According to reports from The Economic Times, 27 lakh ITR refunds remain stuck this year despite verification processes being completed. This represents a significant portion of the total refund applications processed by the Income Tax Department. The backlog highlights ongoing challenges in the refund processing system that continue to affect taxpayers across the country, with the latest data showing continued delays into AY 2026-27. As reported by NDTV Profit, many taxpayers who have already filed their Income Tax Returns for AY 2026-27 are now waiting for their refunds, with refunds usually processed after the return is verified but even minor errors or incomplete formalities can delay the amount from reaching bank accounts.
As reported by Mint, taxpayers expecting income tax refunds must complete five essential checks before filing their ITR to avoid processing delays. The first requirement is ensuring the bank account is pre-validated on the income tax e-filing portal with correct account number, IFSC, and account holder's name. Taxpayers must also reconcile Form 26AS, AIS and TDS certificates with Form 16 and other income records to prevent mismatches that can delay refund processing. Additionally, PAN must be linked with Aadhaar to avoid refund-related issues, and taxpayers should check for any outstanding tax demands from earlier assessment years that could affect current refund processing under Section 245. According to NDTV Profit, refunds are credited directly to the taxpayer's pre-validated bank account, and incorrect account numbers, IFSC codes or failure to pre-validate the account can result in refund failure or delays.
According to Mint, a refund becomes due when taxes paid through TDS, advance tax or self-assessment tax exceed the taxpayer's actual tax liability. However, the Income Tax Department processes refunds only after the return is successfully verified and all required details match its records. The return must be e-verified within 30 days of filing, as until verification is completed, the return remains incomplete and refund processing does not begin. Taxpayers can complete verification through Aadhaar OTP, net banking, or a pre-validated bank account using approved methods. As reported by NDTV Profit, the Income Tax Department begins processing a return only after it has been successfully e-verified, and if this step is pending, your refund will also remain on hold.
The 27 lakh refunds represent a substantial portion of the total refund applications processed by the Income Tax Department, creating financial uncertainty for taxpayers who have completed their tax filing and are entitled to refunds. According to NDTV Profit, several factors can slow down the refund process, including mismatch in income or tax details where the department matches ITR information with Form 26AS, AIS and Taxpayer Information Summary, any mismatch in salary income, TDS, advance tax or other reported income may trigger additional checks. Outstanding tax demand from previous assessment years can reduce refund amounts or delay release after following prescribed processes. Additionally, returns selected for further scrutiny based on risk parameters or inconsistencies can delay refunds until required verification is completed. As reported by tax experts, spending a few minutes reviewing returns can often save weeks of waiting, with common resolution strategies including updating bank account details, completing e-verification, ensuring PAN and Aadhaar records are accurate, and verifying TDS and advance tax details carefully. Taxpayers can track refund status through the Income Tax Department's e-filing portal and submit reissue requests if refunds fail due to incorrect bank details.
