Bringing Delight to Taxpayers Receiving Refunds: For those accustomed to annual income tax refunds following their ITR filings, this news comes as a pleasing update. Notably, a substantial 6.77 crore individuals successfully filed their ITRs by the deadline of July 31. Despite this, a subset of individuals has voiced concerns over yet to receive their income tax refunds. However, a positive shift is underway as the Income Tax Department is actively strategizing to expedite refund processing. Emerging reports suggest that the department is contemplating a significant reduction in the refund processing time, potentially shortening it to a mere 10 days.
Income Tax Refund Processing Period Shortened to 16 Days
We would like to inform you that the standard duration for receiving tax refunds has been revised to a mere 16 days. Additionally, according to a media report, there are indications that this new tax refund timeline is poised to be introduced within the ongoing fiscal year. Industry experts highlight that this initiative will greatly benefit individuals awaiting refunds even post e-filing. It’s important to note that the Income Tax Department does not expedite immediate refunds; rather, the issuance of refunds occurs subsequent to a comprehensive verification of the pre-paid tax particulars.
Formerly the process spanned between 20 to 45 days
Typically, the time required for the refund to be reflected in one’s account post ITR filing and validation ranged from 20 to 45 days. Nonetheless, in the fiscal year 2022-23, the tax authority expedited the processing of Income Tax Returns (ITRs) through the integration of advanced technology. Consequently, the average processing period has been reduced to a swift 16 days.
It’s noteworthy that the current year, until July 31, 2023, has witnessed a record-breaking number of ITR filings. The cumulative count of ITRs filed for Assessment Year (AY) 2023-24 reached an impressive 6.77 crore by the aforementioned date. This marked an increase of 16.1% compared to the total ITR filings for AY 2022. In contrast, a total of 5.83 crore ITRs were submitted by July 31, 2022.