With the September 16 deadline for filing Income Tax Returns (ITRs) over, millions of taxpayers are eagerly awaiting their refunds. Many are wondering if the Income Tax Department delays processing refunds if the refund amount is large, such as over Rs 50,000.
According to income tax rules, there is no upper limit on refunds. Whether your refund is Rs 10,000 or Rs 1 lakh or even greater, it will be credited the same way. However, refunds involving larger amounts may require additional scrutiny by the department, which may result in a slight delay in processing, experts are of the view.
Benefits for early income tax return filers
Taxpayers who filed their ITR much ahead of the deadline, i.e., weeks before the due date, found their e-verification completed within a few hours, and in many cases, the ITR was processed and refunds issued the same day.
However, for those who filed their returns on the last day or the day before, i.e. 15th or 16th September, the story was a little different. The e-filing portal was overloaded at that time, resulting in e-verification taking 24 to 48 hours and slow processing.
How long does it take to receive a refund?
Typically, refunds are credited to your bank account within 2 to 5 weeks after e-verifying your ITR, says the Income Tax Department. If your return is simple — such as just salary income and basic deductions — you may receive a refund sooner. However, if your return includes business income, capital gains, or numerous deductions, the department conducts additional scrutiny, which may increase the processing time.
Why are ITR refunds delayed?
Refunds can be delayed due to several reasons, such as: Errors in PAN, Aadhaar, or bank details; bank account not pre-validated; incorrect IFSC code or closed account; mismatch in TDS data; return flagged for scrutiny.
How to check refund status?
You can easily check your refund status by logging in to http://www.incometax.gov.in. Go to the e-File tab and select View Filed Returns, and the refund status for the relevant assessment year will be displayed on the screen.
Summing up…
Therefore, there’s no problem getting big refunds. The processing in some cases may take a little longer. If you’ve entered all the details correctly and your PAN-Aadhaar link is in place, there’s no need to worry. If you need a quick refund, remember — it’s always beneficial to file your ITR on time, not on the last day.