ITR Refund Delay for AY 2025-26: Income Tax Department Reviewing Past Returns Before Issuing Refunds
The filing of Income Tax Returns (ITR) for the Assessment Year (AY) 2025-26 began at the end of May 2025. So far, over 75 lakh ITRs have been filed, with more than 71.1 lakh returns e-verified, as per the Income Tax Department’s latest updates. However, many taxpayers are still awaiting refunds, leading to rising concerns.
Interestingly, the department has stopped displaying the number of processed ITRs on its official website. Previously, this data was visible just below the count of verified returns, but now the section appears blank, adding to the uncertainty.
Why Is There a Delay in ITR Refunds This Year?
Tax experts highlight that the Income Tax Department is adopting stricter scrutiny measures this year to prevent fraudulent refund claims. The department is thoroughly reviewing taxpayers’ previous years’ returns and assessment orders before processing any new refunds.
According to renowned tax expert CA Suresh Surana, this step is part of the department’s renewed strategy to curb fake refund claims. Instructions have been issued to tax officials to withhold refunds if there are any pending assessments or unresolved scrutiny cases from past years.
While this move aims to prevent tax evasion and fraudulent activities, it may inadvertently cause inconvenience to honest taxpayers who have consistently filed accurate returns and have no pending cases.
What Do Tax Professionals Say?
Many tax professionals believe that the lack of clear communication from the department is adding to taxpayers’ frustration. A senior tax consultant emphasized the need for a transparent system where taxpayers can track the status of their refunds and understand the reasons for any delays.
“The department must ensure taxpayers are informed about the refund processing status and expected timelines. At present, there is widespread confusion due to insufficient communication,” the consultant added.
Latest Developments at a Glance
- ITR filing for AY 2025-26 started late, at the end of May 2025.
- Over 75 lakh returns filed so far.
- More than 71.1 lakh ITRs successfully e-verified.
- The department has removed processed ITR data from the official website.
- Refunds will be issued only after thorough verification of old ITRs and assessment records.
What Should Taxpayers Do?
Tax experts advise taxpayers to stay calm and patient. If you have filed your ITR correctly and there are no pending issues from previous years, your refund will be processed—although with some delay.
CA Suresana recommends regularly checking the status of your return on the Income Tax Department’s official portal. Additionally, if you have received any assessment notices or scrutiny communications from previous years, make sure to track their status and respond promptly.
Extended ITR Filing Deadline
The Income Tax Department has already extended the ITR filing deadline for AY 2025-26 to September 15, 2025, for non-audit cases. The original deadline was July 31, 2025, giving taxpayers 46 extra days to complete their filings.
Conclusion
While the delay in ITR refunds for AY 2025-26 may be frustrating, it stems from the department’s efforts to ensure compliance and prevent fraudulent refund claims. Taxpayers are advised to remain patient, regularly check their return status, and respond to any departmental notices promptly to avoid further delays.