The tax department is on a mission to speed up tax refund processing and cut the wait time from 16 days to 10.
Officials aim to make this change effective in the current financial year.
Incredibly, the goal is to eventually reduce the refund time to a mere 24 hours.
Until now, it usually took around 16 to 17 days to process tax returns during the 2022-23 financial year, and even longer at 26 days in the previous fiscal year, 2021-22.
However, officials are striving to bring this down to 10 days while ensuring swift refunds.
Impressively, between April 1 and August 21 of this financial year, refunds totaling Rs 72,215 crore have already been issued.
This includes Rs 37,775 crore for corporate taxpayers and Rs 34,406 crore for individual taxpayers.
After these refunds, direct tax collection has reached Rs 5.88 lakh crore.
An official emphasized that based on current trends, they anticipate further improvements in processing times throughout the financial year.
This, in turn, will lead to quicker issuance of refunds.
The official also highlighted that the majority of scrutiny and assessment procedures are now conducted electronically, eliminating the need for in-person interactions between taxpayers and tax officials.
Aiming for Instant Refunds in 24 Hours
The department is even exploring the possibility of upgrading its systems to achieve refunds within a remarkable 24-hour timeframe.
While the goal might seem ambitious, the official insists it’s achievable.
In fact, refunds have already been issued in just 3 to 4 working days for around 10 to 12 percent of return cases.
The expectation is that such efficiency will soon become the standard practice in the coming years.
Checking Your Refund Status – Simple Steps
Step 1: Log in to the Income Tax Portal using your user ID and password.
Step 2: Navigate to ‘My Account’ and select ‘Refund/Demand Status’.
Step 3: All relevant information will be displayed. If the refund hasn’t been processed yet, you can find details under the ‘Reason’ section.
