Many taxpayers who filed their income tax returns (ITRs) early this year expected their refunds to be credited promptly. However, as of September 23, several advance filers have reported that their refunds have not yet been processed.
“I filed my return in June, but the refund has not yet been credited to my account,” said one taxpayer, reflecting concerns shared by others who filed returns well before the September 16 deadline.
Why refunds are delayed?
According to Tarun Garg, Director at Deloitte India, delays are largely due to enhanced verification and scrutiny procedures implemented by the Income Tax Department.
Returns claiming large refunds, high deductions, or exemptions often undergo detailed checks.
Mismatches with TDS data, incorrect bank account details, or delays in e-verification can also slow processing.
"Simple salaried returns are typically processed within two to five weeks post-verification, while complex cases involving capital gains, business income, foreign assets, or substantial deductions may take longer," Garg told CNBC-TV18.
Who is most affected?
Taxpayers filing under the old tax regime with substantial deductions, self-employed professionals, NRIs, and individuals declaring foreign assets are more likely to face additional verification.
Sandeep Sehgal, Partner-Tax, AKM Global, said, “Returns involving large refunds, multiple income sources, foreign income, or mismatches with Form 26AS/AIS are being subjected to additional verification.”
He added that refunds may also be delayed if bank accounts are not pre-validated and linked with PAN, contain errors such as incorrect IFSC codes, or are inactive.
In some cases, refunds are adjusted against outstanding tax liabilities before being credited.
Official data on ITR processing
According to the Income Tax Department, as of September 22, 2025:
1. Individual registered users: 13.49 crore
2. Number of returns filed (AY 2025-26): 7.58 crore
3. Number of returns verified (AY 2025-26): 6.87 crore
4. Number of verified ITRs processed (AY 2025-26): 5.01 crore
What taxpayers can expect?
Experts say that straightforward returns should be processed within the usual timelines once verification is complete. Returns with complex filings, higher deductions, foreign assets, or multiple income sources may continue to take longer due to enhanced scrutiny and compliance checks.
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