The sooner you file your ITR the earlier you will receive your refund. File it well in advance of the deadline.
The Income Tax Return (ITR) is a critical document that records an individual’s or entity’s income earned during a fiscal year.
Every year, the Income Tax Department requires taxpayers to file ITRs. One of the most asked taxpayer questions is how long it takes to get an ITR refund.
Moneycontrol provides a thorough overview of the ITR refund procedure and how long it takes.
Recognising the ITR refund procedure
Before we go into the timeframe, it’s critical to understand how ITR refunds work. When taxpayers pay more tax than they owe, whether through TDS or advance tax, they qualify for a refund. After the person files their ITR and the I-T Department verifies the claim and the refund is handled.
The refund is deposited into the taxpayer’s bank account. To improve transparency and timeliness, the I-T Department has moved the process totally online. This digitisation has greatly shortened refund processing time, making the procedure more efficient and user-friendly.
Factors influencing ITR refund timelines
The time it takes to get an ITR refund is determined by various factors, including:
Information accuracy: The accuracy of the ITR information is critical. Any discrepancies or inaccuracies may delay reimbursement. This includes properly reporting income, deductions, and taxes paid. Before submitting the ITR, it is critical to cross-check all details. A common mistake that often results in tax refund delays is the provision of incorrect or outdated bank account information by tax filers. It’s essential to ensure that all bank details are accurate and up-to-date. Furthermore, when multiple bank accounts are in play, it’s crucial to clearly specify the particular account intended for the refund deposit.
Filing deadline: The I-T Department begins processing refunds after the completion of the ITR verification process. Once the taxpayer’s ITR is verified, the department will assess the return for accuracy. If everything is in order, the department will process the refund. The time taken for this process can vary depending on the complexity of the ITR and the volume of returns being processed by the department.
Filing mode: E-filing ITRs is faster than paper filing. The I-T Department encourages people to file their forms electronically in order to receive faster processing and refunds. E-filing also minimises ITR errors and discrepancies, resulting in speedier processing. It is now mandatory to file the return online, there is no option of filing the return offline in paper format, except in certain circumstances for very senior citizens.
Verification: The ITR must be verified either online using an Aadhaar OTP or physically by delivering a signed copy of ITR-V to the Centralised Processing Centre in Bengaluru. Only after successful verification is reimbursement processed. Delays in verification can cause refunds to be delayed.
ITR refund expected timeline
If all conditions are met, the ITR reimbursement is usually issued within 2-6 months (The average processing time for refunds has decreased significantly, and in certain instances, refunds are now being credited within a matter of weeks.) of the date the return was e-filed. However, this is a broad schedule that may change depending on the criteria listed above.
The taxpayer receives an email from the I-T Department once the refund has been processed. The status can be monitored online at the department’s website. Depending on the stage of the refund process, the status can be ‘Refund paid,’ ‘Refund failed,’ ‘Refund expired,’ and so on.
How can I speed up the ITR refund process?
Here are some pointers to help you get your ITR refund faster:
File early: The sooner you file your ITR the earlier you will receive your refund. It is advisable to file your ITR well in advance of the due date. This not only ensures prompt processing but also allows you plenty of opportunity to correct any problems or anomalies.
E-file: Filing your ITR electronically is faster and more efficient. It also decreases the possibility of errors. The e-filing platform for the I-T Department is user-friendly and helps you through the procedure, making it simple even for first-time filers.
Verify your ITR: As soon as you file your ITR, make sure to verify it. Delays in verification can cause delays in refund processing. The I-T Department offers a variety of verification options, including electronic verification via Aadhaar OTP and EVC.
Ensure accurate information: Check whether all of the information in the ITR is correct. Any inconsistencies can cause a delay. Before submitting the ITR, double-check all the facts, including income, deductions, and tax paid.
While the ITR refund procedure is simplified and quick, the time it takes to complete can vary depending on a number of circumstances. Taxpayers can ensure a smooth and timely refund procedure by recognising these issues and implementing best practices. To minimise complications during the ITR filing and return process, it is critical to be aware and up-to-date on tax rules and regulations.
Source: https://www.moneycontrol.com/news/business/personal-finance/income-tax-return-filing-how-long-does-it-take-to-receive-an-itr-refund-10954611.html
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