The deadline for filing Income Tax Returns (ITRs) is rapidly approaching, with only two days remaining. If you are new to filing your ITR or are doing it for the first time, it’s essential to complete the process by July 31, 2024. Most importantly, the Income Tax portal may experience high traffic as the deadline nears, making it challenging for taxpayers to file their returns at the last minute.
Last year, a total of 8.14 crore ITRs were filed, and this number is expected to rise further in AY 2024-25. The rise in filings indicates that more Indian taxpayers are becoming aware of the need to comply with tax laws and that more people are making more money than the basic exemption threshold.
Individuals who have submitted their ITRs are now waiting to receive their tax refunds. Waiting for tax refunds is a common experience for a lot of taxpayers. As more people file their taxes, it makes sense that taxpayers would be looking forward to receiving their refunds.
What is the duration for processing ITRs and receiving refunds?
When it comes to improving ITR processing times, the Income Tax Department has made significant strides. The processing time has been greatly accelerated by the automation of routine tasks, and advanced data analytics enable faster verification of tax returns. The majority of taxpayers can now anticipate receiving their refunds far faster than in prior years, largely due to technological advancements and more efficient procedures. While the majority of taxpayers will receive their refunds promptly, it’s crucial to be mindful of possible delays brought on by things like complicated returns or disparities in the data submitted.
Why isn’t the stipulated period for refund receipt fixed?
Concerns regarding the unpredictable ITR processing times and refund disbursements for the Assessment Year 2024–2025 have been voiced by numerous taxpayers. Various factors contribute to this uncertainty:
- Increased base of taxpayers: The processing capacity of the Income Tax Department is strained by the growing number of taxpayers.
- Intricate tax laws: Complex tax laws could need manual verification, which would cause delays.
- System improvements: Processing speeds may momentarily lag due to routine department system updates and upgrades.
- Data correspondence and validation: Processing times may increase as a result of meticulous checks to thwart fraudulent claims.
This unpredictability makes it difficult for people to plan and handle their money. Refunds that are delayed can mess with cash flow and make budgeting more difficult. Furthermore, decisions about investments may be impacted by uncertainty regarding the availability of refunds. Tax planning is further complicated by changing tax laws and erratic processing times.
How to ensure a timely refund receipt?
Take into account the following tactics to handle the situation while we wait for enhancements to the processing system:
- Accurate and complete returns: To lessen the possibility of scrutiny, make sure your ITR is error-free.
- E-verification: To expedite processing, use e-verification.
- Track refund status: Check the Income Tax portal frequently to see how your refund is progressing.
- Emergency funds: Maintain a sufficient emergency fund to cover unforeseen costs.
- Expert advice: For complicated tax matters, consult a tax specialist.
Refund processing has undoubtedly accelerated in recent years. Refunds are generally trending faster, though delays still occur, especially during busy filing periods.
