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The deadline for filing income tax returns (ITR) for the assessment year 2025–26 was September 15, later extended by one day. While millions of taxpayers rushed to file their returns early in June and July, expecting quick refunds, many are still waiting. In fact, several returns have not even been processed yet, leaving taxpayers frustrated and confused about the delay.

A Record Number of Returns Filed This Year

According to official data, 7.58 crore returns were filed for AY 2025–26. Out of these, 6.87 crore have already been verified. As of September 22, the Income Tax Department had processed 5.01 crore returns, which means over one crore returns remain pending. For those waiting for refunds, this backlog is one of the major reasons behind the delay.

Why Refunds Are Taking Longer Than Usual

Tax experts point out that the main reason for the delay this year is the department’s increased focus on verification and scrutiny. Returns claiming higher deductions, exemptions, or refunds are undergoing additional checks. According to Tarun Garg, Director at Deloitte India, cases where TDS data does not match, bank account details are incorrect, or e-verification was delayed are more likely to face processing lags.

He explains that while simple salaried returns are usually processed within two to five weeks after e-verification, cases involving capital gains, foreign assets, or significant deductions take longer. Taxpayers under the old tax regime with multiple claims, self-employed professionals, NRIs, and those declaring overseas assets are facing more detailed scrutiny this year.

Experiences of Early Filers

Several taxpayers who filed their returns as early as June are still waiting for refunds. One taxpayer shared, “I filed my return in June hoping to get my refund early. But even after three months, the money has not been credited to my account.” Many others who filed before the deadline echo this concern, questioning why their returns are stuck in processing despite timely submission.

Additional Checks for Complex Cases

Sandeep Sehgal, Partner (Tax) at AKM Global, adds that returns involving multiple income sources, foreign income, or mismatches in Form 26AS or AIS undergo deeper verification. Large refund claims also attract closer scrutiny. Another common issue is unvalidated bank accounts—if the account is not pre-validated, refunds cannot be issued on time.

While most taxpayers ensure these details are correct, even small discrepancies can hold up the refund process. Experts emphasize that while the system is robust, the increased verification workload this year has slowed down the overall pace.

Refunds Typically Processed Faster in Simple Cases

In normal circumstances, straightforward salary-based returns with correct TDS data are processed quickly. The delay is mostly affecting taxpayers with complex profiles or larger claims. Experts advise patience, noting that although the system is slower this year, refunds are still being issued in batches once checks are cleared.

Current Status of Processing

With 13.49 crore registered individual users and millions of returns filed, the system is handling one of its busiest years. By September 22, more than 5 crore returns had already been processed, but over 1 crore are still pending. This gap indicates that many taxpayers, especially those with more complex returns, may need to wait a few more weeks before receiving refunds.

What Taxpayers Should Do

Experts recommend that taxpayers double-check whether:

• Their bank account is pre-validated on the income tax portal.

• E-verification of the return was completed on time.

• There are no mismatches between TDS, Form 26AS, and AIS data.

If all details are correct, the delay is likely due to additional scrutiny and taxpayers simply need to wait. Those with urgent concerns can raise queries through the income tax portal or contact the department’s helpline.

Final Word

While early filers expected faster refunds this year, the increased emphasis on verification and scrutiny has slowed down the process. The Income Tax Department’s cautious approach aims to minimize fraud, ensure accuracy, and cross-check high-value claims. With more than one crore returns still pending, taxpayers should prepare for possible delays but remain assured that refunds will be credited once verification is complete.