Filing your Income Tax Return (ITR) is an essential annual task for every taxpayer including residents, Non-Resident Indians (NRIs), or Overseas Citizens of India (OCIs). Once you’ve filed your ITR, the next step is often eagerly awaited: the refund. The income tax department says it can take between 15-45 days to process an income tax refund from the date of e-verification of the ITR. For cases of offline verification of ITR, the timeline is extended further. We here take a look at the timeline for income tax refunds, what to do if your ITR is not processed, and why there might be delays in this blog.
How to know if your ITR is filed?
Ensuring that your ITR is filed correctly is the first step towards getting your refund. Here are some ways to confirm your ITR is filed:
- Acknowledgment Receipt: After filing your ITR, you will receive an acknowledgment receipt from the Income Tax Department. This receipt confirms that your ITR has been submitted successfully.
- Email Confirmation: You will also receive an email from the Income Tax Department confirming the successful submission of your ITR.
- ITR Status Check: You can check the status of your ITR on the Income Tax Department’s e-filing website. Log in with your credentials, navigate to ‘View Returns/Forms’, and select the relevant assessment year to see the status.
Also read: ITR Filing for NRIs AY 2024-25: Step-by-Step ITR Filing Process
What to do if ITR is not processed?
If your ITR is not processed within a reasonable time frame, you can take the following steps:
- Check for Errors: Ensure there are no errors or discrepancies in your ITR. Common errors include incorrect bank details, mismatched TDS figures, and unverified ITR-V.
- Submit ITR-V: If you filed your ITR offline, ensure that you have sent the signed ITR-V form to the Centralized Processing Centre (CPC) within 120 days of e-filing.
- Rectification Request: If there is an error in your ITR, you can file a rectification request through the e-filing portal.
- Contact CPC: You can contact the CPC to inquire about the status of your ITR processing. Have your acknowledgment number ready for reference.
Also read: What is Sec 87A of the Income Tax Act? Can NRIs avail it?
How long does it take for Income Tax Refund to be processed?
The processing time for an income tax refund can vary based on several factors. Generally, it takes between 20 to 45 days from the date of e-verification or submission of the ITR-V. Here’s a breakdown of the typical timeline:
- E-filing Date: The countdown begins from the date you e-file your ITR.
- E-verification: If you e-verify your return using Aadhaar OTP, EVC, or net banking, processing starts immediately. If you choose to send the ITR-V physically, the processing starts after the CPC receives and verifies it.
- Processing: The Income Tax Department processes your ITR and determines the refund amount.
- Refund Issuance: Once processed, the refund is issued directly to your bank account via NEFT or ECS.
Also read: NRI Income Tax Slab Rates for FY 2023-24 (AY 2024-25)
Why does ITR processing take time?
Several factors can cause delays in ITR processing. Here are the major reasons for it:
- High Volume: During peak filing season, the volume of returns submitted can be very high, causing delays.
- Discrepancies: Any discrepancies or mismatches between the information provided in your ITR and the information available with the Income Tax Department can lead to delays.
- Manual Verification: In some cases, the returns may be selected for manual verification, which can take additional time.
- Incomplete Information: Incomplete or incorrect information in your ITR can also lead to delays in processing.
Also read: New Rules for NRI Taxation in India FY-2023-24
Intimations sent to the users after successful ITR Filing
Once your ITR is successfully processed, you will receive the following intimations from the Income Tax Department:
- Intimation under Section 143(1): This is a summary of your ITR, including details of any discrepancies found and the refund amount determined by the department.
- Refund Processing: An email and SMS notification will be sent once the refund is credited to your bank account.
Also read: New vs Old Tax Regime: Which is better for NRIs/OCIs
Due Date for ITR Filing
The due date for filing your ITR is typically July 31st of the assessment year. However, this date can be extended by the government. It’s important to file your ITR before the due date to avoid penalties and interest on any unpaid taxes.
Also read: Penalty for Non-filing of ITR by Due Date: Know all the Rules
Wrapping Up
Understanding the timeline and process for income tax refunds can help you manage your finances better and reduce any anxiety related to the refund. Ensure your ITR is accurate and complete, and promptly follow up on any discrepancies to expedite the process.
Also read: 5 Tips for NRIs Filing Income Tax Returns in India
Calculate your TDS Refund with SBNRI’s TDS Refund Calculator
A TDS refund is the process of reclaiming the excess tax deducted at source by the payer if the actual tax liability of the taxpayer is lower than the TDS deducted. This situation typically arises when the income tax calculated on the total income is less than the TDS already deducted. To claim a TDS refund, taxpayers need to file an income tax return (ITR). The Income Tax Department processes the ITR and verifies the details. If the tax department finds that the TDS paid is more than the actual tax liability, the excess amount is refunded to the taxpayer.
You can easily find out how much tax refund you can get by calculating your TDS Refund from this TDS Refund Calculator.
Access SBNRI’s Exclusive NRI Taxation Guide
NRIs and OCIs can now access SBNRI’s exclusive NRI Taxation Guide covering in-depth information about DTAA, Gift Tax, Rental Income Tax, ITR Filing, Types of ITR Forms for NRIs, Capital Gain Tax, Income Tax, and more. The report will help you understand India taxation on mutual funds, other asset classes and how you can comply with the regulations.
Access NRI Taxation Guide here
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FAQs
How can I check the status of my income tax refund?
You can check your refund status by logging into the Income Tax e-filing portal, selecting ‘e-File’, ‘Income Tax Returns’, and then ‘View Filed Returns’.
What should I do if my income tax refund is delayed?
If your refund is delayed, verify your bank account details and ensure your return has been processed. You can also check for any mismatches in your Form 26AS, AIS, and TIS.
How long does it take to receive an income tax refund?
Typically, it takes about 20-45 days from the date of e-verification of the return to receive a refund if filed electronically.
What are the common reasons for delay in income tax refunds?
Common reasons include mismatches in tax forms, errors in bank details, or discrepancies in reported income.
How can I maximize my income tax refund?
Choose the correct ITR form, file on time, and claim all eligible deductions under sections like 80C, 80D, and 24(b). Ensure that all the necessary documents are collected and matched with your tax forms.
What notifications will I receive regarding my income tax refund?
You will receive an intimation under Section 143(1) via email once your ITR is processed.
