Many taxpayers who have claimed an income tax refund for AY 2025-26 are receiving an SMS from the Income Tax Department stating that their ITR processing has been put on hold under the risk management framework.

In several cases, taxpayers report that they received only an SMS and no detailed email, which creates confusion and panic.

If you have received a message similar to the one below, this article explains what it really means, why it happens, and what action you should take.

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SMS Received from Income Tax Department – Sample Text

It was noticed that a claim of refund has been made in the Income-Tax Return for PAN XXXXXXXXN, for AY 2025-26 filed by you.
Processing of the said return has been put on hold as it was identified under risk management framework on account of certain discrepancies in the claim of refund.
An email with details has also been sent to your registered email address.
As the time-limit for filing of Revised Return for AY 2025-26 will expire on 31/12/2025, you are requested to avail the opportunity to file a revised return within the due date.
An updated return may be alternatively filed from 01.01.2026, however with additional tax liabilities.

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What Does “ITR Processing Put on Hold” Mean?

When your ITR is put on hold, it means:

• Your return has not been rejected
• Refund has not been denied permanently
• The department has paused automatic processing due to risk indicators
• Further verification or correction is expected

This is a system-driven action, not a personal notice from an Assessing Officer.

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Why Did You Receive This Message Even Though No Email Came?

Although the SMS says that an email has been sent, in practice:

• Emails often land in Spam / Promotions
• The registered email ID may be old or incorrect
• There can be system delays

Important:
Always log in to the Income Tax Portal → e-Proceedings / e-Communication to check messages instead of relying only on email.

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Common Reasons Why Refund Claims Are Flagged (Very Important)

Based on recent trends and practical experience, refund claims are commonly put on hold for the following reasons:

1. Deductions Claimed in ITR but Not Reflected in Form 16

If deductions under Chapter VI-A (80C, 80D, 80G, etc.) are claimed in the ITR but not considered by the employer in Form 16, the system flags the difference.

2. Excess HRA or Salary Exemptions Claimed

Claiming higher HRA exemption in the ITR than what appears in Form 16, or recalculating HRA without proper support, is a major trigger.

3. Change of Tax Regime to Claim Refund

Switching between old and new tax regime (Section 115BAC) only to generate a refund is closely monitored, especially where the refund amount is significant.

4. Excessive Claim under Section 80GGC

Large claims under Section 80GGC (political party donations) have been under scrutiny. High-value or unusual donations often lead to refund holds.

5. Very High Refund Compared to Total TDS

If the refund claimed forms a large percentage of total TDS deducted, it is treated as high-risk.

6. Mismatch with AIS or Form 26AS

Any mismatch between:

• Income shown in ITR, and
• Data available in AIS / Form 26AS
  can stop refund processing immediately.

7. Too Many Exemptions Under Salary Head

Claiming multiple exemptions and deductions under salary that appear disproportionate to income raises red flags.

8. HRA Above ₹6 Lakhs Without TDS on Rent

If:

• HRA claimed exceeds ₹6 lakh, and
• No TDS is deducted on rent under Section 194-IB,
  the claim is often questioned.

9. Other Risk Parameters

The department also uses historical data, pattern analysis, and behavioural indicators which are not always disclosed.

 

Many refund holds under the risk management framework also occur due to unreported foreign assets or income appearing in AIS via international data sharing. If you hold any foreign bank account, shares, property, or signing authority abroad, make sure you’ve disclosed them in Schedule FA.

Learn everything about mandatory foreign asset disclosure and avoid heavy penalties here: Foreign Assets Disclosure in ITR – Schedule FA Guide

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What Should You Do After Receiving This SMS?

Step 1: Log in to the Income Tax Portal

Check:

• ITR status for AY 2025-26
• Any communication under e-Proceedings

Step 2: Re-check Your ITR Thoroughly

Verify:

• Deductions vs Form 16
• HRA calculation
• Tax regime selected
• AIS / 26AS matching- You can read more about it by clicking here
• Refund computation

Step 3: Decide Whether to File a Revised Return

If you find any error or aggressive claim, file a Revised Return under Section 139(5) before 31 December 2025.

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⚠️ Important Deadline You Must Not Miss

Particulars	Date
Last date to file Revised Return (AY 2025-26)	31-12-2025
Updated Return allowed from	01-01-2026 (with extra tax & penalty)

Filing an Updated Return later will involve additional tax liability, so correction before 31 December is always advisable.

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Need Professional Help?

If you are unsure whether:

• Your refund claim is correct

• You should revise or wait

• A notice may follow

You should get your return reviewed by a professional.

What If You Have Already Filed a Revised Return?

If you have already corrected the issue and filed a Revised Return, you can safely ignore the SMS. Processing will resume once the system validates the revised data.

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FAQs

Q. Is this message a notice?
No. It is a risk alert, not a scrutiny notice.

Q. Will my refund be cancelled?
Not necessarily. It is pending verification.

Q. Can refund come without revising the return?
Yes, if claims are correct and verified.

Q. Should I wait or revise immediately?
If any doubt exists, revise before 31-12-2025.

 

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Final Takeaway

An “ITR on hold due to refund claim” message does not mean trouble, but it should not be ignored. Most cases are resolved smoothly by timely review and correction.

Early action = faster processing + lower risk.

 

Disclaimer:

The information provided in this article is intended for general informational purposes only and does not constitute professional tax advice. While every effort has been made to ensure accuracy, individual circumstances may vary and tax laws can change. You should consult a qualified Chartered Accountant or tax professional before taking any action based on the contents of this article. Neither the author nor the website accepts responsibility for any loss or liability arising from reliance on this information

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