Income Tax Refunds 2025: Processing Times for Salaried vs Business Taxpayers

Income Tax refunds for Assessment Year 2025–26 have experienced notable delays, leaving millions of taxpayers waiting for their payments.

With over 8 crore returns filed and nearly 92 lakh still pending, many are questioning whether salaried employees receive refunds sooner than business professionals.

Understanding the factors behind processing times helps clarify the situation.

Do Salaried Taxpayers Get Refunds Faster?

While there is a perception that salaried individuals receive refunds more quickly, the reality is more nuanced. Refund speed primarily depends on:

• Accuracy and completeness of the ITR
• Proper supporting documentation
• Early filing
• Whether the return triggers a system flag

Salaried taxpayers generally have simpler income structures, usually documented through Form 16, which reduces errors and mismatches.

Business Professionals and Refund Timelines

Business taxpayers often manage multiple income sources, deductions, and claims related to loans, capital gains, or depreciation. 

These factors can trigger additional checks, slowing refund processing. Nonetheless, well-maintained records and accurate filings can result in refunds being processed at similar speed to salaried employees.

ITR Filings Are High, But Processing Lags

The deadline for ITR submissions for AY 2025–26 ended on 16 September 2025, with approximately 7.53 crore returns filed by that date. Subsequent filings continued steadily. As of 24 November 2025:

• Total returns filed: 8.19 crore
• Returns verified: 7.88 crore
• Returns processed: 6.96 crore

This leaves roughly 92 lakh returns pending, causing delays in refunds for affected taxpayers.

Reasons Behind the Slower Refunds

As per news reports, CBDT Chairman Ravi Agrawal noted that delays are linked to the department’s careful review of refund claims, particularly those that are high-value, flagged by the system, or involve unusual or large deductions. The scrutiny ensures that refunds are processed accurately, but it can extend timelines.

Read More: Government to Issue New ITR Forms by January 2026 as CBDT Anticipates December Recovery in Tax Collections.

Conclusion

Refund processing does not inherently prioritise one group over another. The apparent advantage for salaried taxpayers arises from the relative simplicity and uniformity of their returns. Both salaried and business taxpayers can receive timely refunds if returns are accurate, disclosures are clear, and supporting documents are properly maintained.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.