Nearly 24.6 lakh income tax returns are pending for processing for over 90 days, the government told Parliament, citing technology-driven risk analysis and NUDGE compliance campaigns as the key reasons behind delayed tax refunds.
Tax refunds delay: Nearly 24 lakh ITRs pending for processing for more than 90 days, govt explains why
Nearly 24 lakh income tax returns (ITRs) for AY 2025-26 have remained pending for processing for over 90 days till 4th February 2026, the government told Parliament, triggering concerns among taxpayers — especially senior citizens — who have been waiting for their tax refunds for months.
In a written reply in the Rajya Sabha, the Finance Ministry clarified that these delays are largely linked to technology-driven risk analysis and compliance campaigns run by the Income Tax Department, and not due to any blanket action against honest taxpayers.
What was asked in Parliament
The issue was raised by Rajya Sabha MP Deepak Prakash, who questioned the government on whether the Income Tax Department had sent large-scale messages in late December 2025 asking taxpayers to revise their returns within a short window of three to four days.
He also sought clarity on why refunds of honest taxpayers—particularly senior citizens—were being put on hold without clearly pointing out discrepancies, and asked how many ITRs were pending for more than 90 days as of January 31, 2026.
Why taxpayers received “revise your return” messages
Responding to the query, Minister of State for Finance Pankaj Chaudhary said the messages were part of the NUDGE (Non-intrusive Usage of Data to Guide and Enable) campaigns undertaken by the Central Board of Direct Taxes.
“These are extensive technology-driven initiatives that leverage data analytics, behavioural insights and digital communication platforms,” the minister said, adding that the aim is to encourage voluntary compliance rather than post-facto enforcement.
Under these campaigns, select taxpayers are asked to review or revise their already-filed returns if potential risks are detected.
Who was selected under the NUDGE campaign
According to the government, taxpayers were chosen based on advanced risk analysis, which flagged cases of:
Non-disclosure of foreign assets or foreign income
Incorrect or excess claims of deductions or exemptions
Wrong claims under sections such as 80G, 80GGC and 80E
“The select taxpayers are mainly those who have not disclosed their foreign asset holdings or income or have claimed incorrect deductions,” the minister said in his reply.
What is SAKSHAM and how it works
The NUDGE campaign is implemented through a seven-stage strategy called SAKSHAM, which includes:
Sankalan – Collection of data from multiple sources
Anusandhan – Analysis and risk identification
Kriyanvyan – Converting insights into targeted action
Sampark – Proactive communication with taxpayers
Hastak – Handholding and facilitation
Adhikaar – Ensuring taxpayer rights and transparency
Mulyankan – Continuous monitoring and evaluation
The government said this framework is designed to be non-intrusive and to foster trust while improving compliance.
Impact of the campaign so far
The Finance Ministry shared data to show the scale of the NUDGE exercise over the last two years:
1.11 crore updated or revised ITRs filed
Rs 6,976.50 crore additional tax paid under Section 140B
Rs 1,834.09 crore reduction in refund claims or additional tax paid in December 2025
Rs 8,810.59 crore overall revenue impact
Nearly 24.6 lakh ITRs pending beyond 90 days
On the core issue of refund delays, the government revealed that out of 8.79 crore ITRs filed for Assessment Year 2025-26, a total of 24,64,044 returns were pending for processing for more than 90 days as of February 4, 2026.
This admission confirms that a significant number of taxpayers are still waiting for refunds well beyond the normal processing timeline.
No special relief plan for senior citizens
Crucially, the government also stated that no separate or time-bound measures are currently being contemplated to fast-track refunds, even for senior citizens.
“There are no such measures contemplated,” the minister said in response to whether the government plans special steps to clear long-pending refunds.
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