ITR AY 2025-26 Refund Delay: Why Taxpayers Are Not Receiving Refunds Yet

As the income tax filing season progresses, a growing number of taxpayers are expressing concern about delayed refunds. Despite over 75 lakh returns being filed and more than 71 lakh already e-verified for the Assessment Year 2025-26, the Income Tax Department has held back refunds for most new filings. The primary reason behind this ITR AY 2025-26 refund delay is the department’s intensified scrutiny of previous years’ filings.

Let’s understand what’s causing this delay, how it affects taxpayers, and what steps you can take.

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ITR AY 2025-26 Refund Delay: What the Tax Department Has Stated

According to the Income Tax Department, no refunds will be issued for ITR AY 2025-26 until a thorough review of past income tax returns and pending assessments is complete. This move is aimed at curbing fraudulent refund claims, which have reportedly increased in recent years. Officials state that the department is using advanced analytics to cross-verify returns and detect any irregularities before releasing refunds.

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ITR AY 2025-26 Refund Delay: Filing and Verification Stats So Far

The ITR AY 2025-26 refund delay comes at a time when taxpayers have shown high compliance. As of early July 2025:

• Over 75 lakh ITRs have been filed,
• 71.1 lakh of these have been successfully e-verified.

Earlier, the Income Tax Department provided real-time updates on how many ITRs had been processed, but that section has now been removed from the official website—adding to the uncertainty.

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Why Is the ITR AY 2025-26 Refund Delay Happening?

Tax experts suggest that the department’s new refund strategy is part of a broader crackdown on fake refund claims. This involves:

• Scrutinizing pending assessments from earlier financial years,
• Re-checking older ITRs for discrepancies,
• Delaying refunds until previous scrutiny notices are cleared.

CA Suresh Surana noted that instructions have been passed to halt all new refunds if the taxpayer has any pending assessments from earlier years.

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Impact of ITR AY 2025-26 Refund Delay on Honest Taxpayers

While the initiative is aimed at eliminating fraud, the ITR AY 2025-26 refund delay is also affecting genuine, honest taxpayers. Those who consistently file timely and accurate returns are left waiting, with little to no communication on refund timelines.

A senior tax consultant emphasized the need for a transparent system that allows taxpayers to check the reason for delay and the expected timeline for refund processing.

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What Should You Do Amid ITR AY 2025-26 Refund Delay?

If your refund has not been processed yet, don’t panic. Experts recommend the following:

1. Keep tracking the ITR processing status on the income tax e-filing portal.
2. Check past assessment notices and ensure no older scrutiny issues are pending.
3. Avoid re-filing or making duplicate claims, as it can complicate your case.

Also, make sure you’ve e-verified your return. Refund processing won’t begin unless e-verification is completed.

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Deadline Extended for ITR AY 2025-26 Filing

In response to the delayed start of the filing season this year, the Income Tax Department has extended the ITR deadline for AY 2025-26:

• New deadline: September 15, 2025
• Earlier deadline: July 31, 2025

This extension gives non-audit category taxpayers 46 extra days to meet their filing obligations.

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ITR Filing Without Portal Password: Use Net Banking

If you’ve forgotten your income tax portal password, you can still file your ITR easily using your net banking credentials. Most major banks in India offer a direct login to the e-filing portal through their online banking platform.

Steps to File ITR via Net Banking:

• Log in to your bank’s net banking portal.
• Navigate to the Income Tax e-Filing section.
• You’ll be redirected to the e-filing portal without needing a password.

Services you can access include:

• Uploading your ITR,
• Viewing Form 26AS,
• Checking refund status,
• Calculating tax and paying dues.

Banks like ICICI, HDFC, SBI, and Axis offer detailed step-by-step guides for this process.

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Key Highlights of ITR AY 2025-26 So Far

• Income Tax Return filing began late this year, starting in the last week of May 2025.
• More than 75 lakh returns have been filed within weeks.
• Over 71 lakh taxpayers have completed e-verification.
• The processing data has been removed from the income tax website.
• Refunds are being withheld until old tax records are verified thoroughly.

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Tax Experts Demand Clearer Communication

Many experts argue that the ITR AY 2025-26 refund delay is understandable from a compliance standpoint but say it should be handled with better communication. A system that transparently communicates refund status and delay reasons could reduce taxpayer frustration.

An expert summed it up, “The department must bridge the information gap. Otherwise, even compliant taxpayers may lose trust in the system.”

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Conclusion: Stay Calm and Be Informed

The ITR AY 2025-26 refund delay is part of the Income Tax Department’s strategy to strengthen compliance and eliminate fraudulent refunds. While it may be frustrating for genuine taxpayers, maintaining patience and monitoring your status regularly is the best course of action.

If you’ve filed correctly, completed e-verification, and have no pending assessments, your refund will come—albeit later than usual.

Stay tuned to updates from the Income Tax Department and continue to check your refund status through the official e-filing portal or your bank’s net banking interface.

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