• 7.3 million taxpayers awaiting refunds


• 2.97 lakh crore refund issued


• If the refund has stopped, what is the reason?

Income Tax Refund: In 2025, the wait for income tax returns for millions of taxpayers is longer than usual. Only five days remain before the last date for filing revised and late ITR for December 31, 2025-26. Thus, those who are yet to receive any update from the tax department are naturally worried. As of December 25, 2025, approximately 85.3 million income tax returns have been filed for current tax assessment years. Of these, 84.1 million returns have been verified, but only 78 million have been processed so far.

Approximately 7.3 million taxpayers’ returns have not yet been processed and are still awaiting refunds. According to government data, tax refunds worth Rs 2.97 lakh crore were issued between April 1 and December 17, 2025. This is approximately 13.5% less than the same period last year. In the November figures, the decline was approximately 18%. A thorough investigation of large amounts or doubtful and discounted claims is underway. Second, the delay in issuing ITR forms, which has delayed the entire processing cycle. Refunds for non-corporate taxpayers have been particularly affected at this time.

According to CBDT chairman Ravi Aggarwal, the department is now using advanced data analytics to identify false or dangerous claims. This includes cases like fraudulent donations, donations to unrecognized political parties, incorrect deductions or exemptions and incorrect PAN of recipients. Such returns are flagged and verified manually, which takes more time. If the refund is still not received, it may be due to errors in ITR and Form 26 AS or AIS, incorrect deduction claims, PAN or bank account verification issues or the return has been selected for in-depth verification.

CBDT clarified that it is a trust-first initiative. Those whose claims are correct need not do anything. More than 2.1 million taxpayers have paid more than Rs 2,500 crore in tax by updating their returns for previous years, while more than 1.5 million have revised their returns for 2025-26. Check your return carefully before 31st December. Make corrections if necessary, otherwise you may face an inquiry later and pay more tax.

No refund? Find out 5 reasons

• Check return status on Income Tax e-filing portal or TIN-NSDL website.


• Read emails and SMS carefully, as the department often asks for clarification.


• If required, file amended return before 31 December 2025.


• If you do not receive a response for a long time, file a complaint on the e-filing portal.


• The government’s NUDGE campaign is underway ahead of the deadline.