After submitting their Income Tax Returns (ITR), the next eagerly anticipated event is receiving the tax refund. This is an eagerly awaited moment for both tax experts and taxpayers alike. While certain individuals have reported receiving their refunds in 10-20 weeks, there have been cases where this did not occur. This information is relevant for all those concerned.
Income Tax Refund
An income tax refund refers to an amount reimbursed by the income tax department when the taxes paid surpass the actual owed amount (through methods like TDS, TCS, Advance Tax, or Self-Assessment Tax). The taxation is computed by the income tax department during assessment, factoring in all deductions and exemptions applicable.
As per the guidelines of the Income Tax Department, the refund procedure initiated by the tax authorities commences once the taxpayer’s e-verified return is received. Typically, the refund is expected to appear in the taxpayer’s account within 4-5 weeks.
In case the refund is not received within this timeframe, the taxpayer should examine any communication about inconsistencies in the Income Tax Return (ITR) and review their email for potential notifications from the IT department regarding the refund status. Additionally, the taxpayer can monitor the refund status through the e-filing platform using the following prescribed procedure.
How to Check Income Tax Refund
The taxpayer needs to verify the refund status on the income tax portal and should avoid clicking on any links or messages related to refunds, as these could potentially be fraudulent or deceptive.
How to Check Income Tax Refund Status through TIN NSDL Website
Number of Days taken for Refund Credit
Providing an exact timeframe for Income Tax Return (ITR) refunds is not feasible. Nevertheless, the typical range of days observed commonly is between 20 to 45 days, which is now quicker compared to previous years.
In the preceding year, certain taxpayers experienced a delay of 90 to 120 days before receiving their refund. However, in the current year, some individuals have reported their refunds being processed within 10 to 20 days following ITR verification. Conversely, there are cases where refunds have not been received even after 45 days.
Reasons for Refund Failure
Statistics of ITR Filed and Processed
Based on the information provided by the income tax authority on August 6th, 2023, there are a total of 1,161,07,361 registered individual users for the Assessment Year 2023-24. Out of these, 6,81,71,155 Income Tax Returns (ITRs) have been submitted, with 6,00,04,302 ITRs successfully verified. As of August 6th, the count of processed ITRs stands at 4,34,16,409.
Recently, the Central Board of Direct Taxes (CBDT) has informed that the Income Tax Returns (ITR) filing has witnessed a record growth of 16.1% year on year. According to the department, a significant number of taxpayers performed their necessary checks by cross-referencing data from their financial transactions through the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS).
Fake ITR Refund Messages
The government has alerted the public to remain vigilant regarding fraudulent refund messages. People are advised not to click on any links within these messages or disclose their bank details, OTPs, or other sensitive credentials. The fraudulent message requests you to provide your bank details, passwords, or OTPs, alleging to be from the Income Tax Department.
The message tricks you into believing that the income tax refund has been processed and credited to your bank account, but the account number provided might be incorrect. Subsequently, you will be asked to update the correct bank details through a link provided. However, this link is designed to steal your identity.
Read More: Refund Scam: Govt warns Taxpayers not to Fall for Fake Income Tax Refund Message; Could be a Scam
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
