27 Lakh Returns Still Pending Beyond 90 Days. Here Is How to Get Yours Unstuck.
You filed your ITR, e-verified within minutes, and expected a refund in 2-4 weeks. It has been 3 months. Your status says “processing.” The CPC helpline puts you on hold for 45 minutes. Your CA says “wait.”
This is not a rare experience. As of February 2026, over 24.64 lakh income tax returns from AY 2025-26 were pending processing beyond 90 days. Another 27 lakh+ verified returns sat in the queue with no clear timeline. The department’s AI-driven risk management system, expanded AIS data matching, and high-value claim audits have created a bottleneck that affects millions of taxpayers every year.
If you are waiting for a refund from AY 2026-27 (FY 2025-26, filed by July 31, 2026), this guide gives you the exact escalation path — with timelines, template text, and the specific steps that CAs report actually work.
If you have not filed yet, read the ITR filing guide with form selection and AIS verification first. Prevention is always cheaper than escalation.
How the Refund Pipeline Actually Works
Understanding the pipeline explains why your refund is stuck and where to intervene.
Stage 1: Filing and Verification (Day 0-30)
You file the return and e-verify within 30 days. If you miss the 30-day e-verification window, your return is treated as never filed — no processing, no refund, a Rs 5,000 penalty. This is the most common reason for “stuck” returns that are not actually stuck — they were never valid.
Check: Go to e-File → Income Tax Returns → View Filed Returns. If status shows “Submitted and Pending Verification,” your return was never verified. E-verify immediately using Aadhaar OTP.
Stage 2: CPC Queue (Day 1-60 After Verification)
Your verified return enters the Centralized Processing Centre (CPC) Bangalore queue. CPC processes returns roughly in filing order within priority batches:
| Filing Window | Typical Queue Position | Processing Time |
|---|---|---|
| April-May filers | Front of queue | 15-20 days |
| June filers | Early queue | 20-40 days |
| July 1-20 filers | Mid queue | 30-60 days |
| July 21-31 filers | Back of queue (3-4 crore returns) | 60-120 days |
| Belated filers (August-December) | Lowest priority | 90-180 days |
Returns with zero refund or tax payable are deprioritized — the CPC processes refund claims first.
Stage 3: Automated Matching (During Processing)
The CPC auto-processor under Section 143(1) runs your ITR against:
- AIS data: All 46+ categories of reported financial transactions
- Form 26AS: TDS credits claimed vs TDS actually deposited by deductors
- TIS (Taxpayer Information Summary): Derived/aggregated income figures
- Previous year demands: Outstanding tax from prior assessment years
If everything matches → refund is approved → moves to Stage 4.
If any mismatch is found → return enters the “risk management” queue → processing time doubles or triples. You may receive a 143(1) intimation with adjustments, or the return may sit in the queue indefinitely until a manual review clears it.
Stage 4: Refund Dispatch (After 143(1) Intimation)
Once the 143(1) intimation is generated (showing “No demand, no refund” or a refund amount), the refund is sent to your pre-validated bank account via NEFT/ECS. This transfer takes 7-10 working days after the intimation date.
But: “Processed” does not mean “credited.” Three things can silently block the credit:
- Section 245 adjustment — Refund offset against an old demand without clear notification
- Bank account failure — Dormant account, wrong IFSC, unvalidated account
- NEFT settlement delay — Especially for NRO accounts or recently merged banks
The 7 Real Reasons Your Refund Is Stuck
Reason 1: AIS Mismatch Flagged Your Return
The #1 cause. Even Rs 8,000 of unreported FD interest from an old bank account creates a mismatch. The system does not ask for an explanation — it flags the return for extended processing or raises an adjusted demand.
How to check: Download your AIS from Services → AIS on the e-filing portal. Compare every line against your filed ITR. If you see income in AIS that you did not declare, this is your bottleneck. Read the AIS verification checklist in the ITR filing guide for the exact reconciliation process.
Fix: File a revised return (Section 139(5)) with the missing income included. For AY 2026-27, revised returns can be filed until March 31, 2027 — but Budget 2026 introduced a Rs 5,000 fee (Rs 1,000 if income under Rs 5 lakh).
