The deadline for filing income tax returns has passed, revealing a significant delay in the processing of refunds. The Income Tax Department, which has 134.9 million individual registered users, reported
that by September 16, 75.8 million returns had been filed for the assessment year 2025-26.
This year, taxpayers are experiencing prolonged wait times for their refunds. Despite filing their returns in June or July, many have yet to receive their refunds. Experts attribute this delay to the department’s intensified focus on verification and scrutiny procedures. They said that returns with substantial refund amounts, significant deduction claims, or exemptions are being examined more rigorously.
As of September 22, the Income Tax Department data shows that 50.1 million returns had been processed, leaving over 10 million returns still pending. Taxpayers may face further delays for their refunds.
According to a Moneycontrol report, Tarun Garg, director at Deloitte India, explains that the heightened scrutiny on verification procedures is the primary cause for the delay. Returns with larger refund amounts, high deduction claims, or exemptions require thorough examination.
Additional factors such as TDS data mismatches, inaccurate bank account information, and delays in e-verification also contribute to slower processing times.
Garg explained that typically, returns for ordinary salaried individuals take two to five weeks to process after e-verification, whereas those with capital gains, foreign assets, or high deductions take longer.
Sandeep Sehgal, Partner (Tax) at AKM Global, noted that returns involving large refund amounts, multiple sources of income, foreign income, and mismatches in Form 26AS/AIS are subject to extra verification. Furthermore, refunds are delayed if bank accounts are not pre-validated, although most taxpayers are aware of these minor errors.
