ITR Refund Backlog Persists With 53 Lakh AY 2025–26 Returns Still Unprocessed

Overview

• Income-tax data show 8.8 crore returns filed for AY 2025–26, 8.68 crore verified and 8.15 crore processed, leaving nearly 53 lakh pending as of January 11.
• Tax experts cite intensified risk-based reviews, with high or unusual refund claims and AIS/Form 26AS mismatches triggering automated flags and manual scrutiny.
• The latest phase of the CBDT’s Nudge initiative uses AEOI data to spot possible non-disclosure of foreign assets or income, with SMS and email alerts issued since November 28, 2025.
• Refunds are also held up by unverified ITRs, incorrect or unvalidated bank accounts, adjustments against earlier tax demands, and defective returns due to data mismatches.
• By law, returns for FY 2024–25 can be processed through December 31, 2026, and eligible delays carry 6% annual interest under Section 244A, so taxpayers should track portal status and respond promptly to Section 143(1) intimations.