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New Delhi: This time the wait has become too long for those who are eligible to get Income Tax refund. Crores of returns have been processed for the Assessment Year 2025-26, but despite this, millions of taxpayers are still waiting for their refunds. For many, this question is disturbing that when the return has been filed and verified, then why is there a delay in processing and refunds.
According to the data of the Income-Tax Department, about 8.8 crore ITRs have been filed for AY 2025-26 till 11 January. Of these, 8.68 crore returns have been verified and 8.15 crore returns have been processed. Despite this, about 53 lakh returns are still pending for processing. In these pending cases, there are a large number of taxpayers who are yet to get a refund.
This time the biggest reason for the delay is believed to be the strict investigation process of the Income Tax Department. Especially more attention is being paid to those returns where large or unusual refunds have been claimed. Now returns are not only being passed through the automatic system, but in many cases they are being separated for manual testing.
This year the Income Tax Department has increased the use of data analytics and automated risk filters. Returns that show a difference between declared income and AIS or Form 26AS figures are immediately flagged by the system. In such cases, processing stops and taxpayers get prompts for revision or clarification. This is the reason why the speed of automated processing has become slower than before.
Another reason for the delay is the second phase of the NUDGE initiative, which was implemented by the Central Board of Direct Taxes. Under this, data related to foreign income and foreign assets is being examined. Based on the AEOI data of FY 2024-25, it is being seen whether any taxpayer has hidden foreign income or assets in his ITR. In this process, the returns which are suspected are being processed more carefully, which is causing delays in refunds.
Apart from these two reasons, there were other reasons for the delay in refunds. This year the last date for filing returns was extended twice. First, the time was given from 31 July to 15 September and then 16 September 2025. The result was that many returns were suddenly filed in September and the pressure on the processing system increased. Apart from this, the difference in data received from banks, employers and mutual funds is also slowing down the processing. Some complex and refund-heavy cases are now being investigated at the officer level.
For taxpayers who were unable to file their returns by the due time, the last date for belated returns was 31st December 2025. Now they only have the option of updated returns, which can be filed under Section 139 (8A). However, this option is not for claiming or extending a refund, but to report the missed income or to correct a mistake. Additional taxes and penalties may also be levied.
Those whose returns have been filed and verified but have not been processed should check the status regularly on the income tax portal. Bank account verification must be completed. If you receive an email or SMS from the department, you should reply immediately. If there is an error in AIS or Form 26AS and amendments are allowed, it is better to file revised returns in time.
In times of strict scrutiny and good compliance, it may take time to get a refund, but with the right information and timely action, unnecessary delays can be avoided.
