Average time taken for issuing I-T refunds reduced to 10 days in FY24: CBDT

The average time it takes to process income tax returns after the taxpayer has verified them has been reduced to 10 days, Central Board of Direct Taxes (CBDT), the administrative body for the tax department, said.

In a statement on Tuesday, CBDT stated that the tax department's efforts to deliver seamless and expedited taxpayer services are being continuously strengthened.

"In line with the same, the average processing time of income tax returns after verification has been reduced to 10 days for the returns filed for assessment year [AY] 2023-24 compared to 82 days for AY 2019-20 and 16 days for AY 2022-23," CBDT said.

The statement said that the Income Tax department is committed to processing tax returns (ITRs) quickly and efficiently.

"As on 5 September, 69.8 million income tax returns for AY 2023-24 were filed, out of which 68.4 million have been verified. More than 60 million tax returns of AY 2023-24 have been processed out of the verified tax returns as on 5 September, resulting in processing of over 88 per cent of the verified tax returns. More than 24.5 million refunds for the current assessment year have already been issued," the statement added.
 

CBDT also said that the department is unable to process certain types of tax returns due to lack of certain information or action from taxpayers.

CBDT said that about 1.4 million ITRs for AY 2023-24 are yet to be verified by the taxpayers as on Monday.

"Failure to verify the returns causes delays in processing as the return can only be taken up for processing once the verification has been completed by the taxpayer. Taxpayers are urged to complete the verification process immediately," CBDT said.

There are about 1.2 million verified ITRs in which further information has been sought by the Department. Taxpayers are requested to respond to such communication expeditiously, CBDT said.

There are several cases in which the ITRs have been processed and refunds have also been determined. However, the department is unable to issue them as taxpayers have not yet validated their bank account in which the refund is to be credited. Taxpayers are requested to validate their bank accounts through the e-filing portal.

"The department remains committed to speedy processing and expeditious issue of refunds and solicits the cooperation of the taxpayers," CBDT said.