Income tax refunds now processed within hours

August 7, 2025 Finance Talk Valli Sarvani

The process of receiving income tax refunds in India has become significantly faster, thanks to advancements in the Income Tax Department’s digital systems.

What once took up to 90 days is now often completed within hours of filing an Income Tax Return (ITR).

Until recently, taxpayers typically had to wait weeks or even months for refunds. However, with recent improvements, many are now reporting refunds credited on the same day of filing.

This shift reflects a major boost in the department’s operational efficiency and digital capability.

The average refund processing time, which was 93 days in 2013–14, dropped to just 10 days in 2023–24.

Today, the turnaround time is often even shorter, depending on the accuracy of the filing and verification process.

One of the key drivers of this speed is the adoption of a fully digital, automated system. The department now uses the faster JSON format instead of the older Excel-based method.

As soon as a return is e-verified, refund processing begins automatically. The system also ensures secure and accurate credit of refunds through verified bank accounts and PAN-Aadhaar linking.

Tax professionals have also observed that several clients receive refunds within 24 hours of filing, especially when all details are correctly submitted and there are no outstanding tax dues.

The system cross-verifies data from ITRs with third-party sources such as the Annual Information Statement (AIS) and Form 26AS.

If there are mismatches or inflated claims, the refund may be delayed until the issue is resolved.

Taxpayers can ensure quicker refunds by:

Filing accurate returns well before the deadline
Verifying bank account details
Completing e-verification immediately after filing
Checking the refund status regularly on the Income Tax portal

The last date for filing returns for Assessment Year 2025–26 is September 15, and early, error-free submissions can help avoid delays.

This rapid refund process showcases the Income Tax Department’s progress towards a faster, more transparent, and digital-first tax system, offering convenience and relief to taxpayers nationwide.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on January 20, 2017