63 Lakh ITR Refunds Delayed: Why Your Income Tax Refund Is Stuck

• Approximately 63 lakh Income Tax Returns (ITRs) for Assessment Year 2025-26 remain unprocessed, leading to refund delays for many taxpayers.
• Delays are attributed to strict scrutiny, data mismatches with third-party information (TDS, AIS, Form 26AS), and the CBDT's 'nudge' campaign.
• Backend changes, including late release of ITR forms and portal traffic issues, also contributed to processing slowdowns this year.
• The Income Tax Department legally has until December 31, 2026, to process AY 2025-26 returns, so current delays are within the legal framework.
• Taxpayers may receive 0.5% monthly interest on delayed refunds under Section 244A, provided certain conditions are met.

Why It Matters: Income Tax refunds are delayed for 63 lakh ITRs due to scrutiny and data mismatches; check status and respond to department.