A new Income Tax Department SMS says that many ITR refunds are “Income Tax Refund Under Risk Management.” This is not a scrutiny notice. It means the department has kept the refund on temporary hold to verify mismatches in donations, foreign assets, high-value transactions, or unusually high refund claims. Taxpayers should review their ITR, check AIS/26AS, and file a revised return if any detail is incorrect. Genuine taxpayers with proper documents have nothing to worry about.

A Sudden Income Tax Message Leaves Taxpayers Confused

Over the past week, countless taxpayers across India have received an unexpected SMS from the Income Tax Department. The message says their income tax refund has been “identified under risk management process” and that processing has been kept on hold due to “certain discrepancies.”
This notification has triggered widespread confusion, especially because many individuals who received it believe their filings were accurate and supported by documents.

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Social media platforms like X (formerly Twitter) and LinkedIn are filled with people saying the message arrived late at night, caused anxiety, and in several cases referred to an email that never reached them. This has led many to ask a simple but urgent question: What does ‘income tax refund under risk management’ actually mean?

Because “risk management” is also a major focus keyword for searchers, this article explains the meaning clearly and in human-friendly language.

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Why Taxpayers Are Receiving the ‘Risk Management’ SMS

Tax professionals say the alert does not automatically mean wrongdoing. Instead, the risk management message income tax system places certain returns under additional checks to ensure accuracy before releasing refunds.

Different taxpayers reported different triggers, but several common reasons stand out:

1. High Refund Amounts

When the refund claimed appears higher than typical patterns for similar profiles, the system temporarily flags the return.
This is automated and does not imply fraud.

2. Donation Claims

Chartered accountants say donation claims—especially political donations or deductions under Section 80G—often trigger internal verification.

3. Foreign Asset Reporting

Taxpayers who disclosed foreign assets, foreign bank accounts, or overseas investments frequently reported receiving the alert.

4. Demat and Capital Gain Reporting

Some taxpayers who declared high-value trades or long-term capital gains from Demat accounts were also flagged.

5. Mismatch Between AIS and ITR

A common reason is mismatch between:

• Annual Information Statement (AIS)
• Form 26AS
• Form 16 / Form 16A
• Reported income and deductions in the ITR

Such mismatches can lead to the refund being marked “on hold.”

The department has not officially published a list of triggers, but CA professionals strongly believe these are the main filters used in the income tax refund under risk management process.

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What ‘Under Risk Management’ Actually Means

The phrase has worried many taxpayers because it sounds similar to a scrutiny notice or compliance action.
But experts clarify that this is not a scrutiny notice.

According to tax experts:

This alert means:

• Your refund is temporarily kept on hold.
• The system wants to run additional internal checks.
• You are being advised to review your return before the revision deadline.
• No officer has issued a formal inquiry.
• The system may later issue an email listing the exact discrepancy.

This alert does NOT mean:

• You are accused of tax evasion.
• You are under scrutiny assessment.
• You will have to pay a penalty.
• You must compulsorily revise your return.

In simple terms, the department has placed the return in a risk-filter queue, and once checks are done, refunds will resume if everything matches.

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Why the Message Is Causing Panic

Taxpayers say the wording of the SMS is unclear and creates fear. It arrives late in the evening, mentions “discrepancies,” and refers to a detailed email that many people never receive.

Tax experts say that improvements in communication could prevent panic.
Many taxpayers feel that a clearer message such as “Your refund is under routine verification; no action is required unless you receive further communication” would help.

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What Should Taxpayers Do Now? A Step-by-Step Guide

This section includes focus keywords naturally and provides clear, actionable steps.

1. Double-check your ITR

Review each income source, deduction, and exemption.
If anything was entered incorrectly, file a revised return before December 31.

2. Verify AIS and 26AS

Mismatches in these two documents are one of the biggest triggers for the income tax refund on hold status.

3. Upload Correct AIS Feedback

If a transaction in AIS does not belong to you, provide feedback:

• “Information is not correct”
• “Information is duplicate”
• “Information is denied”

4. Gather all supporting documents

This includes:

• Donation receipts
• Capital gain statements
• Foreign asset declarations
• Bank statements
• TDS certificates

5. Wait for the official email

If your filings are accurate and fully supported, you do not need to revise the return. Processing will resume after internal checks.

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Is This Alert a Cause for Worry?

Tax experts are clear:
Genuine taxpayers with correct details and supporting documents have nothing to worry about.

Why?

• It is not a notice.
• It does not start scrutiny.
• It is an automated filter.
• Refunds are released once checks are completed.

The only risk is if a taxpayer ignores real mismatches and fails to revise the return before the deadline.

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Typical Red Flags That Trigger “Risk Management”

Below is a simple table summarizing situations where returns may be held for verification.

Common Triggers for Income Tax Risk Management Alerts

Trigger Type	Example Scenarios	Impact
High Refund Claims	Refund significantly higher than last year	Temporary hold
AIS Mismatch	Bank interest not declared	Additional verification
Donation Claims	80G / political donations	Flagged for proof
Foreign Assets	Overseas income or property	Detailed review
Capital Market Reporting	High-value share trades	Transaction match check

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How Long Will Refunds Be Delayed?

There is no official timeline. However:

• Most cases get cleared within 1 to 6 weeks.
• Cases with donation or foreign asset claims may take a little longer.
• If the taxpayer responds quickly to any email, clearing time reduces.

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Should You File a Revised Return?

Only if:

• A detail was incorrectly entered.
• Income or interest was missed.
• TDS was wrongly claimed.
• Donation information was incomplete.

Do not revise your return unnecessarily because revision replaces your original return.

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How to Avoid Future Risk Management Flags

1. Ensure AIS matches ITR before filing

2. Keep proof of all deductions

3. Avoid guesswork in reporting capital gains

4. Report even small incomes like savings interest

5. Check auto-filled ITR fields before submitting

These habits reduce the chances of receiving alerts in future assessment years.

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