Millions of Indian taxpayers awaiting income tax refunds face an extended wait, as the Income Tax Department struggles to clear a massive backlog of over 97 lakh verified returns. Latest official statistics from the I-T Department’s portal reveal that despite processing a record 6.72 crore Income Tax Returns (ITRs) for Assessment Year (AY) 2025-26, a significant pile-up remains.
As of November 2, 2025, the total number of ITRs verified by taxpayers stood at 7.69 crore. This leaves a gap of 97,07,702 returns that are verified but not yet processed, creating a bottleneck that directly impacts refunds.
(Screenshot from the Income Tax Department portal dated November 2, 2025, displaying the latest ITR filing and processing statistics)
The delay is causing financial strain and frustration for individuals who diligently filed and verified their returns by the July 31, 2025, deadline. Many have been waiting for over three months for their refunds, which include amounts from excess Tax Deducted at Source (TDS).
“The e-filing system is efficient, but the processing delay defeats its purpose for refund seekers. For many, especially salaried individuals and small business owners, these refunds are not windfalls but their own money, crucial for managing household budgets or reinvesting in their work,” said Raju Sharma, a Dibrugarh-based financial consultant on Monday.
The ITR Journey: From Filing to Refund
The tax filing process involves submitting the ITR form, followed by a mandatory verification—either electronically via Aadhaar OTP or by posting a physical copy. The return is only considered complete once verified. The I-T Department then processes this verified return, scrutinising the claims before issuing an intimation notice and processing any refunds.
While the department has made strides in automation, the sheer volume of returns continues to pose a challenge. The e-filing portal now boasts over 13.54 crore registered users, and for AY 2025-26, a total of 8.01 crore returns were filed, indicating widespread compliance.
Officials from the Central Processing Centre (CPC) in Bengaluru have assured that clearing the refund backlog is a top priority. “We are running dedicated drives to process returns eligible for refunds on a fast-track basis. Taxpayers are urged to ensure there are no errors in their bank account details or mismatches in their Form 26AS to avoid further delays,” an official stated, requesting anonymity.
Taxpayers can check the real-time status of their returns and the latest departmental statistics on the official Income Tax e-Filing portal.(http://www.incometax.gov.in/iec/foportal/)
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