ITR Refund Scam Alert: How to Spot Fake Income Tax Emails and Stay Safe

The Income Tax Department has officially warned taxpayers about a rising wave of phishing scams disguised as income tax refund notifications. On August 7, 2025, the department posted an urgent advisory, warning individuals against clicking on suspicious links in emails that falsely claim there has been an error in tax calculation and that a refund is due.

Many of these fake emails look convincing, using addresses like "donotreply@incometaxindiafilling.gov.in" (note the misspelling). Such addresses are not linked to the official income tax portal. Clicking on these links can compromise your personal and financial information, leading to identity theft or direct bank fraud.

How These Fake ITR Refund Emails Work

Fraudsters know that ITR filing season is when taxpayers are expecting communication from the Income Tax Department. They exploit this by sending emails that:

• Claim a refund is pending due to a “calculation error”
• Contain urgent-sounding instructions to click a link
• Direct users to a fake income tax website that looks genuine
• Ask for confidential details like PAN, Aadhaar, bank account information, passwords, or OTPs

These scams work because they mimic the tone, design, and format of official income tax e-filing communication. However, the department never asks for sensitive details over phone, email, or SMS."

Steps to Verify Authenticity of Income Tax Emails

Before acting on any income tax-related email, follow these steps to ensure it’s legitimate:

1. Check the sender’s email domain – Official communications only come from @incometax.gov.in.
2. Avoid clicking links directly – Always log in to the official income tax e-filing portal to check for updates.
3. Look for spelling or grammar errors – Fraudulent emails often contain minor mistakes.
4. Verify with the helpline – If in doubt, contact the Income Tax Department via the official helpline before responding.

These checks are especially crucial as phishing emails are becoming more sophisticated each year.

Why This Scam Is Spreading Now

The last date to file ITR for AY 2025–26 (non-audit cases) is September 15, 2025. As the deadline approaches, taxpayer activity increases, and fraudsters exploit the rush.

The numbers speak for themselves:

• 6 crore ITRs filed as of August 7, 2025
• 6 crore returns verified
• 13 crore verified returns processed

With millions of taxpayers checking for ITR refund updates, scammers are betting that at least a small percentage will fall for fake messages.

Also Read: PAN Misused? Here’s How to Catch Hidden Loans on Your Name

Official Process for ITR Refunds

To avoid being misled, every taxpayer should know the official process for receiving an ITR refund:

• After filing and e-verifying your ITR, the return is processed by the Centralized Processing Centre (CPC).
• If eligible for a refund, you will get a notification on the income tax portal and via official email/SMS.
• Refunds are credited directly to your bank account linked to your PAN and validated on the portal.
• The Income Tax Department never sends refund links via email.

If you receive a refund-related email with a clickable link, consider it suspicious."

What to Do If You Receive a Fake Refund Email

If you believe you’ve received a phishing email in the name of the Income Tax Department, follow these steps immediately:

• Do not click on any links or download attachments
• Take a screenshot of the email for reporting purposes
• Forward the email to webmanager@incometax.gov.in for verification
• Delete the suspicious email from your inbox and trash folder
• Run a quick antivirus scan on your device to ensure no malware was installed

Reporting phishing attempts helps authorities track and shut down fraudulent domains faster.

Common Signs of an ITR Refund Phishing Scam

Look out for these red flags:

• Email sender address has extra words, numbers, or misspellings
• Urgent or threatening tone (“Act now or lose your refund”)
• Requests for confidential information (passwords, OTPs)
• Refund link that redirects to a non-official website
• Poor language quality, typos, and formatting errors

Being able to spot these signs quickly can save you from financial loss.

How to Keep Your ITR Safe from Fraud

Preventing scams is not just about identifying fake emails—it’s about strengthening your overall digital safety:

• Enable two-factor authentication on your income tax account
• Keep your registered email and phone number updated on the portal
• Regularly check the ‘My Account’ section on the income tax portal for notices
• Use secure passwords and avoid sharing them with anyone
• Be wary of agents or consultants promising faster refunds

Also Read: Received a Notice for Political Donations? Here's What You Must Know

Key Takeaways

• The Income Tax Department will never ask for confidential details like passwords or OTPs over email.
• Only trust emails from @incometax.gov.in.
• Always respond to notices via the official e-filing portal.
• Report phishing to webmanager@incometax.gov.in
• Stay alert, especially in the weeks before the ITR filing last date.

Final Word

With cyber fraud becoming increasingly sophisticated, staying alert is the best defense. If you’ve filed your income tax return for AY 2025–26, keep track of your refund status only via the official income tax portal.

Do not trust any unsolicited email claiming there’s a tax calculation error or that you’re due a refund. One careless click can compromise your identity, your bank account, and your peace of mind.