More than 24.6 lakh income tax returns (ITRs) remain pending for processing for over 90 days for the Assessment Year (AY) 2025–26, according to information shared by the government in Parliament. The backlog comes out of nearly 8.80 crore returns filed by taxpayers until February 4, 2026.
Minister of State for Finance Pankaj Chaudhary informed lawmakers that 24,64,044 returns are still awaiting processing, which has delayed refunds for many taxpayers.
The government clarified that delays in processing do not necessarily indicate a problem with the taxpayer’s return. Instead, they are often linked to verification checks, data-driven risk analysis, and compliance initiatives by the Income Tax Department.
One such initiative is the NUDGE (Non-Intrusive Usage of Data to Guide and Enable) campaign, which uses analytics to identify discrepancies such as incorrect deduction claims, unreported income, or incomplete disclosures. Over the past two years, the campaign has resulted in about 1.11 crore updated or revised returns and additional tax payments of roughly Rs 6,976.5 crore, with a total revenue impact of around Rs 8,810.59 crore.
Since tax refunds are issued only after returns are processed, taxpayers whose filings are still under review may experience delays in receiving their refunds. Experts advise taxpayers to check their ITR verification status, respond promptly to any notices, and ensure bank details are correctly linked to avoid further delays.
Overall, while the majority of returns are processed within the usual timeline, the large number of pending cases highlights ongoing processing and compliance-related delays in the current assessment year.
