Why your Income Tax Refund is delayed for assessment year 2025–26 ?

If your income tax refund has not been credited yet, you are not alone. The government has informed Parliament that nearly 24 lakh Income Tax Returns (ITRs) for Assessment Year (AY) 2025–26 have remained pending for processing for more than 90 days.

In a written reply in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said that of the 8.79 crore ITRs filed up to February 4, 2026, around 24.64 lakh returns were pending beyond the 90-day mark.

The large backlog means lakhs of taxpayers are still awaiting ITR processing, with many income tax refunds yet to be issued.

Why are income tax refunds delayed?

The Finance Ministry attributed the delay to technology-driven risk analysis and targeted compliance campaigns undertaken by the Income Tax Department. It clarified that the exercise is not a blanket crackdown on honest taxpayers.

According to the ministry, advanced data analytics tools are being used to detect mismatches, high-risk claims and discrepancies before clearing returns. This additional scrutiny has slowed processing in selected cases.

Parliament query: What MPs asked

The issue was raised by Rajya Sabha MP Deepak Prakash, who sought clarification on reports that the department had sent large-scale messages in December 2025 asking taxpayers to revise their returns within three to four days.

He also questioned why refunds of compliant taxpayers — particularly senior citizens — were being withheld without clear explanations. Further, he asked for data on ITRs pending beyond 90 days as of January 31, 2026.

What is the NUDGE campaign?

Responding to the queries, Chaudhary said the messages were part of the NUDGE campaign launched by the Central Board of Direct Taxes (CBDT).

NUDGE stands for 'Non-intrusive Usage of Data to Guide and Enable'. The initiative uses digital communication and data analytics to encourage voluntary compliance rather than pursuing enforcement action later.

Under this system, selected taxpayers receive alerts to review or revise their filed returns if the system flags potential risks.

Who has been flagged for scrutiny?

The government said taxpayers selected under the NUDGE campaign were identified through advanced risk assessment models.

Common triggers included:

• Non-disclosure of foreign assets or overseas income
• Incorrect or excess deduction claims
• Improper claims under Sections 80G, 80GGC and 80E
• Inaccurate reporting of income

The minister indicated that most flagged cases related to unreported foreign holdings or overstated deduction claims.

What to do if your ITR is still pending

If your ITR for AY 2025–26 remains under processing, experts suggest taking the following steps to avoid further delay:

Ensure your return has been properly verified (e-verification or physical verification, if applicable)

Regularly check the ITR status on the income tax e-filing portal

Respond promptly to any notices or communications from the department

Confirm that your bank account details are correctly pre-validated and linked for refund credit

Refund wait continues for many taxpayers

For now, taxpayers awaiting refunds may have to wait as the department completes its compliance checks. While the government maintains that enhanced scrutiny improves tax compliance and transparency, delays in income tax refund processing continue to test the patience of affected individuals.

With over 24 lakh returns pending beyond 90 days, timely verification and prompt response to departmental communication could help speed up resolution in many cases.