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ITR FY2025-26: According to the Income Tax Department’s website, refunds usually take around 4-5 weeks, but the actual turnaround time is now often much shorter
Tax professionals noted that several of their clients received refunds on the same day they filed their ITR. (AI Generated)
The process of receiving income tax refunds has become significantly quicker in the country. Previously, it could take over 90 days for taxpayers to receive their refunds. Now, many are reporting that refunds are being credited within just a few hours of filing their Income Tax Returns (ITR).
The Income Tax Department has set September 15 as the last date for filing returns for the assessment year 2025-26.
Refunds Issued Within Hours
According to a report by Financial Express, Arun Prakash, a media professional from Noida, shared that he filed his return using the ITR-1 form at 5:03 pm and received the refund in his bank account by 9:02 pm the same evening. He even shared screenshots of the filing confirmation and refund credit to support his claim.
This marks a significant shift from previous years when refunds often took several months to process. The Income Tax Department’s improved digital infrastructure has drastically reduced this waiting time.
Experts Highlight Same-Day Refunds
Tax professionals echo this experience. Deepak Verma, a tax expert, stated that several of his clients received their refunds on the same day they filed their returns. While it is unclear if this applies to every taxpayer, the trend clearly reflects the department’s increasing efficiency.
Previously, refunds typically took almost 90 days. According to the department’s website, refunds usually take around 4-5 weeks, but the actual turnaround time is now often much shorter.
From 93 Days to 10 Days
Finance Minister Nirmala Sitharaman informed Parliament last year that the average refund time in 2013-14 was 93 days. By 2023-24, it had come down to just 10 days. This improvement not only offers relief to taxpayers but also reflects the government’s push towards digital governance and transparency.
The accelerated refund process is made possible by a fully digital tax system. The department now uses the faster JSON format instead of the older Excel-based filing. Once a return is e-verified, refund processing begins immediately. Verified bank accounts and PAN-Aadhaar linking help ensure that refunds are credited securely and accurately.
The system also cross-verifies data provided in returns with third-party sources like the Annual Information Statement (AIS) and Form 26AS. If discrepancies or inflated refund claims are detected, the process may be delayed.
Tips for Taxpayers
If a taxpayer has pending dues or assessments from previous years, their refund may be withheld. To ensure a smooth process, taxpayers are advised to:
- File accurate returns on time
- Ensure bank details are up to date
- Complete e-verification promptly
- Check refund status on the Income Tax portal if delays occur
This new level of efficiency in refund processing is a welcome move and a clear indicator of the digital strides taken by the Income Tax Department.
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