The Central Board of Direct Taxes (CBDT) announced a significant reduction in the average processing time for income tax returns (ITRs) following verification by taxpayers. The CBDT revealed that this processing time has been slashed to just 10 days.

 

According to the CBDT, the tax department has made continuous efforts to enhance taxpayer services, aiming for seamless and expedited services. In line with this commitment, the average processing time for income tax returns after verification has been brought down to 10 days for the assessment year (AY) 2023-24. This marks a substantial improvement compared to the 82 days it took for AY 2019-20 and the 16 days required for AY 2022-23.

 

The statement emphasized the Income Tax department's dedication to processing tax returns efficiently and swiftly.

 

As of 5 September 2023, for AY 2023-24, approximately 6.98 crore income tax returns were filed, with 6.84 crore verified. Over 6 crore tax returns for AY 2023-24 have already been processed out of the verified returns, translating to the processing of over 88% of the verified returns. Moreover, more than 2.45 crore refunds for the current assessment year have already been issued.

 

The CBDT pointed out that certain types of tax returns are pending processing due to missing information or actions required from taxpayers. As of Monday, around 14 lakh ITRs for AY 2023-24 are awaiting verification by taxpayers. The CBDT urged taxpayers to complete the verification process promptly to avoid processing delays.

 

Additionally, about 12 lakh verified ITRs require further information from taxpayers, and the department has requested these individuals to respond to their communications swiftly.

 

Lastly, there are cases where ITRs have been processed, and refunds have been determined, but the Department is unable to issue them because taxpayers have not validated their bank account information for the refund. Taxpayers have been advised to validate their bank accounts through the e-filing portal.

 

The CBDT concluded by reiterating its commitment to fast-tracking processing and issuing refunds and called upon taxpayers to cooperate in this endeavour.