Why your Income Tax Return processing and refund for AY 2025-26 may take longer

If you have filed your income tax return (ITR) for the assessment year 2025-26 (AY26) and are waiting for your refund to be processed, you might have to wait longer.

Legally, the IT department has up to nine months from the end of the financial year, in which the return has been filed, to process refunds. However, it usually takes no more than 4-5 weeks.

Why is processing and refund taking so long?

Here are some reasons why your refund credit might be delayed:

• If you haven’t e-verified your return, the process remains incomplete. If you fail to verify within 30 days of filing, your return will become invalid, and you’ll have to file all over again.

• Generally, ITR-1 gets processed faster as it’s the least complicated ITR form. Other forms, including ITR-2, ITR-3 and ITR-4, can take longer to be processed due to the added details and complexity, as per tax expert Balwant Jain.

• If you have made any errors in your ITR, like mismatched information, your ITR can take longer to be processed.

• During peak season, near the due date, ITR processing takes longer as the IT department receives too many filings. "While many people get their refunds earlier, delays can happen if there are errors in your return, mismatched details, or a heavy processing load during peak season. So, taxpayers can expect their refunds anytime within this nine-month period,” said Abhishek Soni, CEO & Co-founder, Tax2win.

• If you haven’t validated your bank account, and if the bank account details are incorrect, your refund processing will be delayed. In this case, you’ll get an email asking you to fix your bank details.

• In some cases, very small errors like an outdated mailing address or wrong account number can cause delays in the return and refund processing.

• If there is a TDS mismatch between Form 26AS and your return, the refund processing can take longer. “If there is any discrepancy between the TDS deductions shown in Form 26AS and the claim made in the ITR, it can delay the processing of the return and potentially lead to notices from the Income Tax Department," said Jain.

• If your PAN is inoperative, your refund won’t be processed until you link your PAN with your Aadhaar. You will receive a warning from the IT department in case your PAN isn’t operational.

Many people have been writing on social media platforms, sharing their frustration regarding processing delays. Some filed their ITRs as early as June and July, but still haven’t received their refunds.

Remember that while refund processing can take time, you will receive it without fail. Ensure that you’ve submitted everything correctly and let the IT department handle the rest.