The Income Tax Department has not extended the deadline for filing Income Tax Returns (ITR) for Assessment Year 2024-25 beyond July 31. Interestingly, the returns of taxpayers who filed their tax returns 11 hours before the deadline were processed quickly and they also received ITR refunds. At the same time, some taxpayers who filed their tax returns much before the deadline are still waiting for their refunds. In some cases, refunds came within 24 hours after filing ITR. At the same time, a large number of taxpayers are waiting for more than a month for the Income Tax Department to process their refunds.
Taxpayers who have not yet received their ITR refunds may be wondering why their ITRs have not been processed despite filing returns well before the deadline. Usually, the Income Tax Department issues tax refunds within a certain time frame, but a number of factors can account for the delay in refunds. Understanding these reasons and knowing how long the department can legally take to issue refunds can help reduce your frustration.
There are many factors responsible for delay in ITR processing. One of them is which form the taxpayer has filled for return filing.
Akhil Chandna, partner, Grant Thornton India, explains that forms like ITR-1 (Sahaj) or ITR-4 are usually processed in less time as compared to ITR-2 or ITR-3 forms. Apart from this, the Income Tax Department may adopt a stricter check and balance approach in the processing of tax returns that have higher refund claims.
Chandana says that in case of any discrepancy in the data given in the tax return, such as non-matching of income or tax credit, the Income Tax Department can ask the taxpayer for the necessary documents through post for reverification. Understanding these factors can help taxpayers manage their expectations. After knowing the reason, taxpayers who have been waiting for ITR refund for a long time can prepare themselves for possible delays.
The official statutory timeline for processing ITRs filed for assessment year 2024-25 is 31 December 2025. However, technological improvements in recent years have accelerated the processing of tax returns.
