Submitting an Income Tax Return (ITR) is a basic duty of a taxpayer, and this is helpful if it relates to ITR processing time because it allows the taxpayers to manage their expectations appropriately. This involves the Central Processing Centre (CPC) based in Bangalore which is in charge of validation and evaluation of the lodged ITRs. After the ITR is e-verified, it goes for further checking by the CPC to avoid any errors. After the completion, taxpayers are sent an intimation notice under section 143 (1) of the Income Tax Act which indicates the position of one's return whether it is a pay in additional tax due, one is expecting a refund, or no action is called for. Participating in the Assessment Year 2024-25 process will require a completion deadline that falls on July 31, 2024.

Therefore, this blog will help in understanding the various elements of the average time taken to process ITR, the factors influencing this and how to monitor and avoid bottlenecks in this process.

Read More: Received Intimation Notice Under Section 143(1)? Here is Everything You Need To Know!

What Is ITR Processing Time?

ITR processing time refers to the time taken by the Income Tax Department for the assessment and the completion of the verification process of your filed return. This is started when the ITR is completed successfully through e-verification.

Over the recent years, the government of India has been able to cut down the period in which an ITR is processed. For Assessment Year 2023-24, it is found that most returns get e-verified and processed hardly 10 days after e-verification, unlike in the years prior where it used to take an average of 82 days.

All the same, this time frame is true mainly for the returns which are being electronically verified. The physical verification using the ITR-V form could take a longer time in this regard.

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What Is The Average ITR Processing Time In India?

As of now, for the already completed financial year, the range of acceptance and processing of the full ITR period is from 15 to 45 days after e-verification. The number of days is inclusive of the year closing on the 31st of March 2022.

It should also be noted that the Income Tax Department has demonstrated considerable efficiency, as the average number of processing days for the returns filed for the year 2023-24, decreased when compared with previous years and averaged about 10 days. Such an improvement has been registered in times of processing previously when averages were 82 days in 2019 and 16 days in 2022.

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

Factors Affecting ITR Processing Time

The ITR processing time can depend on a multitude of factors. Here are some reasons why ITR processing might take 18-20 days:

• E-verification: Timely e-verification minimises the time taken to process the ITR. Other means such as the offline ITR-V method may overshoot the processing time.

• The complexity of ITR: It is easier to process ITR-1 as compared to ITR-3 which is comparatively complex and requires an in-depth examination of records.

• Discrepancies in ITR: An inconsistency between the figures declared regarding income or relative deductions taken may very well lead to second guess checks and consequently, delays in processing.

• Scrutiny Selection: In the course of processing some ITRs, certain cases are chosen randomly by the management team for a thorough evaluation, this alone can increase the time taken.

• CPC Workload: The turnaround time incurred in processing tax returns may be limited by the number of returns that the central processing centre (CPC) is attending to. During busy filing seasons, returns processing timelines tend to be longer.

Read More: Who is Responsible For Mistakes In ITR Filed By CA? Who Will Pay The Penalty? Here Is What The Government

What To Do If Your ITR Is Not Processed?

If your ITR is not processed within the expected time frame, don’t worry. Here’s what to do with the incidences when processing ITR takes a great deal of time:

• Lodge a Grievance: Use the “Grievance” tab on the e-filing portal to raise your concerns.

• Contact CPC: You can contact the Central Processing Centre by using their helpline numbers.

There can be considerable delays in the tax refund of the overpayments, but doing these things can make the procedure faster.

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How To Track Your ITR Processing Status

If you're concerned about your income tax return status and want to know the current stage of processing, here’s how to check your income tax return processing status online:

• Visit the Income Tax Department’s e-filing Portal: The first step is to go to the official e-filing website of the Income Tax Department.

• Login Using Your Credentials: On the e-Filing Home Page, registration is not a requirement to enter this part of the system. Use your PAN and password to log in.

• Go to the "e-File" Section: After you have successfully logged in to the system, click and go to the e-File section.

• Select “Income Tax Returns” and “View Filed Returns”: This section displays a complete overview of the returns that you have filed and their Registrar’s Office statuses.

• Click on “Processing Status”: This tab shows how far your ITR is in the process of being worked on.

Finding and using a taxpayer’s ITR acknowledgement number to track its status is very important. Acknowledgement number is filed on the ITR-V which the taxpayer is sent through email after an ITR is filed, and is downloadable from his or her e-filing portal.

Read More: Income Below Exemption Limit? Check If You Need To File ITR

What Are The Intimations Received After ITR Is Processed?

Once the Income Tax Department finishes its types of processing, the assessee shall receive an intimation notice under Section 143(1). This notice shall state the outcome of ITR processing. Such intimation can be divided into the following categories:

Intimation for Tax Demand:

• Where ITR and records (like Form 26AS) maintained by the Income Tax Department do not match, then an undue demand of tax will be made against the assessee for any unpaid tax amount. This could be a result of some miscalculations or of some disallowed expenses.

Intimation for Tax Refund:

• Where an individual reserves and files an ITR that indicates tax overpayment, funds will be issued a tax refund. As soon as the ITR is processed and it is established that there are no discrepancies, the refund will be swept into your bank account.

No Demand or Refund:

• Here, the Income Tax department finds no tax paid more than the tax due. You will not be subject to any new tax liability and there will be no obligation on the part of the department to refund anything.

Read More: Decoding Income Tax Act 1961 Section 44 AD! What You Need To Know?

Conclusion

One of the reasons that can relieve the burden of worry is to know the average time for ITR processing after e-verification as well as the procedures to follow in monitoring the status of your return. Most ITR processing times stay within the time range of 15 to 45 days. For that reason, it is important to keep an eye on the income tax return status of a person and act quickly in case of delays.

Do you have any questions about this insurance scheme or do you wish for us to cover some particular topic? Drop your comments on the Jagruk Bharat community page!

Important Links

Official Website: https://www.incometax.gov.in/iec/foportal/

Check ITR Status : https://eportal.incometax.gov.in/iec/foservices/#/login

Contact Information: https://www.incometax.gov.in/iec/foportal/contact-us