Quick Summary
A parliamentary panel has raised concerns over the increasing delay in processing income tax refunds in India. According to the latest report tabled in Parliament, nearly 27 lakh refund cases in FY 2025-26 were processed after the standard 90-day timeline, highlighting growing pressure on the tax ad
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FAQ :
The parliamentary panel is concerned about the sharp increase in delays for processing income tax refunds, with a significant number of cases exceeding the standard 90-day timeline.
Around 27 lakh income tax refund cases were delayed beyond the 90-day processing period in FY 2025-26.
The delays are partly due to the Income Tax Department intensifying verification measures to detect and prevent fraudulent deduction claims, especially those related to bogus donations.
The total outstanding direct tax arrears reached Rs 47.42 lakh crore as of January 31, 2026.
The panel has recommended the creation of an inter-departmental task force to conduct a comprehensive review and develop a long-term strategy for addressing uncollectible tax arrears.
Yes, the tax department has encouraged voluntary revisions of incorrect claims, leading to over 50 lakh updated returns filed and a reduction in refund claims.
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