Income Tax Department Grapples with 9.7 Million ITR Backlog, Taxpayers Await Refunds

The Income Tax (I-T) Department is facing a significant backlog of over 9.7 million verified income tax returns (ITRs) for the Assessment Year (AY) 2025-26, according to the latest official figures. As of Sunday, November 2, 2025, while the department has successfully processed a substantial 6.72 crore (67.2 million) ITRs, a staggering 97,07,702 verified returns remain in the queue, causing anxiety among taxpayers, especially those expecting refunds.

The data, sourced directly from the Income Tax Department’s official portal and reflected in a screenshot from November 2, reveals the scale of the task. The department has received 8,01,81,924 filed returns, of which 7,69,31,814 have been verified by taxpayers. The gap between verified and processed returns constitutes the current backlog.

(Screenshot of the Income Tax Department portal showing ITR statistics as on November 2, 2025)

This delay is particularly troubling for individuals who filed their returns around the July 31 deadline, nearly four months ago. Many have been waiting patiently for tax refunds, including refunds for Tax Deducted at Source (TDS).

“For salaried employees and senior citizens, a tax refund is often a crucial part of their financial planning. A delay of four to five months creates unnecessary hardship and cash flow problems. The department has made the filing process seamless, but the processing speed needs to match that efficiency,” said a Atul Goel, a Delhi-based chartered accountant.

Understanding the ITR Process and Deadlines

The Income Tax Return (ITR) is a form through which taxpayers declare their income, deductions, and tax liabilities for a financial year. For the Financial Year 2024-25 (AY 2025-26), the deadline for most individual taxpayers was July 31, 2025. After filing, a crucial step is ‘Verification’, which can be done electronically via Aadhaar OTP or by sending a signed physical copy (ITR-V) to the Central Processing Centre in Bengaluru. The return is not considered valid until it is verified.

Once verified, the I-T department processes the return, checks for discrepancies, and calculates the final tax liability or refund amount. While the department aims to process refunds within a few weeks, high volumes can lead to delays.

Officials have indicated that the backlog is being addressed on a priority basis, with a focus on returns that are due for refunds. The department has been leveraging technology and automated processes to expedite clearances. However, with the number of registered users on the e-filing portal now exceeding 13.54 crore, the system remains under constant pressure. Taxpayers are advised to ensure their returns are verified and to check their e-filing account regularly for any updates or notifications from the department. (http://www.incometax.gov.in/iec/foportal/)

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