Income tax refund: How long does it take to get it?

The deadline for filing an Income Tax Return (ITR) ended on July 31, 2023, for FY 2022-23 (AY 2023-24). Those who filed their ITRs at the last minute and have an income tax refund due must be wondering how long it will take for the income tax refund to be deposited into their bank accounts.

Suresh Surana, founder of RSM India, an accounting and tax consultancy firm says: “Once ITR is e-verified by the taxpayer, the tax department would initiate processing of tax return. Once 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 taxpayers. It is seen that in some cases, the tax return is processed within 7 to 8 days after filing the tax return.

It is important to note that your income tax refund will only be issued to you after the ITR has been processed by the Income Tax Department. Notice under section 143 (1) of the Income Tax Act 1961 will be sent to your registered email ID as well as to your e-filing account on the Income Tax Portal. The notice will inform the individual whether their tax calculations match that of the tax department. If there is no discrepancy between the two, the person will inform the individual if the tax refund is due and how much it is. One must read the intimation notice carefully.

“If the tax refund has not been received within this period, the taxpayer must check for intimation notice regarding discrepancies in the ITR, and check the email for any notification from the Income Tax Department regarding the tax refund,” says Surana. Taxpayers can also check the status on the e-filing portal."

How long does it take for ITR to process?

Income tax laws have defined the time period in which the Income Tax Department is required to process the ITR. According to income tax laws, the notice must be issued within 9 months of the end of the financial year in which the ITR was filed. From 1 April 2021, the time required to process the ITRs and issue a Notice has been reduced by three months.

Therefore, for ITRs filed for  FY 2021-22 (AY 2022-23), the notice must be issued on or before December 31, 2023. For ITRs filed FY 2022-23 (AY 2023-24), the tax department should Notice on or before December 31, 2024.

If your ITR has not been processed by the due date, you can raise a grievance to the Income Tax Department.

How to submit a grievance on the income tax portal

If your income tax return is not processed or if your income tax refund is not issued to you after it is processed, you can file a grievance on the e-filing portal. Simply log in to your account on the income tax portal to access the grievance section.

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