Income Tax Refund Time 2023: I got my refund in 26 days. How long it may take for you?

Income Tax Refund issue time/timeline AY 2023-24: Many taxpayers, who have already filed their returns, are wondering when would they get their refunds (if any) from the Income Tax Department. Some have also been asking this question to the Income Tax Department on social media.

The tax-filing system has become faster than it was a few years back. It now just takes a few weeks for the complete processing of returns and issuance of refunds.

In my case, I got the refund in 26 days and much before the due date, i.e. July 31, 2023. I filed ITR on June 19 on the e-filing website of the Income Tax Department and got the message “You have a refund for AY 2023-24” on July 15, 2023.

After processing the Income Tax Return filed by an assessee, taxmen send an email intimation under Section 143(1) with details of refunds (if any). The intimation may also inform you about errors or omissions in your ITR and raise tax demand. According to Cleartax, a taxpayer generally receives an intimation under Section 143 (1) in the following cases:

• In case the taxpayer has paid excess then the intimation mentions a tax refund (like in my case where the message said ‘You have a tax refund’. The refund is initiated only when the amount is more than Rs 100.

• In case the taxpayer has paid less tax in the relevant financial year. In this case, the intimation mentions the amount and a challan to make the payment.
• The intimation can also be in the form of a simple acknowledgement in case the ITR filed is consistent according to the Assessing Office.

Note: In case you have received a notice for further tax payment, you should either pay it (if you deem the demand to be correct) or consult a tax filing expert or tax-filing websites, who will guide you in properly responding to the mail, or even contesting the tax demand claim (if possible).

Also Read: ITR due date extension latest news on July 18

When you may get Income Tax Refund

As of now, taxpayers should not worry about when they will receive refunds. Instead, you should try to file an error-free return at the earliest.

Experts say it is difficult to predict the exact time by which you will get refunds. It may take 10 to 30 days, or even longer, on case to case basis. However, it is a fact that early filers usually get their refunds early if they have correctly filed their returns.

According to Archit Gupta, CEO of Cleartax, an online tax-filing platform, ITR processing takes more time when filed during the last few days before the due date. Therefore, it is always better to file returns at the earliest if you want to receive your refunds early. (Read more details here)

Recently, Finance Minister Nirmala Sitharaman also said that Income Tax Return processing time has been reduced in the last few years. She said there has been a 100% increase in the total percentage of ITRs processed within one day of filing compared to the previous year.