For many taxpayers this year, the biggest question is not whether they will get a refund but when. Refunds for Assessment Year 2025–26 have been noticeably slow, and both salaried individuals and business professionals are trying to figure out who gets processed quicker — and why.
To understand the pattern, let’s first look at what’s happening behind the scenes and then get into whether the tax department truly prioritises one category over the other.
ITR filings are high, but processing is slow
The ITR filing deadline for AY 2025–26 closed on 16 September 2025, with around 7.53 crore returns filed by that date. Since then, filings have continued steadily.
As of 24 November 2025, the Income Tax Department’s website shows:
Over 8.19 crore ITRs filed
Around 7.88 crore returns verified
About 6.96 crore returns processed
This leaves around 92 lakh returns still unprocessed, which also means refunds for these taxpayers are pending. This gap has remained persistent ever since filings began this year.
Refund delays are also reflected in official numbers. According to CBDT data updated up to 10 November 2025: The total amount of refunds issued this fiscal is down by around 18%, amounting to Rs 2.42 lakh crore.
Meanwhile, net direct tax collections have grown 7% year-on-year — Rs 12.92 lakh crore so far, compared with Rs 12.07 lakh crore last year.
Put simply: collections are rising, but refunds are being released more slowly.
Why are refunds slower this year? CBDT explains
Amid rising taxpayer concerns, CBDT Chairman Ravi Agrawal recently clarified the reason behind the delays. He said that the Income Tax Department is currently carrying out a detailed analysis of refund claims, especially those that are high-value, red-flagged by the system and linked to questionable or excessive deductions.
This extra scrutiny is why the processing speed is slower than usual.
So, who gets refunds faster — salaried or business taxpayers?
While many people assume that salaried individuals automatically get quicker refunds, the truth is slightly more nuanced. Refund timelines depend largely on accuracy of the ITR, clarity of disclosures, supporting documents, whether the system flags the return for review, and how early the return was filed.
However, salaried taxpayers often enjoy a natural advantage. Their income structure is straightforward, mostly captured through Form 16, making mismatches less likely.
Business professionals, on the other hand, usually deal with multiple income streams; deduction-heavy filings; expense claims; loan interest, depreciation, or capital gains.
These lead to higher chances of system-based red flags and can lengthen processing time.
Expert view: Accuracy is everything — not the taxpayer category
Tax expert Dinkar Sharma, Company Secretary and Partner, Jotwani Associates, explains that refunds don’t inherently favour one group over the other.
“Refund timelines don’t inherently favor either salaried taxpayers or business professionals; they depend on the clarity and accuracy of each return. Salaried individuals often experience quicker refunds because their income information is standardized and validated through Form 16, minimizing discrepancies. Business professionals, however, may encounter slower processing due to multiple income sources, complex deductions, and heightened scrutiny. Still, when their accounts are well-maintained and disclosures are comprehensive, refunds can be equally efficient. In practice, the fastest refunds go to those who file early, provide complete documentation, and respond promptly to any queries raised by the tax department.”
ITR category is not the deciding factor — timing and accuracy are
Looking at the processing trends and expert insights, here’s what clearly influences refund speed:
- Filing early helps: Returns filed in June or July — before the traffic picks up — are processed faster.
- Single-source income moves quickly: A simple salary-only ITR with TDS already deducted is processed almost instantly.
- Complex returns take longer: Capital gains, house property losses, depreciation, and business expenses add layers of scrutiny.
- Red-flagged claims are put under review: This is especially relevant this year, as CBDT has openly mentioned examining questionable deductions.
- Prompt response to queries speeds things up: Ignoring an email or portal notification can stall the refund indefinitely.
Summing up…
Salaried taxpayers may appear to get quicker refunds, but it’s not because the department prioritises them. Their returns are simply cleaner, more uniform, and easier to validate. Business professionals can get equally fast refunds — provided their books are updated, deductions are justified, and disclosures are thorough.
This year’s delays are less about taxpayer categories and more about the tax department’s intensified scrutiny of refund claims, especially high-value or deduction-heavy returns. If there’s one takeaway for all taxpayers: accurate, early, and transparent filing is the real key to a fast refund.