Tax: 73 lakh taxpayers are waiting for refunds; the government has issued a NUDGE alert..

For millions of taxpayers, the wait for income tax refunds has been longer than usual this year. With only six days left before December 31st, the deadline for filing revised and late ITRs for Assessment Year 2025-26, those who haven't yet received any update from the tax department are naturally growing concerned.

Why the Numbers Are Causing Concern
As of December 25, 2025, approximately 8.53 crore income tax returns (ITRs) have been filed in the current assessment year. Of these, 8.41 crore returns have been verified, but only 7.80 crore have been processed so far. This means that nearly 73 lakh taxpayers are still waiting for their returns to be processed and for their refunds (if applicable).

Why Are Refunds Delayed This Year?
According to government data, tax refunds worth ₹2.97 lakh crore were issued between April 1 and December 17, 2025. This is about 13.5% less than the same period last year. The decline was even steeper, around 18%, in the data up to November.

According to the Tax Department, there are two main reasons for the delay:
First, the intensive scrutiny of large amounts of suspicious deduction and exemption claims. Second, the late release of ITR forms has pushed back the entire processing cycle. Refunds for non-corporate taxpayers, in particular, have been more significantly affected this time.

What is the Tax Department Investigating?
According to CBDT Chairman Ravi Agarwal, the department is now using advanced data analytics to identify incorrect or risky claims. This includes cases of fraudulent donations, contributions to unrecognized political parties, incorrect deductions or exemptions, and incorrect PAN details of donation recipients. Such returns are flagged and subjected to manual scrutiny, which takes more time. Why Your Refund Might Be Delayed
If your refund hasn't arrived yet, the reasons could include discrepancies between your ITR and Form 26AS or AIS, incorrect deduction claims, issues with PAN or bank account verification, or your return being selected for in-depth verification.

What You Should Do Now
With December 31st approaching, instead of waiting, take these steps:
Check your refund status on the Income Tax e-filing portal or the TIN-NSDL website.
Carefully read emails and SMS messages; the department often requests clarification.
If necessary, file a revised return before December 31, 2025.
If you don't receive a response for a long time, file a grievance on the e-filing portal.
Contact the helpline numbers 1800-103-0025 or 1800-419-0025.

Government's NUDGE Campaign Before the Deadline
To reduce disputes and delays, the CBDT has launched the NUDGE campaign, allowing taxpayers to correct incorrect claims themselves. The CBDT states that some taxpayers have claimed exemptions and deductions they were not entitled to.

Trust-Based Initiative
The CBDT has clarified that this is a trust-first initiative. Those whose claims are correct do not need to do anything. Data shows that over 21 lakh taxpayers have updated their returns for previous years and paid over ₹2,500 crore in taxes, while over 15 lakh returns for AY 2025-26 have already been revised. The department's advice is clear: carefully review your return before December 31st, make corrections if needed, otherwise, you may face inquiries and higher taxes later.

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