Understanding the Timeline: How Much Time Does It Take to Get Your Income Tax Refund?

The deadline for filing income tax returns (ITRs) for the fiscal year 2022-23 (assessment year 2023-24) came to a close on July 31, 2023. For those who submitted their ITRs at the eleventh hour and are now anticipating an income tax refund , the question arises: How long does it take for the refund to be deposited into their bank accounts ?

Suresh Surana , the Founder of RSM India , a prominent accounting and tax consulting firm, sheds light on the timeline, stating, "Once the ITR is e-verified by the taxpayer, the tax department would initiate processing of tax return. After the tax return is processed, it usually takes an average of 4-5 weeks for the tax refund to be credited to the bank account of the taxpayer. Also, it is seen that in some cases, the tax refund has been processed within 7-8 days of filing the tax return."

It's essential to note that the income tax refund is disbursed only after the income tax department completes the processing of the ITR. A notice under Section 143(1) of the Income Tax Act , 1961, is dispatched to the taxpayer's registered email ID and their e-filing account on the income tax portal . This notice outlines whether the individual's tax calculations align with those of the tax department. If there are no discrepancies, the notice will confirm whether a tax refund is due and specify the amount. Thoroughly reviewing this intimation notice is crucial.

Surana advises, "If the tax refund is not received during this duration, the taxpayer must check for intimation notice regarding discrepancies in ITR, check email for any notification from the income tax department regarding the tax refund. The taxpayer can also check refund status on the e-filing portal."

Processing Duration for ITR: Taxpayer's Insights

The income tax laws stipulate the time frame within which the income tax department is mandated to process an ITR. According to these laws, a notice must be issued within 9 months from the conclusion of the financial year in which the ITR was filed. Effective from April 1, 2021, this time limit has been shortened by three months.

As a result, for ITRs submitted for the fiscal year 2021-22 (assessment year 2022-23), the intimation must be dispatched on or before December 31, 2023. For ITRs submitted for the fiscal year 2022-23 (assessment year 2023-24), the tax department should issue notices on or before December 31, 2024. If a taxpayer's ITR remains unprocessed by the stipulated date, they have the option to raise a grievance with the income tax department.

Guidelines for Registering a Grievance on the Income Tax Portal

In cases where income tax returns are not processed or where tax refunds are not disbursed even after processing, taxpayers have the avenue to raise grievances via the income tax e-filing portal. Accessing the grievance section is as simple as logging into one's account on the income tax portal.

The conclusion of the ITR filing period often marks the beginning of a new waiting game for taxpayers anticipating refunds. Understanding the timelines, procedures, and available recourse can significantly alleviate concerns regarding the processing of income tax refunds.