Refund processing time after filing
After you file your Income Tax Return (ITR), the time to receive your refund depends on a few key steps.
- Time frame: The Income Tax Department usually credits the refund to your bank account within 4 to 5 weeks of e-verification. In cases with no discrepancies and a pre-validated bank account, refunds may be processed even faster—sometimes within 7 to 20 days.
- Faster refunds: The department has introduced a faster processing system that can issue refunds in a few days, especially for taxpayers filing under the new regime with straightforward income.
- Start of the process: The refund process only begins once your ITR has been successfully e-verified.
Maximum time limit to claim an old refund
If you missed the deadline for a prior year’s tax return, you still have some options.
- Original/Belated Return (Up to 31st December): You can claim a refund by filing a belated return up to December 31st of the relevant assessment year, though this may incur a late filing fee.
- Updated Return (ITR-U): If you miss the belated return deadline, you cannot claim a refund by filing an updated return (ITR-U). However, an ITR-U is a way to correct errors or declare additional income and must be filed within 48 months (4 years) from the end of the relevant Assessment Year.
- Application for Condonation of Delay: The Central Board of Direct Taxes (CBDT) may accept a delayed refund claim under specific circumstances, such as genuine hardship, for up to six successive assessment years. However, interest is not paid on refunds in these cases
Common causes for refund delays
If your refund is delayed, it could be due to one of these common issues:
- Late verification: The refund will not be processed if you do not e-verify your return within 30 days of filing.
- Incorrect bank details: Errors in your bank account number, IFSC code, or a non-pre-validated bank account can cause the refund to fail.
- Mismatch of information: Discrepancies between your income or TDS details and the tax department’s records will cause delays.
- Outstanding tax demand: The tax department may adjust your refund against any past tax dues.
- Processing during peak season: High volumes of returns filed close to deadlines can sometimes lead to longer processing times.