Mumbai, January 20: More than 53 lakh taxpayers in India are still awaiting the processing of their Income Tax Returns (ITRs) for the Assessment Year 2025-26, according to recent data from the Income Tax Department. Despite a record 8.8 crore filings and the successful processing of over 8.1 crore returns, a significant backlog remains. For many, this delay means a longer-than-expected wait for tax refunds that typically arrive within a few weeks of filing.

The delay is largely attributed to the department's enhanced security and verification protocols. Authorities have intensified cross-verification of returns against the Annual Information Statement (AIS) and other financial data to minimize errors. While these measures ensure accuracy, they have also created a bottleneck for millions of taxpayers whose refunds are currently on hold pending deeper scrutiny. ITR Refund Delay: Why Income Tax Refunds Are Late and What Taxpayers Should Do.

Why Income Tax Refunds Are Delayed?

One major factor is the "NUDGE" compliance initiative, where the Central Board of Direct Taxes (CBDT) uses data analytics to flag discrepancies. If a return shows a mismatch with bank interest, dividends, or high-value transactions, it is placed on hold. The taxpayer is then notified to rectify the error before the refund can be released.

Additionally, the volume of filings this year has reached historic highs. This surge has placed immense pressure on the Centralised Processing Centre (CPC), leading to a queue that is taking longer than usual to clear. Technical issues, such as unvalidated bank accounts or a lack of PAN-Aadhaar linkage, also continue to stall payments. Budget 2026: Joint Tax Filing Proposal May Double Income Tax Exemption for Married Couples to INR 8 Lakh.

What to Do if Your Refund is Delayed

Taxpayers still waiting for their money should first verify their refund status on the official e-filing portal. By navigating to the "View Filed Returns" section, users can see if their ITR is "Successfully e-Verified," "Under Processing," or if a "Refund Failure" has occurred.

If the status indicates a mismatch, taxpayers should check their communication inbox for any "NUDGE" notifications or outstanding demands. In many cases, a simple response to a department query or a "Revised Return" can resolve the issue and trigger the refund process.

Steps for Faster Resolution

Ensuring your bank account is "Pre-validated" on the portal is a critical step that many overlook. Even if a return is processed, the department cannot credit the funds if the bank details are not confirmed. Taxpayers are also advised to check their AIS/TIS (Taxpayer Information Summary) to ensure the income reported matches the department's records.

As the department continues to clear the remaining 53 lakh pending cases, officials suggest that patience and proactive checking of the portal are the best ways to ensure that any hurdles are cleared quickly.

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(The above story first appeared on LatestLY on Jan 20, 2026 11:32 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).