ITR Processing Backlog: Why Lakhs of Taxpayers Are Still Waiting for Refund

If you have not received your income tax return, you are not the only one. The government has told parliament that around 24 lakh returns have been pending for processing for more than 3 months.

Minister of State for Finance, Pankaj Chaudhary, said in the Rajya Sabha that around 8.79 crore ITRs were filed up to February 4, 2026. Out of these, 24.64 lakh returns have not been processed for more than 90 days.

Because of this large backlog, many taxpayers are still waiting for their returns to be processed. In many cases, their refunds are also delayed.

However, Pankaj Chaudhary clarifies that the delay is mainly due to technology-driven risk analysis and compliance campaigns run by the Income Tax Department. It stressed that this is not a general crackdown on honest taxpayers.

The minister explained that the delay is mainly due to technology-based risk checks and compliance drives by the Income Tax Department. He clarified that this is not a general action against honest taxpayers.

According to him, the department is using advanced data tools to find mismatches or suspicious claims before approving returns. This extra checking is causing delays in some cases.

Questions Raised by Members of Parliament

Rajya Sabha MP Deepak Prakash raised concerns about the issue. He asked whether the department had sent many messages in late December 2025 asking taxpayers to revise their returns within 3 to 4 days.

He further asked why refunds of genuine taxpayers, especially senior citizens, were being held back without clearly explaining the issue in their returns. He further asked for details on how many returns were pending as of January 31, 2026.

Pankaj Chaudhary explained that these messages were sent as part of the NUDGE campaign by the Central Board of Direct Taxes (CBDT). NUDGE means Non-intrusive Usage of Data to Guide and Enable.

This campaign uses data analysis and digital messages to gently encourage taxpayers to follow tax rules correctly, instead of taking strict action later. If the system finds possible issues in someone’s tax return, it asks them to check and correct it voluntarily.

The government said that people selected under the NUDGE campaign were identified using advanced risk analysis, which found possible mistakes. Most of the issues were related to not reporting foreign assets or income, claiming wrong or extra deductions, and incorrect claims under sections like 80G, 80GGC, and 80E. The minister added that most cases involved hidden foreign assets or incorrect deduction claims.

A Long Wait for Many Taxpayers

For now, many taxpayers might have to wait a bit longer while the department finishes reviewing their details. Making sure your documents are complete and replying quickly to any messages can help move things along.

The government says these checks are to ensure everyone follows the rules. However, for people expecting refunds, the delay can be frustrating and requires extra patience.