By the last date for filing income tax returns (31st July), 7.28 crore people had filed their Income Tax Returns (ITR).
Those who need their returns audited by a Chartered Accountant (CA) can still file their ITR until 31st October. This extension applies to individuals running their own businesses.
Recently, Finance Minister Nirmala Sitharaman mentioned in Parliament that the time taken to process ITRs has significantly decreased.
In 2013, it took an average of 93 days to process a return, but now it only takes about 10 days. This improvement is seen as a major step by the government.
Not All ITRs Processed in 10 Days
While the Finance Minister stated that the average processing time has decreased to 10 days, it doesn’t mean that all ITRs will be processed within this time.
The complexity of the ITR form affects processing time. For example, simple returns might be processed in as little as 24 hours, while more complex ones may take longer.
Improvements in Tax Filing System
The Income Tax Department has made several improvements to speed up tax refunds. For example:
Aadhaar-Based Verification: Now, you can verify your ITR online using your Aadhaar card, eliminating the need to send documents by post. This change has made the process quicker and easier.
New Tax Filing Portal: Launched in 2021, the new e-filing portal is user-friendly, making it easier to pay taxes, file complaints, and make requests.
Automation and Digitization: The entire tax filing process is now computerized, reducing the chances of errors and speeding up the process.
Centralized Processing: Many tasks are now automated and handled centrally, saving time and making the process more efficient.
