Direct tax refunds jump 29 percent to Rs 2.20 lakh crore: Refund still pending? Here’s what you should…

According to fresh market updates, The government has released the latest direct tax collection data, showing that refunds rose 29.19 percent year-on-year to Rs 2,20,026.72 crore as of September 17, 2026, compared with Rs 1,70,310.28 crore during the corresponding period last year. The data comes as millions of taxpayers keep wait for refunds after filing their income-tax returns for assessment year (AY) 2026-27.

The latest figures show that the government has issued substantially more refunds this year, even as the Income Tax Department received more than 7.8 crore ITRs by August 31. That stated, filing and e-verifying an ITR does not mean that the refund will be credited immediately. A return has to be processed before the refund is released. For taxpayers who are still waiting, checking the exact status of the return is the first step. The Income Tax Department's e-filing portal allows taxpayers to see the status of their return and refund for a particular assessment year.

ITR filed but refund not received?

A successful ITR filing and e-verification do not automatically mean the refund has been approved. The Income Tax Department must first process the return and reconcile the information noted by the taxpayer with TDS, TCS, advance tax, self-assessment tax, and other information available with it.

A mismatch in TDS or TCS credits is one of the reasons a refund can stay pending. For instance, the taxpayer may have claimed a particular amount of TDS in the ITR, while the corresponding credit may not be reflected correctly in Form 26AS or the department's records. Differences between the ITR and AIS, TIS or Form 26AS can additionally require reconciliation before the return is processed.

Taxpayers waiting for a refund should additionally check whether there is an outstanding tax demand from an earlier assessment year. An outstanding demand can result in the refund being adjusted against the amount payable.

Other issues that can hold up processing include a defective return, additional verification requirements or pending communication from the tax department. Taxpayers should as a result check their e-filing account for any notice or communication requiring a response.

Bank account offering can delay refund

A refund can additionally get stuck even after the tax calculation has been completed if there is a problem with the bank account registered on the e-filing portal.

Taxpayers should check whether the account is active and pre-validated and whether the bank details entered on the portal are correct. A closed account or failure to validate the bank account can prevent the refund from being credited.

If the refund has failed because of a bank-related offering, taxpayers should correct the relevant details and follow the prescribed refund reissue process.

How to check income-tax refund status

Before raising a grievance, taxpayers should first establish exactly where the return or refund is stuck. They can log in to the income-tax e-filing portal and go to the filed returns section under the e-File menu.

The portal can show different stages of the return, including verification, processing, defective notices, proposed refund adjustment, refund credit and refund failure. This helps taxpayers distinguish between an ITR that is still being processed and a refund that has already been determined but could not be credited.

If the return has been processed and a refund has been determined, the taxpayer should check the refund or payment status separately. If the refund has failed, the bank account details should be checked and a refund reissue request should be made, wherever applicable.