New Delhi :
In a major development for taxpayers, the Income Tax Department has announced a significant reduction in the time taken to issue income tax refunds.
The Central Board of Direct Taxes (CBDT) Chairman, Nitin Gupta, revealed that refunds will now be processed within a remarkable 16-day timeframe.
The use of advanced technology has played a vital role in expediting the income tax return process and promoting an “ease of doing business” for taxpayers.
Gupta highlighted the swift progress made in the refund process,
with an impressive 80% of refunds issued within the first 30 days of filing returns during the last financial year, 2022-23.
This represents a substantial improvement compared to the previous year, where refunds took an average of 26 days.
During an online ‘Samvad’ session organized by the Income Tax Department, Gupta emphasized the significant increase in processing returns within a day of filing the Income Tax Return (ITR).
The department achieved a notable jump from 21% in 2021-22 to an impressive 42% in 2022-23.
Technological advancements have played a pivotal role in enhancing the department’s efficiency.
Gupta shared that the department achieved a record-breaking milestone of processing 22.94 lakh returns in a single day on July 28, 2022.
To promote voluntary compliance and reduce legal disputes, taxpayers can file an updated return (ITR-U) on the e-filing portal within two years after the end of the relevant assessment year.
Furthermore, Gupta disclosed that until March 31, 2023, over 24.50 lakh updated returns have been filed,
resulting in an additional tax collection of approximately Rs 2,480 crore.
Emphasizing the success of the “faceless” system, he highlighted that more than four lakh assessments were completed without any direct interaction between the officer and the taxpayer.
Moreover, there has been a significant 60% reduction in complaints related to the “faceless” process in 2022-23 compared to the previous year.
Under the “faceless” system, tax officials have successfully resolved over one lakh appeals, streamlining the process and ensuring efficiency.
The government’s focus on leveraging technology and implementing streamlined processes has not only reduced the burden on taxpayers but also enhanced the overall tax compliance ecosystem, making it more user-friendly and efficient.
