Income Tax Return (ITR) processing AY 2024-25: More than 4 crore taxpayers have already filed their Income tax Returns (ITRs) for Assessment Year (AY) 2024-25 till July 22, the Income Tax Department has informed on its portal.
Last year, as many as 8.14 crore total ITRs were filed and in AY 2024-25, this number is expected to go further up.
The Income-tax Department last year saw a massive surge in ITR filings, setting a new record of 8.18 crore ITRs for AY 2023-2024, up to 31.12.2023, compared to 7.51 crore ITRs filed by 31.12.2022. This represented a 9% increase over the total ITRs filed for AY 2022-23. Additionally, 1.60 crore audit reports and other forms were filed during this period, compared to 1.43 crore in the corresponding period of the previous year.
The Income Tax Department has compared the last year ITR filing data with this year’s phase wise to find that the number of tax returns has been higher than last year’s taking into account the number of returns filed till July 24. Those who have filed income tax returns are now awaiting their tax refunds.
How many days does it take to process ITR and get refunds?
As taxpayers wait for faster processing and refunds, tax experts say it is difficult to predict when refunds will be processed for Assessment Year 2024-25. This uncertainty could impact your coverage of personal finance and tax issues, especially as you follow up on government announcements and changes in the Union Budget 2024.
The Income Tax Department is taking its time to prepare the ITR filing system for the expected heavy rush in the coming weeks until July 31, the due date for filing returns for most taxpayers in the country.
The ITR processing system has become much faster in recent years, so taxpayers should not worry about refunds and processing time at this point.
Early tax filers typically receive their refunds sooner. Therefore, it is always advisable to file returns early, not only for faster refund processing but also to avoid the last-minute rush.
According to tax experts, processing takes longer during the final days before the due date due to the heavy rush.
It is difficult to predict how long it will take to process a refund. However, last year, many people received their refunds within a week to 10 days of filing their ITR. Generally, early filers receive refunds sooner, while those filing towards the end of July experience delays due to the heavy rush of filings.
Also read: Renting out your property? Brace for higher taxes, tweaked ITR filing after THIS Budget 2024 change
How much time the tax department takes to process ITRs
All returns are processed electronically and will be handled in due course by the department.
Once the returns are processed, if there is no notice or query, refunds are automatically prepared for remittance.