12-Hour Income Tax Refunds: Record ITR Filings Slash Processing Time

12-hour-income-tax-refunds-record-itr-filings-slash-processing-time

Processing of income tax refunds is now completed quickly. But at what rate? Many taxpayers who submitted returns in July got their refunds within a few days, in contrast to the many weeks that taxpayers who filed returns for AY 2023–24 had to wait for the processing of their refunds. 

Nirnay Kapoor, a journalist by trade, posted images of his ITR filing and refund deposit notifications on Twitter and said that he had never seen a refund process so quickly.

He submitted his tax return in the morning of July 27 and learned of the refund deposit in the late afternoon of the same day.

Nirmala Sitharaman, the finance minister, said earlier this month that tax-filing changes have sped up the filing and processing of income tax returns. In comparison to last year, she said there had been a 100% increase in the overall proportion of ITRs handled within a day of submitting.

Improved System Means Smooth Refund Processing

12-hour-income-tax-refunds-record-itr-filings-slash-processing-time
Processing of income tax refunds is now completed quickly. But at what rate? Many taxpayers who submitted returns in July got their refunds within a few days, in contrast to the many weeks that taxpayers who filed returns for AY 2023–24 had to wait for the processing of their refunds.

According to tax professionals, because the system has improved, return filers shouldn’t be concerned about refund processing.

To prevent last-minute filing problems and to be eligible for early refunds, taxpayers should instead aim to submit their forms as early as possible.

There is also a little-known benefit to submitting ITRs early. When a taxpayer submits an ITR before the deadline, the Income Tax Department adds 0.5% interest each month to the refund. Beginning on April 1 and ending on the return date, this interest is computed.

The ITR filing date for taxpayers whose accounts do not need an audit is July 31. As of July 27, taxpayers have already filed more than 5 crore returns. Additionally, the Income Tax Department has already processed almost 2.69 crore verified ITRs.

Source: www.financialexpress.com

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