If your income tax refund has not yet been credited, you are not alone. Recent data shared in Parliament shows that for Assessment Year (AY) 2025–26, around 8.80 crore Income Tax Returns (ITRs) were filed. Of these, approximately 24 lakh returns have remained pending for more than 90 days.
While more than 97% of returns have been processed, lakhs of taxpayers are still awaiting refunds. Here’s what could be causing the delay.
Refunds are issued only after the return is processed under Section 143(1) of the Income Tax Act by theIncome Tax Department.
If your return status on the e-filing portal shows “Under Processing,” it means the department has not yet completed the assessment. Until processing is completed, no refund can be credited.
Delays at this stage may occur due to:
Data mismatches in reported income
Differences in tax credit statements (Form 26AS/AIS)
Verification of deductions and exemptions
Additional compliance checks
Even if your status shows “Processed with refund due,” the amount may not be credited if there is a problem with your bank details.
Refunds are transferred only to a pre-validated bank account linked with your Permanent Account Number (PAN). If the account is inactive, not validated, or has incorrect details, the refund transaction may fail.
In such cases, taxpayers must:
Update or pre-validate bank account details
Ensure PAN is correctly linked
Submit a refund reissue request through the portal
Filing the ITR alone is not sufficient. The return must also be e-verified within the prescribed time limit. If not verified, the return is treated as invalid, and no refund is processed.
Taxpayers can check their verification status on the e-filing portal and complete the process using Aadhaar OTP, net banking, or other available options.
In some cases, refunds are adjusted against pending tax demands from earlier assessment years. If such an adjustment is made, it will be reflected in the taxpayer’s online account, along with details of the outstanding demand.
With over 24 lakh returns pending beyond 90 days, most delays this year appear procedural rather than systemic. The first step is to log in to the income tax e-filing portal and carefully review:
Return processing status
Bank account validation
E-verification status
Any outstanding tax demand
In most cases, the reason for delay is clearly indicated in the portal itself. Taking corrective action promptly can help speed up the refund process.
