ITR Refunds 2025: Do Salaried Taxpayers Really Get Faster Refunds Than Business Filers?

With refund delays stretching longer than usual this year, a common question among taxpayers is resurfacing: Do salaried individuals get their refunds quicker than business taxpayers?

For Assessment Year (AY) 2025–26, the pace of refund processing has slowed significantly, making this debate more relevant than ever.

Refunds Slower Despite High Filing Numbers

The ITR filing deadline for AY 2025–26 ended on September 16, with more than 7.5 crore returns filed as of November 27, according to the Income Tax Department.

However, refunds have not kept pace. Official data shows:

• Refunds down nearly 18%, totalling ₹2.42 lakh crore so far

• Net direct tax collections up 7% YoY

This means collections are increasing, but refunds this year are being released more conservatively.

Why Refunds Are Delayed in 2025

The Income Tax Department has explained that a key reason for the slower pace is enhanced scrutiny of refund claims.

Refunds are taking longer because:

• High-value refund claims are being examined more closely

• Returns flagged for mismatches or unusual deductions undergo manual review

• Cases with excessive or questionable claims are being verified

• Taxpayers are being asked to file revised returns in some mismatched cases

This increased compliance check aims to reduce errors and prevent wrongful refunds—but naturally slows down processing.

Do Salaried Individuals Get Refunds Faster?

Many assume salaried individuals are processed before business filers. While salaried taxpayers often receive refunds faster, this is not due to preferential treatment.

Why Salaried Taxpayers Often See Faster Refunds

• Their income structure is simple

• Form 16 captures most details accurately

• Few deduction claims = fewer mismatches

• System processes these returns quickly unless flagged

Why Business Taxpayers Face More Delays

Business professionals typically report:

• Multiple income sources

• Business expenses

• Depreciation

• Capital gains

• Loss set-offs

• Large deduction claims

These elements increase the chances of:

• System-generated red flags

• Manual scrutiny

• Queries from the tax department

However, accurate books, clean disclosures, and timely filing can help business taxpayers get refunds just as quickly.

What Matters Most in Refund Speed (in 2025)

Regardless of the taxpayer category, three factors determine refund speed:

1. Timing of Filing

Early filers get processed before peak-season backlog builds up.

2. Complexity of Income

Simple single-source income = faster processing
Multiple components = slower due to checks

3. Accuracy and Clarity

Fewer mismatches mean faster automation
Responding quickly to portal queries also speeds processing

So, Who Gets Faster Refunds?

There is no inherent prioritisation between salaried and business taxpayers.
The difference is structural:

• Salaried taxpayers appear faster because their returns are simpler.

• Business filers can be equally fast, provided filings are accurate, well-documented, and submitted early.

Bottom Line

Refund speed in 2025 depends more on:

• How early you file

• How accurate your return is

• How simple your financial structure is

• How quickly you respond to queries

—not whether you are salaried or run a business.