The Ministry of Finance has released new data, indicating significant progress in the filing and processing of Income Tax Returns (ITRs) for the Assessment Year (AY) 2023-24. As of September 5th, 2023, out of 6.98 crore ITRs filed, 6.84 crore have been verified, and more than 6 crore have been processed. The data also reveals that over 2.45 crore refunds have already been issued. This article delves into the implications of these numbers and the enhanced efficiency of the Income Tax Department.
High Rate of Processing: The ministry reports that over 88% of the verified ITRs have already been processed. This high rate indicates not only efficiency but also a strong commitment to timely taxpayer services.
Speedy Turnaround Time: The average processing time for returns has remarkably dropped to just 10 days for AY 2023-24 compared to 82 days for AY 2019-20 and 16 days for AY 2022-23. This faster processing time is undoubtedly a positive sign for taxpayers awaiting refunds or confirmation.
Refunds Issued: With over 2.45 crore refunds already issued, the department has significantly expedited the refund process, thereby easing the financial burden on taxpayers.
Issues Affecting Unprocessed ITRs: Despite these positive figures, approximately 14 lakh ITRs are still pending verification, which slows down the overall processing. About 12 lakh verified ITRs are pending further action or information from the taxpayer’s side. Failure to provide this information delays the processing of these returns.
Important Actions Needed from Taxpayers: Taxpayers are encouraged to complete the verification process and respond to any communications from the department to avoid delays. In some instances, refunds are ready but cannot be issued due to unvalidated bank accounts.
Conclusion: The Ministry of Finance’s latest report paints an optimistic picture, with a high rate of ITR verification and processing, as well as expedited refund issuance. However, certain responsibilities lie with taxpayers to ensure their ITRs are verified and additional requested information is provided. In doing so, they can help the Income Tax Department in further improving the efficiency of the tax return process.
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Ministry of Finance
6.84 crore ITRs verified out of 6.98 crore ITRs filed for AY 2023-24 with over 88% of verified ITRs processed as on 5th Sept. 2023
More than 2.45 crore refunds for AY 2023-24 issued
Posted On: 05 SEP 2023
The Income Tax Department is committed to process the Income Tax Returns (ITRs) in a speedy and efficient manner. As on 05.09.2023, 6.98 crore ITRs for AY 2023-24 were filed, out of which 6.84 crore ITRs have been verified. More than 6 crore ITRs of AY 2023-24 have been processed out of the verified ITRs as on 05.09.2023, resulting in processing of over 88% of the verified ITRs. More than 2.45 crore refunds for AY 2023-24 have already been issued.
The Department’s efforts to provide seamless and expeditious taxpayer services are being continuously strengthened. In line with the same, average processing time of ITRs (after verification) has been reduced to 10 days for Returns filed for AY 2023-24 compared to 82 days for AY 2019-20 and 16 days for AY 2022-23.
It is pertinent to state that the Department is not able to process the following categories of ITRs for want of certain information/action on the part of taxpayers:
a. There are about 14 lakh ITRs for AY 2023-24 which have been filed but are yet to be verified by the taxpayers as on 04.09.2023. Failure to verify the Returns causes delays in processing as the Return can only be taken up for processing once the verification has been completed by the taxpayer. Taxpayers are urged to complete the verification process immediately.
b. There are about 12 lakh verified ITRs in which further information has been sought by the Department, for which requisite communication has been sent to the taxpayers through their registered e-filing accounts. Taxpayers are requested to respond to such communication expeditiously.
There are several cases in which the ITRs have been processed and refunds have also been determined but the Department is unable to issue them as taxpayers have not yet validated their bank account in which the refund is to be credited. Taxpayers are requested to validate their bank accounts through the e-filing portal.
The Department remains committed to speedy processing and expeditious issue of refunds and solicits the cooperation of the taxpayers.
