Archive · 7 Jan 2026
Tax Refund Delays for AY 2025-26
Many people are waiting for their income tax refunds for the year 2025-26.
As of early January 2026, around 61 lakh tax returns are still not processed.
The tax department has time until the end of 2026 to process these returns.
Delays happen because the department is checking for mistakes and verifying information.
Some people might get extra money as interest if their refund is late, but only if the refund is big enough.
Experts say that while the wait is long, it is allowed by law.
People should make sure their tax information is correct and respond to any notices to help speed up the process.
Around 61 lakh income tax returns for AY 2025-26 are still unprocessed as of January 6, 2026.
The Income Tax Department has time until December 31, 2026, to process these returns.
Delays are caused by data mismatches, enhanced verification, high-value case scrutiny, delayed ITR form release, structural changes, NUDGE campaigns, and taxpayer-related errors.
Interest at 0.5% per month is payable on delayed refunds if the refund amount is at least 10% of the total tax paid.
Taxpayers are advised to ensure their returns are e-verified, bank account details are validated, and any pending communication is responded to promptly.
- Who
- Taxpayers waiting for income tax refunds for AY 2025-26
- What
- Delays in processing income tax returns and refunds
- When
- As of January 6, 2026, with a deadline for processing by December 31, 2026
- Where
- India
- Why
- Due to data mismatches, enhanced verification, high-value case scrutiny, delayed ITR form release, structural changes, NUDGE campaigns, and taxpayer-related errors
- Unprocessed Returns
- 61 lakh
- Deadline for Processing
- December 31, 2026
- Interest Rate on Delayed Refunds
- 0.5% per month
- Total ITRs Processed
- 7.80 crore
- Interest Payment Condition
- Refund amount must be at least 10% of total tax paid