ITR Refunds for FY2023-24 (AY2024-25): Who will receive tax refunds quicker, filers of ITR-1, ITR-2 or ITR-3?

Many individuals who have submitted their income tax returns (ITR) for the fiscal year 2023-24 (assessment year 2024-25) and are entitled to refunds have not yet received the funds in their bank accounts. If you have submitted ITR-2 or ITR-3 for the fiscal year 2023-24, there is a chance that you have not received your tax refund yet. Please note that your tax refund can only be issued once the Income Tax Department processes your verified ITR.

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What to do if intimation under section 143 (1) is received after filing ITR: How do I reply to income tax notice under section 143 (1)?

Time taken for ITRs to get processed

"The processing time for an income-tax return by the tax department varies based on several factors such as the type of ITR form selected, the nature and amount of deductions/ exemptions claimed by the taxpayer in the return amongst others. Individuals who earn income from salary, one house property, income from other sources, etc. and where the total income does not exceed Rs. 50 lakh are eligible to file ITR-1. Generally, it is observed that simpler forms like ITR-1 are processed more quickly as compared to complex forms like ITR-3 which are used by individuals and HUFs with business or professional income," says CA Muskkan Kukreja, Assistant Director and Program Coordinator -Accounting and Finance, S K Somaiya College, Somaiya Vidyavihar University.

How many days it takes to get tax refund: After filing ITR, when will I get refund?

ITR-1: The procedure for ITR-1 is usually simple. Historically, individuals who filed their taxes using only Form 16 had their tax returns handled in under 10 days and received their refunds within 15 days.

ITR-2: The ITR-2 form contains extra information like capital gains, which needs thorough verification and examination. So, the process typically takes 20 to 45 days, but it might take a bit longer on occasion because of the additional detailed information needed.

ITR-3: The process may require more time, typically 30-60 days, as ITR-3 involves intricate data, such as business income, which necessitates a more detailed review.

How long does it take to get your ITR refund?

"ITR-1 is a simplified tax return form which is applicable to individuals and HUF satisfying certain criteria. As a general rule, higher the complications in an ITR form, higher the is processing time. Naturally, the processing of ITR-1 is much faster as compared to other tax forms as it is the most basic. It is also true that the refunds are credited shortly after the processing of the form. Typically, refund claims for ITR-1 are processed faster, followed by ITR-2 and ITR-3, due to the relative simplicity and complexity (respectively) of the income reported. Taxpayers usually receive refunds for ITR-1 within a few days if there are no issues or adjustments. However, if returns are filed very close to the deadline, processing delays may occur. Refunds for ITR-2 and ITR-3, assuming there are no issues or adjustments, are generally received within a couple of months," explained Yogesh Kale, Executive Director, Nangia Andersen LLP.

Tax refund status: How to check ITR refund status online using PAN number on e-filing portal, NSDL website

According to the tax department's e-filing website, "Refund processing by the tax department starts only after the return is e-verified by the taxpayer. Usually, it takes four to five weeks for the refund to be credited to the account of the taxpayer. However, if a refund is not received during this duration, the taxpayer must check for intimation regarding discrepancies in ITR; check email for any notification from the IT department regarding the refund."
Some individuals have reported receiving their tax refunds within a week of filing, while others are still awaiting processing of their income tax returns.

"For individual clients this year, refunds have generally been processed within 20-45 days for ITR-1 and ITR-2. However, there have been certain clients who received refunds within a week or had their ITR processed within two to three days. The processing time for ITR-3 has typically taken around 30-60 days. There's no clear pattern, as the duration largely depends on the complexity of the return and the accuracy of the information submitted," Bansal told ET Online earlier.

What to do if your ITR refund is delayed

If the taxpayer does not receive the refund within this time frame, they should look into any issues with their income tax return and review their email for any messages from the tax department about the refund. By following the steps provided below, the taxpayer can also keep track of the status of their refund through online filing.

Step 1: Go to the e-Filing portal homepage.
Step 2: Enter the user ID and password.
Step 3: Go to e-File tab > Income Tax Returns > View Filed Returns.
Step 4: Now you can check the refund status for the desired Assessment year.
Click on View Details and here you can also check the life cycle of filed ITR.
Status 1: When refund is issued
Status 2: When refund is partially adjusted
Status 3: When full refund adjusted
Status 4: When refund is failed




The Income Tax Department scheduled to be paid may fail to get credited to your bank account for the following reasons:
1. In case the bank account is not pre-validated. It is now compulsory to pre-validate your bank account.
2. The name mentioned in the bank account does not match with PAN card details.
3. In case of an invalid IFSC code.
4. If the account that you have mentioned in the ITR has been closed.

If your PAN is inoperative, your refund will get failed and you will see a warning message to link your PAN with the Aadhaar.

Remember that in order to receive a refund, you must e-verify your income tax return. The most recent regulations state that you have thirty days from the day you file your income tax return to e-verify your ITR.

Therefore, you will not be qualified for an ITR reimbursement if you haven't e-verified your return yet.

(With inputs from Neelanjit Das/ET Online)