reviewing the filed ITR to ensure that all claims are accurate and supported by proper documentation. If any mistake or incorrect entry is found, a revised return should be filed before the December 31 deadline.
Taxpayers are also advised to cross-check their AIS (Annual Information Statement) and Form 26AS to identify any mismatches, particularly in high-value transactions, and provide appropriate feedback in the AIS where necessary. In many instances, once discrepancies are clarified or confirmations are received, the processing of the return resumes automatically.
If everything in the return is correct and well-documented, experts say taxpayers can simply wait for the official email from the department detailing the specific concern. Once the internal verification is completed, refunds are expected to be processed without further issues.
Importantly, professionals stress that this alert does not amount to a scrutiny notice or an accusation of wrongdoing. It is essentially a cautionary prompt encouraging taxpayers to recheck their filings before the revision window closes. While ignoring the alert despite genuine discrepancies could increase the chances of scrutiny later, honest taxpayers with accurate returns and supporting documents have little reason to worry.
