Summary of this article
Refund delays affected nearly 75 lakh taxpayers due to mismatches and compliance checks.
AIS–ITR inconsistencies, TDS mismatches, and deduction anomalies pushed returns to manual review.
Bank-account validation errors and unanswered notices also stalled refund processing timelines.
Taxpayers should monitor portal alerts and fix discrepancies to expedite refund release.
Despite the filing season having wrapped up some time ago, a surprisingly large number of taxpayers are still waiting for their refunds for AY 2025–26. Close to 75 lakh returns have not moved forward in the system, even though most others have been cleared, according to a recent report by the Financial Express. Many people had already factored these refunds into their year-end plans, and the prolonged wait has left them uncertain about when the money will finally reach their accounts.
Why Processing Has Slowed This Year
Although the tax department has cleared most of the 8.4 crore returns filed this year, a much higher proportion than usual has been pushed into a slower, manual track. The system is flagging returns where the numbers don’t line up perfectly, whether it is a mismatch between AIS data and income declared, a tax deducted at source (TDS) figure that doesn’t correspond to Form 26AS, or deductions that appear larger than in previous years.
Once a return is flagged, it no longer moves through the automated pipeline. It sits in a queue until an assessing officer completes a verification. That naturally drags out timelines. Adding to that, the typical last-minute surge played a role; despite generous extensions, a flood of returns came in right at the deadline, creating a bulge the system is still working through.
1 December 2025
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What Typically Causes Refunds To Get Stuck
Across tax practitioners and user forums, a few recurring issues have emerged:
Returns with inflated or unusual deductions under sections like 80C, 80D, or 80G
Bank accounts that haven’t been pre-validated or have minor spelling or IFSC errors
Small inconsistencies between reported income and departmental data sources
Pending responses to notices where the department has asked for clarification
Many of these issues are minor, but even a small discrepancy can pause the entire refund cycle.
What Taxpayers Should Do
If your refund hasn’t come through yet, start by checking your bank account status on the tax portal. A large number of delays this year are due to validation failures. It’s also worth reviewing whether the department has sent any communication; notices often go unnoticed in the e-filing inbox, and refunds remain frozen until a reply is submitted.
Refunds for clean, discrepancy-free returns are still being released in batches. However, taxpayers whose filings have been pulled into scrutiny may need to brace for a longer wait as the department appears to be prioritising accuracy and verification over speed this year.
