ITR Processing Delays Continue: Over 24 Lakh Tax Returns Pending Beyond 90 Days

Income tax return processing delays have continued for Assessment Year 2025 to 26, with lakhs of taxpayers still awaiting updates.  

Government data presented in Parliament highlights that a significant number of returns remain unprocessed beyond 90 days, affecting refund timelines for many individuals. 

24.64 Lakh ITRs Pending Beyond 90 Days for AY 2025 to 26 

As of February 4, 2026, 8.80 crore income tax returns were filed for AY 2025 to 26. Out of these, 24,64,044 returns have been pending for processing for more than 90 days. The figures were shared by Minister of State for Finance Pankaj Chaudhary in Parliament.  

Since refunds are issued only after processing is completed, taxpayers awaiting refunds may face delays if their ITR remains under review. 

Why Processing Delays Occur 

A delay in processing does not automatically indicate an error in the return. Timelines may vary based on verification status, mismatch in income details, pending validation checks, or workload within the tax department. Returns that require additional review or clarification may take longer to be processed compared to straightforward filings. 

Read More: Income Tax Dept Proposes Raising Property Transaction Reporting Limits from April 1! 

Impact of NUDGE Campaign on Revised Filings 

The government also highlighted outcomes of the Non Intrusive Usage of Data to Guide and Enable campaign. Over the past 2 years, 1.11 crore updated or revised returns were filed. 

Additional taxes of ₹6,976.5 crore were paid, with the total revenue impact reaching ₹8,810.59 crore. Many revised filings were submitted by first time or previously non filing taxpayers after receiving departmental communication. 

How the NUDGE Initiative Works 

Under the NUDGE initiative, the tax department uses data analytics to identify discrepancies such as undisclosed foreign assets or income, incorrect deduction claims under Sections 80G, 80GGC or 80E, excess exemption claims, or incomplete financial reporting. Selected taxpayers receive communications requesting voluntary review or updates to filed returns. 

Steps Taxpayers Can Take 

Taxpayers who have filed returns for AY 2025 to 26 can check whether their return has been verified, track processing status on the income tax portal, respond to any notices promptly, and ensure correct bank account details are linked for refunds. 

Conclusion 

With 24.64 lakh returns pending beyond 90 days out of 8.80 crore filings, processing delays remain a notable issue for AY 2025 to 26. Government data also indicates increased revised filings under the NUDGE campaign, contributing to additional tax collections. 

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