No refund on ITR AY 2025-26 until Income Tax Department completes investigation on your…

             Despite over 75 lakh income tax returns being filed and more than 71 lakh verified so far this year, the Income Tax Department is withholding refunds on new ITRs. Officials say no refund will be issued until taxpayers’ past returns and pending assessments are thoroughly reviewed—a move aimed at curbing fake refund claims.

The income tax returns (ITR) filing for AY 2025-26 started at the end of May this year, and so far, more than 75 lakh returns have been filed. Of these, about 71.1 lakh returns have been e-verified, according to the details shared by the I-T department on its official website. Earlier, the number of ITRs processed used to be updated regularly on the website, but now that data is no longer visible. Here’s a screengrab of the webpage where the section is now showing blank. The number of ITRs processed used to appear just below the number of ITRs verified.

Your ITR processing and tax refunds may take time this year – know why

Tax experts are of the view that the Income Tax Department will issue refunds only after it fully examines the assessment reports and old tax returns of the past years.

This year, the income tax return filing too started quite late at the end of May, almost with a month’s delay. And now ITR processing and refunds are said to be taking time.

Refunds will be given only after reviewing the old returns

According to tax professionals, when the reports surfaced in April that this year the refunds might take some extra time and not be given immediately, many people would not have taken it seriously, but now that lakhs of people have filed their ITR and most of them are awaiting refunds, questions are being raised.

This time, the tax department wants to ensure that the taxpayers did not commit any kind of fraud in the previous years, and that is why all the old ITRs and assessment orders are being reviewed again, according to them.

This step is part of the department’s new strategy so that fake refund claims can be stopped. Tax officials have also been instructed that if scrutiny of any taxpayer is pending in the previous years or the assessment has not been closed, then new refunds should be stopped.

Tax experts believe that this time, the delay in refund may cause problems to those honest taxpayers who file ITR on time every year and do not have any pending cases against them.

A senior tax consultant says, “The IT department should create a transparent and clarifying system, so that taxpayers can know why their refund is stuck and in how many days processing can be expected. At present, there is confusion due to lack of any communication.”

What is the update so far?

-The process of filing ITR started at the end of May 2025

-So far more than 75 lakh ITRs have been filed

-More than 71.1 lakh returns have been e-verified

-The data of the number of ITRs processed on the department’s website has been removed

-The tax department will issue refunds only after checking the tax records of old years.

What should taxpayers do?

Experts advise that taxpayers do not need to panic. If you have filed your ITR properly and filled all the details correctly, then you will get the refund, albeit late.

The taxpayers keep checking the processing status. Apart from this, if any assessment notice was received in the previous years, then check its status as well.

The Income Tax Department last month extended the deadline to file the income tax return for AY 2025-26 to September 15, 2025. The earlier deadline was July 31, giving taxpayers in the non-audit category 46 days of additional time to fulfil their ITR filing obligations.