Reason 2: TDS Credit Mismatch
You claimed Rs 1,20,000 TDS. Form 26AS shows Rs 1,15,000 because your employer deposited Q4 TDS late, or a bank reported a slightly different figure. The CPC rejects the Rs 5,000 difference and holds processing.
How to check: Download Form 26AS from e-File → View Form 26AS. Compare TDS claimed in your ITR vs what Form 26AS shows for each deductor.
Fix: Contact the deductor (employer, bank, tenant) and ask them to file a TDS correction return. Once Form 26AS updates, the mismatch resolves automatically during processing. If correction is not possible, claim only the amount shown in Form 26AS in your revised return.
Reason 3: Bank Account Not Pre-Validated
The refund was processed and dispatched but your bank account is not pre-validated on the e-filing portal — or the IFSC code is outdated after a bank merger. The refund bounces back to the department.
How to check: Go to My Profile → My Bank Accounts. Each account should show “Validated” status. Check the IFSC code — after recent bank mergers (Dena-Vijaya into Bank of Baroda, OBC-UBI into Punjab National Bank, Syndicate into Canara Bank), old IFSC codes are invalid.
Fix: Add the correct bank account, validate it (takes 24-72 hours), then submit a Refund Reissue Request: e-File → Income Tax Returns → View Filed Returns → click acknowledgement number → Refund Reissue.
Reason 4: Silent Demand Adjustment (Section 245)
The department adjusted your refund against an outstanding demand from a previous year — without clearly notifying you. Your portal shows “processed” but the money never arrives, or arrives as a smaller amount.
How to check: Go to Pending Actions → Outstanding Tax Demands. If there is an old demand (even from AY 2020-21 or earlier), your current refund was likely offset against it.
Fix: If the old demand is incorrect, file a rectification under Section 154 for that specific assessment year. If the demand is correct but you want your current refund first, you can respond to the demand online and request the department to not adjust.
Reason 5: High-Value Transaction Audit
Returns with large refund claims, property transactions above Rs 30 lakh, foreign remittances above Rs 7 lakh, or capital gains above Rs 10 lakh may be flagged for additional verification. This is the “AI-driven risk management” the department references — and it adds 60-120 days to processing.
How to check: If your return has been under processing for 90+ days with no 143(1) intimation and no notice, it is likely in the risk management queue.
Fix: You cannot expedite this directly. File a grievance after 120 days to create a paper trail and trigger human review.
Reason 6: Defective Return Not Responded To
You received a Section 139(9) defective return notice — but missed it because it was buried in portal notifications. You had 15 days to respond. The return is now invalid. No processing, no refund.
How to check: Go to Pending Actions → Worklist. Check for any unresponded notices. Also check the Notifications tab.
Fix: If within the 15-day window, respond immediately. If past the window, write to the Assessing Officer requesting condonation of delay with a valid reason. There is no guarantee of approval.
Reason 7: E-Verification Never Completed
You thought you verified, but the OTP timed out or the session dropped. The portal shows the return as “Submitted and Pending Verification.” This is not a processing delay — your return was never accepted.
How to check: View Filed Returns → check if status says “Successfully e-Verified” or “Submitted and Pending Verification.”
Fix: E-verify now using Aadhaar OTP. If more than 30 days have passed since filing, your return is invalid. You must file again as a belated return (with penalties).
The Exact Escalation Path (Step by Step)
If your refund has been stuck for more than 60 days after e-verification, follow this sequence. Each step builds on the previous one — do not skip ahead.
Step 1: Self-Diagnosis (Day 60)
Before escalating, rule out the 7 reasons above. Check:
- Return status shows “Successfully e-Verified”
- No pending notices in Worklist or Notifications
- No outstanding demands in Pending Actions
- Bank account is pre-validated with correct IFSC
- 143(1) intimation has or has not been received
- AIS matches your filed ITR (no mismatches)
- Form 26AS TDS credits match your ITR
If you find the issue, fix it directly. No escalation needed.
