Winning Bizness Desk

Mumbai. More than 24 lakh income tax returns have remained unprocessed for over 90 days, leaving thousands of taxpayers waiting for their refunds. Minister of State for Finance Pankaj Chaudhary informed Parliament that as of February 4, 2026, a total of 8.80 crore income tax returns had been filed for the assessment year. Of these, around 24.64 lakh returns are yet to be processed. Since refunds are issued only after processing is completed, the delay has directly impacted a large number of taxpayers across the country.

Reasons behind delay in processing

The Income Tax Department has clarified that a delay in processing does not automatically mean there is an error in the return filed. Officials said several technical and procedural reasons can hold up processing. The key reasons include:

• Return not e-verified after filing, which prevents processing from beginning
• Mismatch between declared income and data available with the department, such as AIS or Form 26AS
• Bank account not validated or other technical checks pending
• Heavy inflow of returns leading to processing backlog

Tax officials stressed that taxpayers should first check whether they have completed all required formalities before assuming any discrepancy.

Refunds linked to return processing

Refunds are generated only after the return is fully processed by the department. With over 24 lakh returns pending, the refunds linked to these filings have also been held back. This has caused concern among salaried individuals and small taxpayers who depend on timely refunds for financial planning.

If a return has already been processed but the refund has not been credited, taxpayers are advised to check the bank account validation status on the Income Tax portal. In many cases, refunds are delayed due to incomplete or unvalidated bank details.

What taxpayers should do now

Those who have filed returns for Assessment Year 2025-26 should take a few immediate steps to avoid further delay:

• Log in to the Income Tax website and check return status
• Ensure the return has been e-verified
• Respond promptly to any email or SMS from the department
• Confirm that the bank account is pre-validated

Tax experts say that proactive follow-up can significantly reduce waiting time, especially in cases where minor compliance steps remain pending.

Impact of government’s nudge campaign

The government also shared details of its ‘Nudge’ campaign in Parliament, describing it as a soft compliance initiative. Instead of initiating direct action, the department sends reminders via messages or emails encouraging taxpayers to review their returns and voluntarily correct omissions.

Over the past two years:

• 1.11 crore taxpayers updated or revised their returns
• The government collected Rs 6,976.5 crore in additional tax
• The total revenue impact of the campaign stood at around Rs 8,810.59 crore

Officials said the campaign has improved voluntary compliance and reduced the need for enforcement proceedings.

What is the nudge initiative

The Nudge campaign is designed as a behavioural approach to tax compliance. Rather than issuing strict notices at the first instance, the department nudges taxpayers to re-examine their filings if discrepancies are detected through data analytics.

By encouraging self-correction, the department aims to build trust while improving revenue collection. However, with over 24 lakh returns still pending beyond 90 days, timely processing remains crucial to restoring taxpayer confidence and ensuring that refunds reach individuals without prolonged delay.