How Soon Will My Tax Refund Arrive After I File My ITR?

Tax Deducted at Source (TDS) is the sum that is deducted from a taxpayer’s income, like salary, interest from bank accounts, rent, etc. However, it has been observed that many times the system makes an error and charges much more TDS than the actual amount. If the TDS collected is more than what you owe to the government, you can apply to get a Tax Deducted at Source Refund.

To make the claiming of a refund easier and convenient for the taxpayers, the Income Tax Department provides an online facility for tracking your ITR refund status. Individuals filing an Income Tax Return (ITR) with hopes of receiving a refund should have an in-depth knowledge of how this process works.

Read the article to learn more about the Income Tax Return refund, ranging from the claim process to answers to popular questions like, ‘Return processing is in progress for long time, when will I get a refund?’ or ‘ITR processed at CPC when will I get refund?’.

In How Many Days Tax Refund Will Be Credited?

An income tax refund is paid by the income tax department when a taxpayer has overpaid tax through various channels such as advance tax, TDS/TCS collection/collection or self-assessment. As part of their assessment of taxpayer tax liabilities, income tax departments carefully factor in any applicable deductions or exemptions before reaching a final calculation for your taxes due.

Refund processing begins once taxpayers have electronically verified their return with the tax department; typically, this takes four or five weeks until their refund arrives in their accounts. An income tax refund above 50,000 is usually credited after a thorough check is completed.

The Income Tax Department implemented a new refund processing system to enable faster refund processing with an expected turnaround of a few days instead of a few months. Consistent with this objective, the average ITR processing duration has been reduced to 10 days for returns submitted in the FY 2023-24, as opposed to 82 days for returns submitted in the AY 2019-20 and 16 days for returns submitted in AY 2022-23.

Read More: No Need To Share Your Password To File ITR From Now

Interest On TDS Refund

If the Income Tax department is not giving you the TDS refund in the manner that is applicable, the tax department must pay the amount at an interest of 0.5 per cent per month or a portion of the month (i.e., per cent per year). This is a provision of Section 244A in the Income Tax Act. The interest accrues from the beginning of the assessment year if the Income Tax Return is filed by the due date and from the filing date of the returns in any other circumstance. 

No refund will be granted if the refund amount is less than 10 per cent of the tax to be paid, or if the refund amount is not more than Rs 100 and there is no refund. Furthermore, the interest earned is taxable under the heading ‘income from other sources’.

Conclusion

The Income Tax Department has made the process of claiming not only digital but also extremely easy to understand and convenient for the taxpayers. The system first thoroughly verifies the details of the taxpayer and then processes the refunds within a couple of weeks. People need to ensure that their personal information, like PAN, Aadhaar, and bank details, are correct to avoid unnecessary delays and rejections.

Timing is crucial when it comes to doing any tax-related work. Filing an ITR was due by 31st July 2024 for non-audit cases; if you were unable to file before then, late filing (known as belated returns) remains possible until 31 December 2024; using this route, you can claim any tax refunds due.

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