Income tax refunds have grown nearly six times in the past 11 years — from just ₹81,457 crore in FY 2013–14 to ₹4.8 lakh crore in FY 2023–24. This sharp rise, as per CBDT data, shows better compliance, faster processing, and greater taxpayer awareness. But are you getting your rightful refund on time?
Let’s break down what’s changed, what taxpayers should know, and how to ensure faster refunds.
What Caused the Surge in Income Tax Refunds?
The Central Board of Direct Taxes (CBDT) attributes this increase to a mix of policy reforms, digital transformation, and growing taxpayer base. Key drivers include:
- Faster Processing via CPC Bengaluru & Faceless Regime
Most ITRs are now processed within 16–21 days on average. - Wider PAN-Aadhaar Integration
Reduces errors and duplicate filings, ensuring correct refunds. - Rise in TDS Deductions
Salaried employees, freelancers, and small business owners often face excess TDS — leading to refund claims. - Increased Taxpayer Base
Return filers grew from 3.79 crore in 2013–14 to over 7.7 crore in 2023–24. - Auto-Populated ITR Forms & AIS Integration
Mismatch detection has improved, allowing quicker corrections and valid refunds.
Refund Trends: Then vs Now
| Particulars | FY 2013–14 | FY 2023–24 |
|---|---|---|
| Total Income Tax Refunds | ₹81,457 crore | ₹4.80 lakh crore |
| ITRs Processed (within 30 days) | Limited | 90%+ returns |
| Refunds via ECS (Direct Bank Transfer) | Low Adoption | 100% Mode |
Source: CBDT, Income Tax Department annual stats
How to Get Your Income Tax Refund Faster
Here’s what you can do to speed up the refund process:
- File ITR Early (Before Deadline)
Late filing delays processing, especially for verification. - Verify ITR Within 30 Days
Without e-verification (Aadhaar OTP, net banking, etc.), refund won’t be processed. - Pre-Validate Bank Account
Only validated accounts with correct IFSC will receive refunds. - Check AIS and TIS Before Filing
Ensure no mismatch between Form 26AS and Annual Information Statement. - Declare All Incomes
Missing interest or freelance income can trigger refund hold or scrutiny. - Respond to CPC Notices Promptly
If CPC raises queries (under Section 143(1)), reply with supporting documents.
Expert Tip: Track Refund Status Weekly
Use the official refund status portal (NSDL) or log into the Income Tax e-filing portal → Services → Refund Status.
Delay beyond 30–60 days? Raise a grievance on the portal or file a complaint through the e-Nivaran module.
Legal Reference: Section 244A – Interest on Delayed Refunds
If your refund is delayed beyond the prescribed period, the Income-tax Department must pay interest under Section 244A. Here’s how it works:
- 0.5% per month (or part of the month)
- Calculated from the date of claim to actual payment
- Automatically added by CPC in most cases
Example: If your ₹30,000 refund is delayed by 3 months, you should receive an additional ₹450 as interest.
Refund Not Received? Possible Reasons
- ITR not e-verified or verified late
- Mismatch in TDS claims vs Form 26AS
- Wrong bank account or IFSC
- High outstanding demand from previous years
- Return picked for scrutiny (manual or risk-based selection)
FAQs on Income Tax Refunds
Q1. How long does it take to receive an income tax refund?
Most refunds are issued within 20–45 days post-verification.
Q2. Can I change my bank account after filing ITR?
Yes, log in → Profile → Pre-validate a new account → Set as primary for refunds.
Q3. What if refund amount is less than expected?
Check intimation under Section 143(1) for adjustments or discrepancies.
Final Thoughts
The massive rise in income tax refunds is a clear sign of India’s improving tax ecosystem — but only if you file on time, verify, and claim correctly. Avoid common mistakes and keep records ready. A proactive approach can help you get your refund without delay or disputes.
Need help with your ITR filing or refund follow-up? Talk to Efiletax – India’s trusted tax experts for individuals and small businesses.
Summary
Income tax refunds surged from ₹81,457 crore in FY 2013–14 to ₹4.8 lakh crore in FY 2023–24. To get your refund faster, file early, verify ITR, match AIS/Form 26AS, and use a validated bank account. Interest is payable if refund is delayed beyond 30–60 days.