Lower income tax refunds for FY 25-26: Here's why taxpayers are getting less refunds; check what CBDT data shows

Tax refunds for FY 2025-26 have seen a significant drop compared to FY 2024-25. This comes as gross tax collections have increased. Experts suggest this trend reflects the Income Tax Department's enhanced ability to identify fraudulent deductions and income misreporting. This leads to more accurate tax collections and a more transparent system.