After weeks of delays and rising complaints on social media, taxpayers are finally seeing a sharp rise in income tax refund payouts.
Over the past 24 hours, many high-value refunds have been credited, bringing relief to individuals and companies alike.
Himank Singla, Founding Partner at SBHS & Co, told “Several clients have received substantial refunds, including amounts of Rs 15–17 lakh, over the last 24 hours.”
Processing Backlog Still Exists
Despite this surge, a significant backlog remains.
According to Minister of State for Finance Pankaj Chaudhary, around 8.8 crore income tax returns were filed up to February 4, 2026.
Of these, nearly 24.64 lakh returns had remained unprocessed for more than three months.
Experts say that while many large refunds have now been issued, several high-value cases are still pending.
These will likely be cleared in the upcoming processing cycles.
Tax professionals advise taxpayers to remain patient.
Refunds are being issued in batches according to the Centralised Processing Centre (CPC) timelines.
Singla also urged everyone to ensure their bank accounts are pre-validated and linked to their PAN to avoid further delays.
Encouraging Signs for the Year
Pratibha Goyal, a chartered accountant based in New Delhi, mentioned that several of her clients, including corporate taxpayers, have received sizeable refunds since yesterday.
She described the recent pace of disbursements as “an encouraging start to the year.”
As per the law, Section 143(1) intimation must be issued within nine months from the end of the financial year in which the return is filed.
For example, returns filed in FY 2025–26, ending March 31, 2026, can be processed until September 30, 2026.
NUDGE Initiative Helps Spot Errors
Under the government’s NUDGE initiative, the Income Tax Department is using data analytics to detect discrepancies in returns.
These may include:
Undisclosed foreign income or assets
Incorrect deduction claims under Sections 80G, 80GGC, or 80E
Excess exemption claims
Incomplete or inaccurate reporting of financial information
In some cases, taxpayers may be asked to voluntarily review or update their returns before refunds are released.
Takeaway for Taxpayers
The recent uptick in refund payouts is a positive sign, but patience is still key.
Ensuring that bank details are correctly linked to PAN and keeping an eye on communications from the tax department will help smooth the process.
