New data from the Ministry of Finance shows considerable advancements in the submission and processing of Income Tax Returns (ITRs) for the Assessment Year (AY) 2023–24. Out of the 6.98 billion ITRs submitted as of September 5th, 2023, 6.84 billion have been confirmed, and more than 6 billion have been processed. Additionally, the data shows that more than 2.45 crore refunds have already been sent out. The ramifications of these figures and the improved effectiveness of the Income Tax Department are explored in this article. High Processing Rate: According to the ministry, more than 88% of the validated ITRs have already been handled. This high rate shows a strong commitment to timely taxpayer services in addition to efficiency.
Quick Turnaround: In contrast to the 82 days for AY 2019–20 and the 16 days for AY 2022–23, the average processing time for returns has drastically decreased to just 10 days for AY 2023–24. This quicker processing time is unquestionably encouraging for taxpayers who are waiting for confirmation or refunds. Refunds given: The government has greatly sped up the refund process, lessening the financial strain on taxpayers, with over 2.45 crore refunds already given.
Issues Affecting Unprocessed ITRs: Despite these encouraging numbers, there are still over 14 lakh ITRs awaiting verification, which slows down processing overall. 12 lakh validated ITRs are still awaiting the taxpayer’s response or additional information. The processing of these returns is delayed if this information is not provided. Important Steps Taxpayers Must Take: To prevent delays, taxpayers are urged to finish the verification procedure and reply to any correspondence from the agency. In some cases, refunds are prepared but are unable to be processed because the bank accounts are not valid.