Waiting for ITR refund? Here's how long it could take
What's the story
After filing their Income Tax Returns (ITR) by the extended deadline of September 16, taxpayers are now eagerly waiting for their refunds. The refund process starts after the successful e-verification of the ITR. In many simple cases, taxpayers receive their refunds within a few days or even on the same day in some cases where the amount is small.
Refund process
On average, refunds are credited within 4 to 5 weeks
On average, refunds are credited within four to five weeks of filing. Tax experts say this depends on the internal checks done by the Income Tax Department under Section 143(1). Smaller refunds are usually processed faster while larger or more complex cases may take longer. This year, new checks on deductions and exemptions could also delay refunds for those who have claimed them.
Delay reasons
Refunds can be delayed if there are complications in return
Refunds can be delayed if there are complications in the return, like capital gains or business income. In such cases, the department may cross-check information before issuing the refund. If discrepancies are found, taxpayers could receive communication from the department and have to respond quickly. Experts say while some refunds are credited within a week, others could take close to a month especially when many returns are pending.
Refund limits
No limit on refund amount
There is no limit on the refund amount. You are entitled to receive the full excess tax paid, whether through TDS, advance tax or self-assessment. If your ITR has been correctly filed and verified, you can expect a refund within a few days or weeks. And if it takes longer, remember that the Income Tax Department also pays interest at 6% per year for delays starting from April 1 of the assessment year.