Many taxpayers are facing a frustrating wait for their tax refunds as nearly 24 lakh income tax returns (ITRs) for the Assessment Year 2025–26 have been pending for more than 90 days. According to the Minister of State for Finance, Pankaj Chaudhary, as of February 4, 2026, out of 8.79 crore ITRs filed, approximately 24.64 lakh were yet to be processed, leaving millions of individuals waiting for their refunds.

The large backlog has triggered concerns, especially for senior citizens and others who rely on timely refunds. However, the government clarified that the delay is due to technology-driven risk analysis and compliance campaigns conducted by the Income Tax Department, not a blanket action against taxpayers.

The Finance Ministry explained that the department is using advanced data tools to detect possible mismatches or risky claims before clearing returns. While this extra scrutiny ensures better compliance, it has slowed down processing in some cases.

One major reason for delays stems from the NUDGE campaign initiated by the Central Board of Direct Taxes (CBDT), which encourages voluntary compliance by flagging potentially irregular returns. Through the campaign, selected taxpayers were sent messages asking them to revise their returns due to issues like unreported foreign assets, incorrect deductions, or excess claims under sections like 80G, 80GGC, and 80E.

If your ITR for AY 2025–26 is still pending, ensure that it has been properly verified, check the processing status on the income tax portal, and respond promptly to any notices from the department. Also, verify that your bank account details are correctly linked to ensure smooth refund processing. While the government aims to improve compliance through these checks, the wait for refunds is putting many taxpayers’ patience to the test.