New Delhi: For many taxpayers across India, the wait for income tax refunds has been unusually long this year. According to the Income Tax Department’s website, nearly 1.23 crore income tax returns (ITRs) are still pending for processing, out of the 3.98 crore returns filed so far. While 2.74 crore ITRs have already been cleared as of August 31, lakhs of taxpayers are yet to see refunds credited to their accounts. With the extended deadline for filing ITRs now set at September 15, 2025, for those not requiring an audit, the pressure is building as only two weeks remain. But for those who have already filed, the bigger question is: why is the refund process so slow?

One key reason lies in adjustments for past tax arrears

If a taxpayer has outstanding dues from earlier years or pending appeals, the department may offset the refund against those arrears, delaying or reducing the payout. Similarly, large or suspicious refund claims trigger deeper scrutiny. In such cases, taxpayers are often asked to submit additional documents, which naturally prolongs the process.

Another factor is the seasonal backlog

The peak filing season creates a flood of cases for the department, and despite automation, manual checks in sensitive cases lead to bottlenecks. Adding to this are technical glitches, with many taxpayers complaining that their AIS (Annual Information Statement) and Form 26AS data don’t match, leaving refunds stuck.

The late release of ITR forms also played a role

While ITR-1 and ITR-4 were available in May, ITR-2 and ITR-3 came only in July, delaying filings and, in turn, refunds. Issues with **bank account validation—such as incorrect account numbers, inactive accounts, or incomplete pre-validation on the portal—have further stalled payouts.

Another common mistake is failure to e-verify returns

Without Aadhaar OTP verification, net banking confirmation, or sending ITR-V to CPC Bengaluru, the return remains incomplete, and the refund cannot be processed. Finally, discrepancies between declared income and AIS/Form 26AS data often put refunds on hold until the department finishes its checks.

The government is aware of these delays

Finance Minister Nirmala Sitharaman has urged tax officials to speed up refunds and restore taxpayer confidence. The deadline for processing older returns (AY 2023–24) has also been extended to November 30, 2025, raising hopes for quicker resolutions. But for now, taxpayers must remain patient—and double-check their filings—to avoid unnecessary refund roadblocks.

Prime Minister Narendra Modi on Tuesday received the country’s first made-in-India semiconductor chip at the inauguration of Semicon India 2025 in New Delhi. Union IT minister Ashwini Vaishnaw presented the Vikram 32-bit processor, developed by Isro’s Semiconductor Lab, along with test chips from four approved projects.

According to news agency ANI, Vaishnaw said the achievement reflects the country’s rapid progress under the India Semiconductor Mission launched in 2021. “Just a few years ago, we met for the first time to make a new beginning driven by our Prime Minister’s farsighted vision. In a short span of 3.5 years, we have the world looking at India with confidence. Today, the construction of five Semiconductor units is going on at a rapid pace…We just presented the first ‘Made-in-India’ chip to PM Modi,” he stated.Vaishnaw added that despite global policy turmoil, India has emerged as a “lighthouse of stability and growth.” The Vikram processor, fully indigenous, has been qualified for use in harsh launch vehicle conditions, ANI reported.The minister highlighted India’s semiconductor ecosystem push, including the Rs 76,000 crore Production Linked Incentive scheme, of which nearly Rs 65,000 crore has already been committed. He also referred to the Outsourced Semiconductor Assembly and Test (OSAT) Pilot Line Facility launched in Sanand, Gujarat, with CG-Semi expected to roll out chips soon.As per ANI, the government has sanctioned 23 design projects under the Design Linked Incentive scheme, while 10 semiconductor manufacturing projects worth over Rs 1.6 lakh crore have been approved across Gujarat, Assam, Uttar Pradesh, Punjab, Odisha, and Andhra Pradesh.Industry leaders also hailed India’s growing role. Tim Archer, CEO of Lam Research, said India is laying the foundation for a “resilient semiconductor ecosystem” as the global market moves toward the $1 trillion mark. Kai Beckmann of Merck projected India’s local semiconductor market would reach $100 billion by 2030, while AMD CTO Mark Papermaster highlighted the company’s $400 million India investment plan announced at last year’s Semicon event.Beckmann stressed collaboration, calling semiconductors a “team sport,” while Papermaster praised India’s “extraordinary talent base” and government backing.The three-day Semicon India 2025 aims to position India as a global hub for chip design, manufacturing, and innovation, focusing on building a robust and sustainable ecosystem, ANI reported.