The issue of tax refunds delay has once again come under the spotlight after the government disclosed in Parliament that nearly 24 lakh income tax returns (ITRs) are pending for processing for more than 90 days. These delays relate to Assessment Year (AY) 2025-26 and have caused significant anxiety among taxpayers, particularly senior citizens who depend on timely refunds for liquidity.
According to the Finance Ministry, the delay in income tax refunds is not due to system inefficiency or blanket action against honest taxpayers, but because of technology-driven risk analysis and compliance nudging initiatives run by the Income Tax Department.
What Was Raised in Parliament About Tax Refunds Delay
The issue was raised in the Rajya Sabha by MP Deepak Prakash, who questioned the government about mass messages sent to taxpayers in December 2025 asking them to revise their returns within a short timeframe. He also sought clarity on why refunds were being withheld without clearly communicating discrepancies, especially for senior citizens.
Responding to the query, the government acknowledged the tax refunds delay and confirmed that a substantial number of ITRs remain unprocessed beyond the standard timeline.
Why Taxpayers Received ‘Revise Your Return’ Messages
The Finance Ministry explained that the messages were part of the NUDGE (Non-intrusive Usage of Data to Guide and Enable) compliance campaign launched by the Central Board of Direct Taxes (CBDT).
These campaigns rely on advanced data analytics, behavioural insights, and digital tools to identify potential mismatches or risks in filed returns. Instead of initiating enforcement actions, the department nudges taxpayers to voluntarily review or revise their ITRs, which can temporarily slow down refund processing.
Who Was Selected Under the NUDGE Campaign
Not all taxpayers were impacted by the tax refunds delay. According to the government, only select cases flagged through risk analysis were included. These mainly involved:
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Non-disclosure of foreign income or foreign assets
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Incorrect or excess deduction claims
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Wrong claims under sections like 80G, 80GGC, and 80E
Taxpayers falling under these categories were asked to recheck or update their returns before refunds could be processed.
SAKSHAM Framework Behind Income Tax Refund Processing
The NUDGE campaign operates through a structured framework called SAKSHAM, designed to improve compliance while protecting taxpayer rights. It includes data collection, analysis, targeted communication, facilitation, and continuous monitoring.
The government emphasised that this approach is non-intrusive, aiming to build trust and encourage voluntary compliance rather than penalising taxpayers upfront.
Impact of NUDGE Campaign on Tax Refunds Delay
The Finance Ministry shared data highlighting the scale and financial impact of the initiative over the past two years:
Over 1.11 crore updated or revised ITRs have been filed. Additional tax collections exceeded ₹6,976 crore, while refund claims were reduced by over ₹1,800 crore in December 2025 alone. The total revenue impact crossed ₹8,800 crore.
While these numbers reflect improved compliance, they also explain why the tax refunds delay has affected lakhs of taxpayers.
Nearly 24.6 Lakh ITRs Pending Beyond 90 Days
As of 4 February 2026, out of 8.79 crore ITRs filed for AY 2025-26, 24,64,044 returns were pending for processing beyond 90 days. This confirms that income tax refund delays are far more widespread than initially assumed.
No Special Relief for Senior Citizens Yet
Despite growing concerns, the government clarified that no special or time-bound measures are currently planned to fast-track refunds for senior citizens or other vulnerable groups. This announcement has further intensified calls for administrative reforms in refund processing.
What Taxpayers Can Do If Their Refund Is Delayed
If your tax refund is delayed, ensure your ITR is accurate, verify notices in the e-filing portal, respond promptly to any communication, and track your income tax refund status regularly. Professional assistance can help resolve mismatches quickly and avoid prolonged delays.
The ongoing tax refunds delay highlights the growing role of technology in tax administration. While compliance-driven initiatives like NUDGE have improved revenue collection, they have also slowed down refund timelines for many honest taxpayers. Until processing speeds improve, proactive compliance and expert guidance remain the best safeguards.
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