More than 8 crore income tax returns or ITRs were processed in the assessment year 2025-26, despite this, more than 50 lakh taxpayers have not yet received their refund. He is still waiting for his return to be processed and refund issued. According to Financial Express news, current data from the Income Tax Department shows that as of January 11, about 8.8 crore ITRs have been filed for assessment year 2025-26. Out of which 8.68 crore returns have already been verified. Also 8.15 crore returns have been processed. Thus, if calculated, approximately 53 lakh ITRs are still pending for processing, many of which are related to refund claims. After all, why is there a delay this year? Let us understand here why the refunds are stuck.
The investigation has been strict
According to the news, experts say that the main reason for this is the strict investigation by the tax department. Especially in cases related to refund, investigation is being done strictly. He says the Income Tax Department has increased risk-based reviews, in which returns with large or unusual refund claims are being flagged for manual verification. Mismatch with automated risk filters and AIS/Form 26AS is causing delays in processing and asking for revisions. Returns that show income mismatches, differences in tax credits, or unusually high refund claims are being singled out for closer scrutiny, slowing down automated processing.
NUDGE Initiative adds another layer of verification
Experts also say that the delay in refunds is due to the second phase of the NUDGE initiative launched by the Central Board of Direct Taxes (CBDT). In this, tax authorities are using AEOI (Automatic Exchange of Information) data for FY 2024-25 to identify cases where foreign assets or foreign income may not have been disclosed in the ITR for AY 2025-26.
More filing near deadline
This is also one of the reasons behind the delay. ITR filing deadline extended twice for assessment year 2025–26. First from July 31 to September 15, and then extended by another day to September 16, 2025. This led to a huge rush of filings in September, increasing the processing backlog. Additionally, system alerts are being triggered by discrepancies between income reported by taxpayers and data reported by banks, employers and mutual funds.
What should those who have not received their refund do?
For those whose returns have already been filed but have not been processed yet, experts advise to regularly check the ITR status on the income tax portal. Ensure that bank account validation is completed. Respond immediately to any email or SMS alert coming from the department. If permitted, file a revised return in case of any material error in the data.
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