Step 2: Call CPC Helpline (Day 75)
Number: 1800-103-0025 (toll-free) or 080-46122000
Hours: Monday to Friday, 8 AM to 8 PM IST
What to say: “My return for AY 2026-27 was filed on [date], e-verified on [date], acknowledgement number [number]. It has been [X] days. No 143(1) intimation received. Please check the processing status and provide a timeline.”
What to note: The agent’s name, ticket/reference number, and any specific reason they provide for the delay. This ticket number is your evidence for the next step.
Reality check: During peak season (August-November), wait times are 30-60 minutes. Call early morning (8-9 AM) for shorter waits.
Step 3: File e-Nivaran Grievance (Day 90)
If the CPC helpline did not resolve the issue within 15 days of your call:
Path: Log in to incometax.gov.in → Services → Grievance → Submit Grievance
Category: Refund → Refund not received
Template text (adapt with your details):
Subject: Refund for AY 2026-27 pending beyond 90 days — Acknowledgement No. [XXXXXXX]
I filed my ITR for AY 2026-27 on [date] and e-verified on [date]. Acknowledgement number: [number]. PAN: [PAN].
As of today, [X] days have elapsed since e-verification. I have not received the 143(1) intimation or the refund of Rs [amount].
I called the CPC helpline on [date] and received ticket number [number]. No resolution was provided.
My pre-validated bank account details are: [Bank name], Account No. [last 4 digits], IFSC [code].
I request expedited processing and refund credit. I am entitled to interest under Section 244A for the delay period.
Attached: Copy of ITR-V acknowledgement, e-verification confirmation.
Save the grievance tracking number. The department must respond within 30 days.
Step 4: Escalate to Income Tax Ombudsman (Day 120)
If the grievance is not resolved within 30 days:
Path: Search for “Income Tax Ombudsman” + your city on the department website. Each region has a designated Ombudsman.
What to submit: A formal complaint with:
- Your PAN and acknowledgement number
- Timeline of all actions taken (filing date, verification date, CPC call date + ticket, grievance date + tracking number)
- Copies of all correspondence
- Specific relief requested: “Process return and issue refund with Section 244A interest”
Timeline: CAs report that Ombudsman escalation resolves most stuck cases within 45-60 days. The Ombudsman has authority to direct the CPC to prioritize processing.
Step 5: Legal Recourse — High Court Writ Petition (Day 180+)
This is the nuclear option, rarely needed. If all administrative channels fail after 6+ months:
A writ petition under Article 226 of the Constitution can be filed in the High Court directing the department to process your return and issue the refund with interest. Courts have consistently held that unreasonable delay in processing returns and issuing refunds is a violation of the taxpayer’s rights.
Cost: Rs 15,000-50,000 in legal fees. Justified only for large refunds (Rs 1 lakh+).
Practical alternative: Many CAs report that simply mentioning the High Court writ in an Ombudsman complaint accelerates resolution — the department prefers to avoid court orders.
Refund Interest: What the Department Owes You for Delays
Under Section 244A, you are entitled to simple interest at 0.5% per month (6% per year) on delayed refunds.
| Refund Source | Interest Starts From |
|---|---|
| Excess TDS / advance tax | April 1 of the assessment year |
| Self-assessment tax overpayment | Date of filing the return |
| Revised return with higher refund | Date of filing the revised return |
The interest is calculated automatically and included in the refund. You do not need to claim it separately.
But: If the delay is “attributable to the assessee” — late e-verification, incorrect bank details, not responding to notices — no interest is payable for that period. The department interprets this broadly.
The interest is taxable. Section 244A interest received is taxable as “Income from Other Sources” in the year you receive it. It will appear in your AIS for the next year’s filing. Don’t forget to declare it — ironically, missing this creates the same AIS mismatch that probably delayed your refund in the first place.
How to Prevent Refund Delays Next Year
These are not generic tips. Each one directly addresses a specific bottleneck in the processing pipeline.
