The average time taken to process income tax returns (ITR) has decreased from 93 days in 2013 to 10 days.
Finance minister Nirmala Sitharaman said that the average time taken to process income tax returns (ITR) has decreased from 93 days in 2013 to 10 days. Will this mean that taxpayers can expect faster tax refunds now?
Finance minister said that the ‘average’ processing time has been reduced to 10 days.
No, not all ITRs are going to be processed in 10 days as the Finance minister said that the ‘average’ processing time has been reduced to 10 days which does not mean that all types of ITRs will get processed in 10 days. The higher the complications of an ITR form, the higher the time it takes to process it.
What changes has the tax department introduced to facilitate faster processing of tax refunds?
Since 2013, the ITR processing software and backend systems have undergone significant improvements. This have helped in processing tax refunds faster. These changes include:
1. Aadhaar-Based verification: Introduction of Aadhaar-based e-verification allows taxpayers to instantly verify their returns without needing to send a hardcopy acknowledgment.
2. New tax filing portal: The launch of the new tax e-filing portal in 2021 with a user-friendly interface has made tax filing, grievance redressal and request submissions easier and faster.
3. Automation and digitisation: Increase in automation and digitisation of the filing process have played a major role in reducing errors and therefore speeding up processing.
4. Centralised processing and automation: The integration of more automated systems and centralised processing has made the entire process quicker and easier.
News/Business/ Taxpayers alert! ITR processing time reduced to 10 days from 93 days
