Income Tax Refund Not Received, Govt plans to reduce refund processing time

Introduction

News: In a significant development, the Income Tax Department of India is planning to reduce the average processing time for Income Tax refunds. This move will enable taxpayers to receive their refunds sooner. Currently, the average processing time for receiving an Income Tax refund is 16 days, but the department aims to reduce it by approximately 6 days. This news comes as a relief for taxpayers who have been eagerly awaiting their refunds. However, there are still certain aspects related to this development that the public should be aware of. This article will provide an in-depth understanding of the refund processing time, how to check the status of a tax refund online, and other relevant information.

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The Plan to Reduce Income Tax Refund Processing Time

According to a report by Business Standard, the Income Tax Department is considering reducing the time required to process tax refunds from the current 16 days to just 10 days. This new timeline is expected to be implemented during the current fiscal year. However, it is important to note that these details have been sourced from third-party sources and cannot be independently verified by Sarkari Result.

The Founder and CEO of Clear, Archit Gupta, expressed his support for this move, stating that expediting the refund payout for taxpayers who have filed their returns on time is a positive step. He emphasized that there is a high expectation for refunds to be processed sooner, given the large number of taxpayers who have timely filed their returns. The increased efficiency in refund processing is particularly significant considering the record number of Income Tax Returns (ITRs) filed until July 31, 2023.

Record-Breaking Income Tax Returns

For the Annual Year 2023-24, an impressive number of ITRs were filed in the first quarter, surpassing 6.77 crore filings. This represents a 16.1% surge compared to the previous year’s filings for AY 2022-23, which totaled 5.83 crore until July 31, 2022. This year’s increase in the number of ITRs reflects the growing compliance and tax awareness among taxpayers. With such a large volume of returns to process, reducing the refund processing time becomes crucial.

Understanding the Time Required to Receive a Refund

Balwant Jain, an income tax and investment expert based in Mumbai, explained that tax refunds are not issued instantly. The refund is released only after the Department of Income Tax verifies and cross-checks the details of taxes paid against the information provided in the return. Generally, it takes 20-45 days to receive a refund after filing and verifying the ITR.

However, in the financial year 2022-23, the Income Tax Department significantly expedited the processing time for ITRs, reducing the average processing time to just 16 days. Abhishek Soni, the CEO and co-founder of Tax2win, highlighted the department’s use of advanced technology to achieve this improvement. He emphasized that this was a remarkable achievement considering the previous average processing time of 20-45 days.

Checking Income Tax Refund Status Online

Taxpayers can now easily check the status of their tax refund online. By visiting the official website of Income Tax India and logging in with their PAN number as the User ID, taxpayers can access the “View Return/Forms” section. From there, they can select the relevant option for Income Tax Returns and enter the assessment year. Clicking on the relevant ITR acknowledgment number will provide the status of their refund.

Conclusion

The Indian government’s plan to reduce the processing time for Income Tax refunds is a welcome development for taxpayers. With the current average processing time of 16 days set to decrease further, taxpayers can expect to receive their refunds sooner. This move is particularly significant considering the record-breaking number of ITRs filed until July 31, 2023. By expediting the refund processing time, the Income Tax Department aims to provide a more efficient and user-friendly experience for taxpayers.