Delays in processing Income Tax Refunds for Assessment Year (AY) 2025-26 are primarily due to stricter verification protocols, data mismatches, and specific issues with individual returns. The Income Tax Department is conducting more rigorous scrutiny, and in some cases, refunds are withheld until the investigation or pending issues are resolved.
Common Reasons for AY 2025-26 Refund Delays
Increased Scrutiny: The IT department is conducting more detailed reviews and automated flagging of ITRs to ensure data accuracy and compliance, which slows down the overall processing time. Refunds in such cases are not processed until internal checks are complete.
Data Mismatches: Discrepancies between the information provided in your ITR and data available in Form 26AS, Annual Information Statement (AIS), or Taxpayer Information Summary (TIS) can trigger a delay and scrutiny.
Pending e-Verification: The ITR filing process is incomplete until the return is e-verified. No refund will be processed until this step is finalized.
Filing Close to the Due Date: Returns filed near the due date (September 16, 2025, for non-audit cases) experience delays due to the high volume of filings received by the department during that period.
Incorrect Bank Details: Errors in the provided bank account number or IFSC code can prevent the refund from being credited, even after processing.