Filing ITR This Month? Here's How Long The Refund Will Take
The refund amount will depend on the income tax regime you choose.
The new financial year began on Apr. 1, and it’s time for the taxpayers to gather all documents to file the Income Tax Return (ITR) for the financial year 2024-25 or assessment year 2025-26. Individual taxpayers who don’t need their accounts to be audited can file their ITR by Jul. 31, 2025.
However, filing ITR early comes with several advantages and helps in avoiding errors due to the last-minute rush. The ITR filing for AY 2025-26 begins after the Income Tax Department's notifications of the forms. The forms are notified in a phased manner and the filing starts once a utility gets active on the income tax portal. Usually, the utility for ITR-1 and ITR-2 is activated in the first or second week of April.
For salaried employees, Form 16 is the most important document to file ITR. Form 16 contains information about the tax deducted at source (TDS) over the financial year. This aids the salaried taxpayers to easily calculate their total tax liability and refunds, if any.
It is important to note that Form 16 is not compulsory to file ITR. Salaried taxpayers can use documents such as Form 26AS and salary slips to file their IT returns. To file the returns accurately, it is important to keep track of your income and record of tax payments made. The taxpayers can claim refunds for various deductions under the Income Tax Act, 1961, while filing ITR
When is a Tax Refund Applicable?
A tax refund is applicable when the tax amount you have paid is in excess of the total tax liability as per your income in the financial year 2024-25. The refund amount is calculated by taking into account the deductions and exemptions for the current assessment year.
The refunds will also depend on the income tax regime you choose. The old tax regime offers several deductions under various sections of the I-T Act, but it comes with higher tax rates. On the other hand, the new tax regime mandates limited deductions with liberalised tax slabs and lower tax rates.
When Will You Get The Tax Refund?
The taxpayers need to e-verify their ITRs in order to get the refunds. After e-verification, it can take four to five weeks for the refund to be processed by the I-T Department.
If the refund amount is not credited even after four to five weeks, it is important to check the discrepancies in the ITR filing, if any. You should check your email for any updates regarding the refund. You can also visit the ITR portal to check for updates regarding the refund status.
Some of the key factors that determine the period to receive the refunds include an error-free ITR filing and validation of deductions through the submission of required documents. The tax paid and deductions should also match with Form 26AS and the Annual Information Statement (AIS). To get the refunds without delay, it is important to ensure that your bank account is pre-validated and linked with the Permanent Account Number (PAN).
