How long does it take to receive an ITR refund?

Taxpayers must ensure that they file their income tax returns (ITR) before the deadline, which will enable them to get a tax refund if they have paid excess tax. The tax refund is deposited into the assessee’s bank account. The process of filing an ITR and getting a refund has been made seamless through the official e-filing portal of the Income Tax (I-T) department. This article aims to help taxpayers to understand the ITR refund process and know how long it takes to get an ITR refund.

ITR refund timelines and factors to consider

ITR verification

The ITR refund is processed once the ITR verification process is done after the assessee files their tax returns. The I-T department will process the refund if there are no discrepancies. The time taken for the process may depend on the complexity of the ITR and the volume of ITRs being processed by the department.

Taxpayers can get their ITRs verified either online using an Aadhaar OTP or by mailing a signed copy of ITR-V to the Centralised Processing Centre in Bengaluru. Refund is processed after successful verification while delays in the verification process can lead to cause delays in getting a refund.

Accuracy or completeness of details

Taxpayers must ensure there are no inaccuracies or discrepancies when filing their ITRs. Otherwise, it can cause delays in getting a refund. This relates to reporting one’s income correction, including deductions and taxes paid. One should also check if the bank account information provided to the tax department is updated. If one has multiple bank accounts, it is crucial to select the account where one wants to receive the refund amount.

Mode of filing ITR

Taxpayers are required to file their returns online through the official website in paper format. Compared to the physical paperwork for filing ITRs, which is allowed in certain cases for very senior citizens, the e-filing of tax returns minimises errors and ensures faster refund processing.

How long does it take to get an income tax refund?

Once all the conditions are fulfilled and after ITR has been verified and processed, the taxpayer can get the income tax refund within 20 to 45 days from the date the e-filing of the returns. The tax department will send an email to the taxpayer once the refund has been processed.

How is income tax refund processed?

An income tax refund is calculated after taking the deductions and exemptions into consideration. If the total tax paid for the year, which includes advance taxes, TDS (tax deducted at source), TCS (tax collected at source) and self-assessment tax is more than the tax liability for the year, the individual can claim an ITR refund.

Income tax refund = Total tax paid – total tax payable

The authorities at the Centralised Processing Centre (CPC) in Bangalore are responsible for processing the income tax refund. When tax reimbursement arises while processing the returns, the income tax refund banker receives the orders for a refund and the amount is deposited into the taxpayer’s bank account through NECS/RTGS or cheque.

Taxpayers can check the status of their income tax refund on the official e-filing portal.

See also: Refund status of income tax: A guide to checking income tax refund status