Good News for Taxpayers: Pending Returns Drop Below 1 Crore for the First Time

The Income Tax Department has reached a significant milestone that brings good news for millions of taxpayers across India. For the first time in Assessment Year 2025-26, the number of pending Income Tax Returns waiting to be processed has dropped below the 1 crore mark. This development offers a ray of hope for taxpayers who have been anxiously waiting for their tax refunds.

Latest Income Tax Processing Statistics

According to the most recent data from the Income Tax Department’s official portal, as of October 19, 2025, the processing statistics stand as follows:

The department has verified 7,48,82,209 Income Tax Returns for AY 2025-26. Out of these verified returns, 6,48,92,036 ITRs have been successfully processed. This leaves approximately 99,90,173 returns still pending processing. The total number of returns filed for this assessment year stands at 7,81,64,915.When we compare this with the previous day’s data from October 18, 2025, we can see the steady progress being made by the tax department. On October 18, the verified returns stood at 7,48,35,716, and processed returns were at 6,44,02,462. The number of returns filed was 7,81,20,480.

Breaking Down the Numbers

https://www.incometax.gov.in/iec/foportal

The data reveals some interesting trends in how the Income Tax Department is managing the massive volume of tax returns. In just one day, between October 18 and October 19, the department verified an additional 46,493 returns and processed 4,89,574 returns. This acceleration in processing speed is encouraging for taxpayers.

However, it is important to note that the number of filed returns also increased by 44,435 during this same period. This means that even as the department works through the backlog, new returns continue to be filed every day. The number of Individual Registered Users on the income tax portal has grown from 13,52,66,896 on October 18 to 13,52,71,745 on October 19, showing that more taxpayers are joining the digital tax filing system.

Why This Milestone Matters for Taxpayers

The reduction of pending returns below 1 crore is not just a statistical achievement. It has real implications for ordinary taxpayers who are waiting for their refunds. When your Income Tax Return is processed, the department either confirms your refund amount or sends you a notice if there are any discrepancies. Until processing is complete, refunds remain stuck in the system.

For many taxpayers, especially salaried individuals who have had excess tax deducted at source, these refunds represent significant amounts of money. Some people plan major purchases or investments around receiving their tax refunds. The faster processing means these funds reach taxpayers sooner, allowing them to use their own money without unnecessary delays.

Understanding the ITR Processing Timeline

To understand why this milestone is significant, it helps to know how the Income Tax Return processing works. When you file your ITR, the first step is verification. You must verify your return within 30 days of filing using methods like Aadhaar OTP, net banking, or by sending a signed physical copy to the Centralized Processing Centre in Bengaluru.

Once verified, your return enters the processing queue. The Income Tax Department’s systems check your return against the information they have from Form 26AS, Annual Information Statement, and other sources. They verify that the income you have declared matches with what has been reported by your employer, banks, and other entities. They also check that you have correctly claimed deductions and calculated your tax liability.

If everything matches and is in order, your return is processed, and if you are due a refund, it is sent to your bank account. This entire process can take anywhere from a few weeks to several months, depending on the complexity of your return and the volume of returns being processed.

Current Processing Speed and Efficiency

The current data shows that the Income Tax Department is processing returns at an impressive rate. In a single day, nearly 5 lakh returns were processed. If this pace continues, the remaining backlog of approximately 1 crore returns could be cleared within 20 to 25 days. However, this is a simplified calculation that does not account for the complexity of different returns or the continuous influx of new filings.

Factors Affecting Your Refund Timeline

While the overall processing speed has improved, individual taxpayers may still experience different timelines for receiving their refunds. Several factors can affect how quickly your return is processed. Simple returns filed by salaried individuals with income from salary and interest typically get processed faster. If you have claimed standard deductions and have straightforward tax-saving investments under Section 80C, your return moves through the system quickly.

Returns that involve capital gains, business income, income from house property, or complex deductions may take longer to process. The system may flag these returns for additional scrutiny or manual verification.If there are mismatches between the income you have declared and the information in Form 26AS or your Annual Information Statement, your return will require additional checking. Common mismatches include unreported interest income, missing TDS entries, or discrepancies in capital gains calculations.

What Taxpayers Should Do Now

If you have filed your return and are waiting for processing, there are several things you should do to ensure smooth processing and timely receipt of your refund.

First, make sure you have verified your return. An unverified return will not be processed, no matter how long you wait. Check your email for the verification link or log into the income tax portal to complete the verification process.

Second, regularly check your email and the income tax portal for any notices or communications from the department. If they have found any discrepancy in your return, they will typically send you a notice asking for clarification or additional documents. Responding promptly to such notices prevents delays.

Third, ensure that your bank account details in your ITR are correct and that the account is active. Many refund delays happen simply because the bank account mentioned in the return is closed or the details are incorrect.

Despite the positive milestone of bringing down pending returns below 1 crore, significant challenges remain in the tax administration system. The sheer volume of returns continues to grow year after year. For AY 2025-26, over 7.81 crore returns have been filed so far, and this number will continue to increase until the deadline for revised returns.

Quality of processing is as important as speed. While automation has made processing faster, it can also lead to errors if data from various sources is not correctly integrated. Many taxpayers receive incorrect refund amounts or face unwarranted demands due to system-generated errors.The communication between the tax department and taxpayers also needs improvement. Many people are unaware of how to check their processing status, what to do if they receive a notice, or how to track their refund. Better taxpayer education and more accessible customer support would help resolve many issues.