Income Tax Refund in 12 hours! ITR processing time reduced as taxpayers file in record numbers

• July 29, 2023
• CA Chandan Agarwal's Office

Income Tax Refund News: Income Tax Refund processing time has become fast. Taxpayer claims to have received refund within 12 hours.

Income Tax Refund News: Income Tax Refund processing time has become fast. But how fast? While taxpayers, who filed their returns for AY 2023-24 had to wait for a few weeks for the processing of refunds, many return filers in July received their refunds within a few days. On Thursday, a taxpayer on social media claimed he received his tax refund within 12 hours.

Sharing screenshots of his ITR filing and refund deposit messages, Twitter user Nirnay Kapoor, who is a journalist by profession, wrote he had never experienced such fast processing of the refund. He had filed his return in the morning on July 27 and received the message of refund deposit by the evening of the same day.

Earlier this month, Finance Minister Nirmala Sitharaman said that tax-filing reforms have resulted in the speedy filing and processing of income tax returns. She said there has been a 100% increase in the total percentage of ITRs processed within one day of their filing compared to the previous year.

According to tax experts, return filers should never worry about refund processing as the system has become very fast compared to previous years. Instead, taxpayers should try to file their returns as early as possible to become eligible for early refunds and avoid last-minute filing hassles.

There is also a little-known benefit of early ITR filing. The Income Tax Department pays interest at the rate of 0.5% per month on the refund when ITR is filed by a taxpayer before the due date. The calculation of this interest is done from April 1 till the date of refund.

The due date to file ITR for taxpayers whose accounts don’t need to be audited is July 31. Till July 27, more than 5 crore returns have already been filed by taxpayers. Also, the Income Tax Department has already processed over 2.69 crore verified ITRs. Know the latest news updates on Income Tax Return Due Date here. If you haven’t filed your ITR yet, you should try to file it as soon as possible to avoid the consequences of late ITR filing.

Source: https://www.financialexpress.com/money/income-tax/income-tax-refund-in-12-hours-itr-processing-time-reduced-as-taxpayers-file-in-record-numbers/3190898/