ITR refunds AY 2026-27: some land same-day, over 24 lakh filers may wait 90+ days
Early filers report refunds credited within hours of e-verification this season — but tax experts warn more than 2.4 million taxpayers could still see refunds delayed past 90 days. Here's what decides which group you're in.
With the 31 July 2026 deadline for ITR-1 and ITR-2 filers just weeks away, this year’s refund cycle for AY 2026-27 is showing a sharp split: some taxpayers are getting money back within hours, while a large group is on track for a long wait.
The good news: faster processing for clean returns
Several early filers this season have reported refunds credited on the same day as e-verification — one case saw an ITR filed at 12:30 pm processed and refunded by 3 pm the same afternoon. Tax professionals say the pattern holds broadly: returns that are accurate, fully matched to Form 26AS/AIS, and e-verified immediately are moving through the system in days rather than weeks.
The catch: 2.4 million+ filers may wait past 90 days
Despite the faster cases, experts tracking this filing season estimate that more than 24 lakh (2.4 million) taxpayers could see refunds delayed beyond 90 days from filing. The usual culprits are a processing backlog as the deadline nears, mismatches flagged by the department’s own data checks, and cases pulled into CBDT’s ongoing compliance-nudge scrutiny.
What actually determines your refund speed
| Factor | Faster refund | Slower refund |
|---|---|---|
| Form used | ITR-1, ITR-4 (simple income) | ITR-2, ITR-3 (capital gains, multiple sources) |
| Data match | Income & TDS match AIS/Form 26AS exactly | Mismatches trigger manual checks |
| Bank account | Pre-validated on the e-filing portal | Not validated — refund fails/delays |
| E-verification | Done same day via Aadhaar OTP/net banking | Pending, or physical ITR-V posted |
| Filing timing | Filed early in the season | Filed in the last week of July, when volumes spike |
What to do before you file
- Pre-validate your bank account on the income tax e-filing portal — an unvalidated account is one of the most common reasons refunds stall even after processing.
- Reconcile against Form 26AS and AIS before submitting, so nothing you claim conflicts with what the department already has on record.
- E-verify immediately after filing — via Aadhaar OTP or net banking is fastest; posting a signed ITR-V by mail adds days.
- File early, not in the last week of July, when processing volumes peak and turnaround times typically stretch.
Run your numbers on the income tax calculator before you file, and use the old regime calculator if you’re still weighing regime choice — a clean, correct return the first time is the single biggest lever on how fast your refund shows up.
Source: Upstox — Income tax refund for AY 2026-27: are refunds being credited faster this year?. Track your refund status on the Income Tax Department portal.
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