ITR Refund Delays in FY 2025-26: Over 27 Lakh Returns Still Pending Despite High Processing Rate

Last updated: 27 March 2026


Quick Summary
Despite a high processing rate, many taxpayers are facing delays in receiving their Income Tax Returns (ITRs) for FY 2025-26, with over 27 lakh verified returns still awaiting processing. This backlog is largely attributed to automated systems and stringent data validation processes. Minor mismatches between ITRs and other financial statements like AIS and Form 26AS, increased system scrutiny driven by AI, pending e-verification, and complex returns can all contribute to significant delays, sometimes stretching to several months.

Refund Delays Persist Despite Record ITR Processing Income tax refund delays have once again emerged as a key concern for taxpayers in FY 2025-26, with many still waiting months after filing their returns. While the Income Tax Department has processed a majority of returns, official data reveals th
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FAQ :

As of March 24, 2026, over 27 lakh verified Income Tax Returns (ITRs) were still unprocessed, leading to delays in refunds for taxpayers.

Refund delays are primarily caused by data mismatches across systems (ITR, AIS, Form 26AS), increased scrutiny by AI-driven validation tools, pending e-verification, a rush of last-minute filings, complex or high-value returns, and incorrect or unvalidated bank details.

The government's refund system is now largely automated and focused on accuracy and fraud prevention. Any discrepancies found during data cross-verification trigger secondary validation, which can delay processing instead of immediate issuance.

Simple, error-free returns are typically processed within a few weeks. Returns with mismatches usually take 2-4 months, and complex or high-risk cases may take even longer.

To avoid delays, taxpayers should ensure immediate e-verification, match their ITR with AIS, TIS, and Form 26AS before filing, pre-validate their bank account linked with PAN, respond promptly to any notices, and regularly track their refund status.

No, timely filing is no longer sufficient. Data consistency and accuracy, ensuring all financial information aligns across different statements, are now crucial for receiving refunds faster.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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