ITR processing time reduced to 10 days for AY 2023-24, yet many await refunds: Here’s why
- September 8, 2023
- CA Chandan Agarwal's Office
ITR refund: For AY 2023-24, the Income Tax Department has already disbursed over 2.45 crore refunds. However, despite this progress, a considerable number of taxpayers are yet to receive their refunds.
The Central Board of Direct Taxes (CBDT) has achieved a significant reduction in the average processing time for Income Tax Returns (ITRs) filed for the assessment Year (AY) 2023-24. The latest data, unveiled by the Ministry of Finance (MoF) on September 5, 2023, reveals that the ITR processing time has been slashed to a mere 10 days, compared to 82 days for AY 2019-20 and 16 days for AY 2022-23.
For AY 2023-24, the Income Tax Department has already disbursed over 2.45 crore refunds, marking a substantial improvement in efficiency. However, despite this progress, a considerable number of taxpayers are yet to receive their refunds.
The MoF disclosed that the Income Tax Department has successfully verified 6.84 crore ITRs out of the 6.98 crore filed in AY 2023-24. Among these verified returns, over six crore ITRs have already been processed, constituting more than 88 percent of the verified ITRs.
ITR refund delay
The department faces challenges in processing certain categories of ITRs due to a lack of essential information or action from taxpayers. As of September 4, 2023, approximately 14 lakh ITRs for AY 2023-24 remain unverified by taxpayers. The delay in verification hampers the processing, as returns can only be taken up once verification is complete. Taxpayers are strongly encouraged to promptly complete the verification process.
Furthermore, approximately 12 lakh verified ITRs require additional information, and the department has communicated with the respective taxpayers via their registered e-filing accounts. A swift response to these communications is vital to expedite the processing.
Additionally, there are cases where ITRs have been processed, and refunds have been determined, but the department cannot disburse them as taxpayers have not validated their bank account information. Taxpayers are urged to validate their bank accounts through the e-filing portal.
ITR refund progress
The deadline for filing ITRs without penalties for the financial year 2022-23 expired on July 31, 2023, leaving taxpayers eagerly anticipating their refunds. The refund is disbursed either through electronic mode, with direct credit to the account, or via a refund cheque, depending on the option selected by the assessee while filing their annual ITR.
For those keen to check their ITR status, the Income Tax Department provides a process on its website:
Step 1: Open www.incometax.gov.in and log in to the account by entering the user ID (PAN) and password
Step 2: Login and click on the ‘e- file’ option
Step 3: Select ‘Income tax returns’ and then click on ‘View Filed returns’.
Step 4: Now, check the latest ITR filed
Step 5: Select the ‘View Details’ option and it will show the status of the ITR filed
In order to check income tax status through the website tin.tin.nsdl.com, users need to enter their Permanent Account Number (PAN) and select the relevant assessment year. The status will be reflected. ‘Refund paid’ status is also reflected in the ‘Tax Credit Statements’ in Form 26AS.
What to do in case of refund delay?
Taxpayers should check their listed email to see if there is any communication from the Income Tax Department, seeking a response. In that case, it is important to respond to the email at the earliest. In case the ITR status shows that the refund has expired, it means that the refund has not been presented for payment within the validity period of 90 days. The taxpayer, in this case, may raise a refund re-issue request.
Source: https://www.cnbctv18.com/personal-finance/itr-income-tax-return-processing-time-cut-to-10-days-yet-many-refunds-delayed-reasons-steps-17730271.htm
