Income Tax Refund: After submitting their income tax return, every taxpayer is curious about when their refund will be issued. Recent government statistics on refunds have shown that the delay in income tax refunds for FY 2025-26 has once again sparked conversations. Many individuals are still awaiting their funds even months after they filed their returns. As of March 24, 2026, government data indicates that a total of 88,920,822 returns have been submitted, with 87,786,233 of those returns verified. Out of these, 85,059,270 returns have been processed. This indicates that over 2.7 million returns are still outstanding, causing delays in refunds.
What is causing the refund delays?
Experts suggest that the delays are now attributed not only to office operations but also to system and data- challenges. Dinkar Sharma reported for Financial Express that millions of individuals are still waiting for their tax refunds because numerous returns remain unprocessed.
Key factors contributing to refund delays
Data mismatch – If the details in the ITR, AIS, and Form 26AS do not align, an investigation is triggered, and the refund may be halted.
E-verification pending – Returns that have not undergone e-verification are not processed.
Last-minute filing surge – A significant number of people file their returns close to the deadline, which puts additional strain on the system and slows down processing.
Complex or heavily scrutinized cases – Returns with multiple income sources, capital gains, or substantial refunds face more scrutiny, which requires additional time.
Incorrect bank information – If the bank account details are incorrect, unverified, or not linked to the PAN, the refund may be delayed.
When will the new Income Tax Act come into effect?
The new Income Tax Act, 2025, will take effect on April 1, 2026. It will replace a six-decade-old law. The law simplifies tax rules, reduces litigation, implements a single tax year system, and eases compliance by revamping return forms. The FAQs state that the 1961 Act will be repealed on April 1, 2026. However, its provisions will remain applicable to all tax years beginning before April 1, 2026.
How will old cases be resolved?
It said, “The Income Tax Department’s e-filing portal will facilitate simultaneous compliance under both the old and new Acts. All assessments, appeals and other proceedings relating to previous years will be conducted under the old Act till their final decision.” According to the FAQ, the government is implementing necessary measures to ensure that both legislative frameworks work smoothly and in unison on the Income Tax portal. The Income Tax Act, 2025, simplifies the tax timeline by eliminating the distinction between assessment year and previous year and replacing it with a single ‘tax year’ framework. This allows taxpayers to claim TDS refund even if they file their income tax returns after the deadline, without any penalty.