1. File in April-May, Not July
Returns filed in April or May enter an empty CPC queue. Processing takes 15-20 days. Returns filed July 25-31 enter a queue of 3-4 crore returns. File early — the only prerequisite is having your Form 130 (replacing Form 16) and AIS available. Form 130 is typically available by mid-April via TRACES.
2. Reconcile AIS Before Filing, Not After
Download AIS, cross-check every line against bank statements, broker reports, and Form 130. Fix mismatches via AIS feedback. File ITR only after reconciliation is complete. This single step prevents the most common reason for extended processing. See the detailed AIS checklist for the exact categories to verify.
3. Claim Only What Form 26AS Shows
For TDS credits, claim exactly the amount in Form 26AS — not Form 130, not your salary slip, not what you think was deducted. The CPC matches TDS claims against 26AS only. Any gap triggers processing delays.
4. Pre-Validate Your Bank Account Before Filing
Go to My Profile → My Bank Accounts → add and validate your account. Validation takes 24-72 hours. Do this in April, not after filing. Check that the IFSC code is current — bank mergers have invalidated thousands of IFSC codes.
5. E-Verify Within 5 Minutes of Filing
Do not file and “verify later.” Use Aadhaar OTP immediately — it takes under 2 minutes. The 30-day window is a maximum, not a target. Same-day verification starts the processing clock immediately.
6. Clear Outstanding Demands Before Filing
Check Pending Actions → Outstanding Tax Demands. If there is an old demand — even Rs 500 from AY 2019-20 — pay it or file a rectification before filing your new return. Otherwise, your refund will be silently adjusted against it under Section 245.
7. Avoid Round Numbers in Refund Claims
This is practical CA advice: a refund claim of exactly Rs 50,000 or Rs 1,00,000 is more likely to be flagged for manual review than Rs 48,372. This is not a rule — it is a pattern observed by tax professionals. File accurate numbers naturally and this takes care of itself.
When to Involve a CA vs. DIY
| Situation | DIY or CA? | Why |
|---|---|---|
| Refund under processing, no notices | DIY — follow the escalation path above | CPC helpline + grievance portal are self-service |
| 143(1) intimation with small adjustment (< Rs 5,000) | DIY — file Section 154 rectification online | Straightforward, no interpretation needed |
| 143(1) intimation with large adjustment (> Rs 25,000) | CA | Need to verify whether adjustment is correct before responding |
| Refund adjusted against disputed old demand | CA | Requires rectification of the old year’s assessment |
| Bank account rejection / refund failure | DIY — reissue request is self-service | Portal-based process with no tax interpretation |
| No 143(1) after 120+ days | DIY first — file grievance, then escalate | If Ombudsman route fails, CA for writ petition |
| Refund for NRI to NRO account | CA recommended | DTAA credits, Form 67 issues, and bank routing complications |
A CA charges Rs 2,000-5,000 for simple refund-related issues and Rs 5,000-15,000 for complex demand disputes. For refunds under Rs 10,000, the CA fee may exceed the refund itself — use the DIY path.
Key Numbers to Save
| What | Number / Link |
|---|---|
| CPC Helpline (toll-free) | 1800-103-0025 |
| CPC Helpline (direct) | 080-46122000 |
| E-filing helpdesk | 1800-103-4455 |
| E-filing portal | incometax.gov.in |
| Refund status (NSDL) | tin.tin.nsdl.com/oltas/refund-status |
| Grievance portal | incometax.gov.in → Services → Grievance |
| Section 244A interest rate | 0.5% per month (6% per year) |
| Outer processing deadline for AY 2026-27 | December 31, 2026 |
Related Guides
- ITR Filing Guide: Form Selection, AIS Verification & Mistakes — prevents the issues that cause refund delays
- Tax Notice — What to Do and What NOT to Do — if your “refund delay” is actually a demand notice
- Old vs New Tax Regime: Which Saves More? — choosing the wrong regime inflates your tax and creates artificial refund claims
- Income Tax Act 2025 vs 1961: Section Mapping — know the new section numbers when referencing law in grievances
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Tax laws change frequently. Consult a qualified chartered accountant for your specific situation. All figures are based on provisions applicable to FY 2025-26 (AY 2026-27) as of May 2026.