Last Updated:June 11, 2025, 17:03 IST
Filing and verifying your ITR on time helps ensure faster processing and quicker tax refunds, usually within 3 weeks if excess tax has been paid.
File ITR early to avoid penalties and get refunds faster. (Representative Image)
Filing your Income Tax Return (ITR) on time is not just a statutory obligation, it’s a practical step towards receiving any eligible tax refunds promptly. The sooner you file and verify your ITR, the earlier the Income Tax Department can process it.
Typically, if there is a refund due—meaning you have paid more taxes than your actual liability—it will be credited to your bank account within 20 to 45 days after your return is processed and verified.
However, delays may occur if the ITR is not verified on time, if there are discrepancies in the return, or if the verification is done through physical submission to the Centralized Processing Centre (CPC), which takes longer than electronic verification.
To ensure smooth and timely processing, it is crucial to file your ITR well before the deadline. Late filing may attract penalties and interest and also delay the issuance of your refund. Once the return is filed and verified, the Income Tax Department reviews it under Section 143(1) of the Income Tax Act and issues an intimation indicating the outcome.
How to Check the Status of Your Income Tax Refund
Visit the official portal: Go to the Income Tax Department’s e-filing website – https://www.incometax.gov.in/iec/foportal.
Log in to your account: Use your PAN, password, and the captcha code. You’ll also need OTPs sent to your registered mobile number for two-step verification.
Navigate to the relevant section: After logging in, click on the ‘e-File’ tab.
Access your return details: Select ‘Income Tax Returns’ and click on ‘View Filed Returns.’
Select the relevant assessment year: Choose the ITR for which you want to check the refund status.
View refund details: Click on ‘View Details’ to check the status of your return and the refund, if applicable.
Understanding ITR Processing Status and Refund Outcomes
After processing, the Income Tax Department issues an intimation under Section 143(1) with one of the following outcomes:
Refund Determined: If your return is accurate and you’re eligible for a refund, the amount will be processed and credited—usually within 20 to 45 days post e-verification. If the acknowledgement (ITR-V) was physically mailed instead of e-verified, processing might take longer.
Demand Determined: If there’s a discrepancy in your return, such as an underreported income or incorrectly claimed deduction, the department may issue a demand notice indicating additional tax payable. You must pay the due amount within the stipulated time mentioned in the notice.
No Demand – No Refund: This means your tax return has been processed, and there is no further tax liability or refund due. Your declared income and tax paid match the records of the department.
It’s important to ensure that your ITR is accurate and supported by proper documentation. Any mismatch in tax credits, discrepancies in TDS, or errors in reported income can delay processing or lead to a tax demand. Verifying your return (either electronically or by mailing ITR-V) is essential for initiating processing. By staying organised, using the online platform efficiently, and regularly checking your refund status, you can avoid unnecessary delays and ensure a smooth experience with your tax filings.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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