ITR Processing and Refunds: A Snapshot of AY 2025-26
The Income Tax Department has significantly cut down the time it takes to process Income Tax Returns (ITRs) and issue refunds. According to recent reports, the average processing time has dropped to a remarkable 17 days, a huge improvement from 93 days a decade ago. In fact, some taxpayers are even reporting getting their refunds within a matter of hours.
Last month, a taxpayer named MK Nathan shared his experience on X, where his ITR was processed and his refund issued in just 24 hours. The Income Tax Department even replied to his post, acknowledging the achievement.
The department is giving priority to simpler returns, like ITR-1, which is helping to speed up the process. However, filing your return close to the deadline can still cause delays.
Is There a Delay This Year?
While the process is generally faster, some taxpayers may experience delays. This year, the IT department is using more robust methods, including the Annual Information Statement (AIS) and Form 26AS, to prevent tax fraud and verify all claims.
This stricter scrutiny may also involve looking into older returns, which can cause some holdups. To ensure a timely refund, it’s crucial to:
- Pre-validate your bank account.
- Link your PAN and Aadhaar.
- Correct any errors in your filing.
If there is a delay, remember that the Income Tax Department does offer interest on late refunds. It’s best to be patient and ensure all your information is correct and up-to-date.