Filing your Income Tax Return (ITR) becomes obligatory if your income exceeds the predefined threshold. Thanks to modern digital solutions, ITR filing and getting refunds have become more straightforward. Nevertheless, it’s crucial to understand the necessary steps involved.
By 31st July 2023, taxpayers must file their Income Tax Returns for the Financial Year 2022-23 (Assessment Year 2023-24) to avoid late fees. As the deadline is drawing near, it’s essential for all taxpayers to prepare their documents and calculate their tax liabilities and potential refunds ahead of time. Being well-prepared will help ensure a smooth and timely filing process.
Once taxpayers eligible to claim exemptions and deductions under the Income Tax Act 1961 file their ITR, they can receive a refund for the TDS. This refund is provided as per the applicable rules and regulations, and it’s a way to ensure that individuals receive the correct amount of tax benefit they are entitled to based on their deductions and exemptions.
Here are all the details you should know about how long it usually takes to receive a refund after filing your ITR and other important factors to keep in mind while claiming a refund.
Income Tax Return filing
Under the new tax regime, individuals with an annual income exceeding Rs 3 lakh must file an income tax return. Under the old tax regime, individuals with an annual income exceeding Rs 2.5 lakh must file an income tax return. This submission provides a comprehensive overview of your income from different sources, along with details of tax deductions and potential tax obligations. Based on this information, the amount of tax you owe or the refund you may receive is determined. If the total tax amount you have already paid through TDS (Tax Deducted at Source), TCS (Tax Collected at Source), advance tax, and self-assessment tax is more than your actual tax liability, you could be eligible for a refund.
How to track refund status online?
After filing your ITR, it’s easy to keep track of your refund status using the Income Tax Department’s e-filing website. Enter your ITR Acknowledgement Number and mobile number, and confirm your identity through an OTP (One-Time Password). Once authenticated, you can conveniently monitor the status of your refund and stay informed about its progress. This process allows you to stay updated on when you can expect to receive your refund.
How to secure a speedy refund?
The question ‘How long will it take to receive my refund?’ is a common concern among taxpayers. While no specific timeframe is set, refunds are typically issued within a week to 10 days after filing. However, the processing speed can be influenced by factors such as the timing of your filing and the accuracy of the information provided in your return. Being prompt with your filing and ensuring the correctness of your data can contribute to a faster refund process.
This year, however, the Income Tax Department has cautioned that predicting the processing time for refunds could be difficult due to the anticipated rush before the July 31 deadline.
As of July 9, 2023, the department processed 1.89 crore ITRs, verified 1.74 crore returns, and completed processing 46 lakh of these verified returns. To speed up your refund process, consider filing your returns early instead of waiting until the deadline. Early filers generally receive their refunds faster.
Important factors that could impact refund
Being aware of common errors and issues that may delay your refund is crucial. For example, providing incorrect bank account information or discrepancies between your bank account details and the ITR can cause delays. Moreover, if your return raises suspicions of fraud, the refund might be put on hold until the matter is resolved. Therefore, it’s vital to double-check your information and be thorough in your ITR filing to ensure a smooth refund process.
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