Millions of Tax Returns in Limbo: Parliamentary Scrutiny on Delays

Over 24.64 lakh income tax returns for Assessment Year 2025-26 are pending processing for more than 90 days. The NUDGE campaign led to 1.11 crore updated returns, generating Rs 8,810.59 crore in revenue. Communications were sent to taxpayers to rectify discrepancies, primarily involving new or non-filers.

More than 24.64 lakh income tax returns, filed for the Assessment Year 2025-26, are awaiting processing for over 90 days, according to information provided to Parliament. Out of approximately 8.80 crore income tax returns filed up to February 4, 2026, the backlog remains a significant issue.

The Minister of State for Finance, Pankaj Chaudhary, revealed these figures in a recent parliamentary session, highlighting the NUDGE campaign's role in urging taxpayers to correct their filings. Over the last two years, the campaign led to 1.11 crore taxpayers revising their returns, contributing Rs 6,976.50 crore in additional taxes.

The campaign targeted taxpayers who under-reported assets or income and those claiming excessive deductions. While the total revenue impact of the initiative was Rs 8,810.59 crore, the non-intrusive strategy continues to encourage compliance and rectify tax reporting discrepancies across India.

(With inputs from agencies.)