More than 73 lakh taxpayers are still waiting for their income tax returns to be processed for AY 2025-26. With December 31 being the last date to file revised and belated ITRs, taxpayers are being urged to check for mismatches, review claims and act quickly to avoid further delays.
Income tax refund delay continues in AY 2025-26, with over 73 lakh taxpayers still awaiting refunds (AI generated image)
For millions of taxpayers, the wait for income tax refunds has stretched longer than usual this year. With just six days left before December 31, the deadline to file revised and belated ITRs for AY 2025-26, anxiety is clearly building among those who are yet to hear from the tax department.
The numbers explain the concern
As of December 25, 2025, around 8.53 crore income tax returns (ITRs) have been filed for the current assessment year. Out of these, 8.41 crore returns have been verified and only about 7.80 crore have been processed so far.
This leaves around 73 lakh taxpayers waiting for their returns to be processed and refunds, if any, to be issued.
Refunds are slower this year — here’s why
Official data shows that income tax refunds worth Rs 2.97 lakh crore were issued between April 1 and December 17, 2025 — a 13.52% drop compared to the same period last year. Earlier data till November had shown an even steeper fall of nearly 18%.
According to the tax authorities, two key factors are behind this delay: Deeper scrutiny of claims, especially high-value or suspicious deductions and exemptions; and late release of official ITR forms, which pushed back the entire processing cycle.
Refund processing for non-corporate taxpayers, in particular, has taken a hit compared to the previous year.
What the tax department is checking more closely
Explaining the delays, Ravi Agrawal, Chairman of the Central Board of Direct Taxes, recently said the department is now relying heavily on advanced data analytics to identify risky or incorrect claims.
These include bogus donations; donations to registered unrecognised political parties (RUPPs); incorrect deductions or exemptions; and errors such as invalid or wrong PAN details of donees.
Such returns are flagged and then subjected to manual verification, which naturally takes more time and slows down refunds.
Why you may still be waiting for your refund
If your refund hasn’t arrived yet, it could be due to mismatch between your ITR and Form 26AS or AIS, incorrect deduction or exemption claims, PAN or bank account validation issues, and your return being selected for deeper verification
What you should do now
With December 31 fast approaching, taxpayers should not wait passively.
Here are a few practical steps:
Check refund status on the official income tax e-filing portal or the TIN-NSDL website
Read emails and SMS alerts carefully — the department often flags issues and seeks clarification
File a revised return, if needed, before December 31, 2025
Raise a grievance on the e-filing portal if there is no communication despite long delays
You can also contact the helpline at 1800-103-0025 or 1800-419-0025
Govt’s ‘nudge’ to taxpayers before the deadline
To reduce disputes and delays, the CBDT has rolled out the Non-intrusive Usage of Data to Guide and Enable (NUDGE) campaign. The idea is simple — give taxpayers a chance to voluntarily review and correct ineligible claims before stricter action is taken.
“It has been observed that certain taxpayers have claimed ineligible refunds by availing deductions or exemptions to which they are not entitled, resulting in understatement of income,” the CBDT said in its official statement.
The department added that cases have been identified using a risk management framework and advanced data analytics, particularly where bogus donations or incorrect PAN details have been reported.
Trust-first approach, not coercive
Importantly, the CBDT stressed that this is a trust-first initiative. Taxpayers with genuine and correct claims do not need to take any action.
The numbers show many are already responding:
Over 21 lakh taxpayers updated returns for earlier assessment years and paid more than Rs 2,500 crore in taxes
More than 15 lakh returns have already been revised for AY 2025-26
The department has advised taxpayers to review their returns carefully and revise them, if required, before December 31 to avoid future enquiries.
For those who miss the deadline, the option to file an updated return from January 1, 2026 will still be available — but it will come with additional tax liability.
For now, with refunds stuck and the clock ticking, the message from the tax department is clear: check, correct, and act before December 31 to avoid further delays.
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