ITR processing for the 2025-26 Assessment Year is slower due to enhanced, AI-driven scrutiny of data mismatches, a massive surge in filings, and a proactive "nudge" campaign by the tax department to correct discrepancies in deductions. Over 60 lakh returns were pending in early 2026, with higher-value refunds, especially those over ₹30,000, being held for stricter, manual, or automated, in-depth verification to prevent tax evasion.
Heightened scrutiny, data mismatches and stricter checks are slowing ITR processing.
Common reasons for a tax refund delay include if: You claimed tax credits like the Earned Income Tax Credit (EITC) or Additional Child Tax Credit and it is before mid-February. The IRS does not begin releasing refunds with these credits until mid-February. Your return is incorrect or incomplete.
If you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from the date IRS receives your return. If you file your return electronically, your refund should be issued in less than three weeks, even faster when you choose direct deposit.
Errors in your tax return calculations can cause delays as the IRS may need to correct them. A mismatch between your Social Security Number and the records can significantly delay your refund. Filing your tax return too early or too late can lead to delays due to IRS system updates or high processing volumes.
There's no strict maximum limit for how long the IRS can hold a refund, but they must pay interest after 45 days; while most e-filed returns take 21 days, returns needing extra review for errors, fraud, or certain credits (like EITC/ACTC) can take months (45-180+ days), and amended returns can take 8-16 weeks, with unfiled returns having an indefinite delay until filed.
However, in most cases, ITR is processed after 7-30 days of e-verification. If processing takes more time, there may be a reason for checking arithmetic accuracy, incorrect claims, or comparing with other relevant financial data.
Usually, it takes 4-5 weeks for the refund to be credited to the account of the taxpayer. However, if refund is not received during this duration, the taxpayer must check for intimation regarding discrepancies in ITR; check email for any notification from the IT department regarding the refund.
The IRS has no maximum time limit when it comes to processing tax refunds, but after 45 days, it is required to pay interest on your refund. In most cases, you can expect the IRS to issue your tax refund within 21 days of filing your tax return.
Some returns take longer.
Is incomplete. Needs further review in general. Is affected by identity theft or fraud. Includes a claim filed for an Earned Income Tax Credit or an Additional Child Tax Credit.
After receiving the intimation if you have any refund, refund will directly deposit to your bank account or you will receive a Cheque. The tax refund status can be checked at NSDL Portal or EZTax.in Self Service Portal. or by logging in to ITD Site. Do you know?
Many are wondering if the Income Tax Department delays processing refunds if the refund amount is large, such as over Rs 50,000. According to income tax rules, there is no upper limit on refunds. Whether your refund is Rs 10,000 or Rs 1 lakh or even greater, it will be credited the same way.
The IRS allows you to amend returns from the last three years, which sometimes results in delayed or unexpected refund checks. While a few taxpayers are genuinely seeing deposits of $2,000 or $3,000, those refunds are tied to specific past errors or missed credits, not a general program available now.
Things that can delay a refund:
The return has errors, is incomplete or is affected by identity theft or fraud. The return needs a correction to the child tax credit or recovery rebate credit amount.
Processing your refund usually takes: Up to 21 days for an e-filed return. 6 weeks or more for returns sent by mail. Longer if your return needs corrections or extra review.
ITR refund delays in FY 2024-25 - have become common due to tighter verification, system red flags and processing bottlenecks at the tax department's Centralized Processing Centre (CPC), especially in high value or deduction heavy cases.
You may call us toll-free at 800-829-1040, M - F, 7 a.m. - 7 p.m.
Being processed is better than still being processed. Does not necessarily mean there's red flags on the account or that you need to verify, it's just a general message stating that IRS is still working on things.