Despite swift processing of returns, many Indian taxpayers are experiencing delays in income tax refunds for AY 2026-27, primarily due to verification failures, data mismatches, and processing backlog, experts reveal.
Many Indian taxpayers are still waiting for their income tax refunds for Assessment Year 2026-27, even though the Income Tax Department has processed a large number of returns quickly this year. Tax professionals say the lag usually stems from verification failures, data mismatches or bank-account problems rather than a deeper fault with the return itself.
According to tax experts quoted by NDTV, one of the biggest causes of delay is failure to complete e-verification after filing. Until a return is verified, it is not treated as fully submitted, which means the refund cannot move forward. Sanket Mishra, a personal finance expert and SEBI-registered adviser, has also urged taxpayers to pre-validate their bank account, link PAN with Aadhaar and check that their return matches the Annual Information Statement and Form 26AS.
Other common hold-ups arise when the figures in a return do not line up with tax records. LiveMint and The Times of India have reported that even small inconsistencies in salary, interest income or tax deducted at source can trigger extra checks. Taxpayers are also being warned to review bank details carefully, as an incorrect account number, IFSC code or validation status can leave a refund stuck.
Higher-value or unusual refund claims may face further scrutiny. The Economic Times has said that the tax department can subject large claims, complex filings or returns with unusual deductions to additional verification. In some cases, refunds are also reduced or delayed because the department offsets them against an older outstanding tax demand.
The scale of the backlog also matters. The Financial Express has reported that more than 27 lakh returns were still awaiting processing, a reminder that the Centralised Processing Centre is handling millions of filings at once. ClearTax has similarly noted that late filing, routine scrutiny and simple filing mistakes can all lengthen the wait, which is why experts advise taxpayers to check refund status regularly on the e-filing portal and respond quickly to any notice.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
