Individuals who submitted ITR-1, ITR-2, or ITR-3 for the fiscal year 2023-24 are left pondering a critical question: Which taxpayers will obtain their refunds sooner?
Understanding ITR-1, ITR-2 & ITR-3
ITR-1 form: The ITR-1 form is applicable for an Ordinary Resident (ROR) Individual whose total income does not exceed Rs 50 lakh. This income may comprise earnings from salary, revenue from a single house property, and additional income sources, including bank interest, dividends, and agricultural income capped at Rs 5,000.
ITR-2 form: This form is intended for individuals or Hindu Undivided Families (HUFs) who do not derive income from “Profits and Gains of Business or Profession” and do not qualify for ITR-1.
ITR-3 form: The ITR-3 form is intended for individuals and Hindu Undivided Families (HUFs) involved in business or professional endeavors, necessitating the upkeep of comprehensive financial records. This category encompasses professionals such as chartered accountants, medical practitioners, legal advisors, and engineers, whose earnings are derived from actual profits.
ITR-1 is recognized as the most straightforward of the tax forms, resulting in a generally expedited processing time relative to other forms. As a result, refunds are frequently issued shortly after the completion of the processing. Claims for refunds associated with ITR-1 are typically resolved more swiftly than those for ITR-2 and ITR-3, which is indicative of the less complex income reported in ITR-1 compared to the intricacies found in the other forms. Taxpayers submitting ITR-1 can often expect to receive their refunds within a few days to weeks, assuming there are no complications or necessary adjustments. However, it is important to note that filing returns near the deadline may result in processing delays, as stated by Adhil Shetty, CEO of Bankbazaar.com.
The speed of refund processing can be influenced by various factors, irrespective of the ITR form utilized.
The precision of the information provided is crucial; inaccuracies or inconsistencies in the Income Tax Return (ITR) may result in delays or potential denial of the refund request.
E-verification: Timely e-verification of your return can greatly expedite the processing duration.
It is essential to provide accurate bank account information in the Income Tax Return (ITR) to prevent any delays in the processing of refund credits.
TDS reconciliation: Discrepancies between the TDS claimed and the TDS reported by deductors may necessitate further verification procedures.
Substantial refunds: Significant refund sums may attract further examination, which could lead to an extended processing duration.
How to check ITR refund
The process of tracking income tax refunds can be conducted online via two main platforms: the National Securities Depository Limited (NSDL) website and the official portal of the Income Tax Department.
Checking refund status from the income tax e-filing portal
Access the official website for income tax e-filing.
Authenticate your identity using your PAN information.
After logging in, find and select the ‘My Account’ section.
Proceed to click on the “Refund/Demand Status” option.
You will be presented with the status of your income tax refund, which will include information such as the assessment year, current status, reasons for any refund issues, and the payment method.
Checking refund status from the NSDL website
Access the NSDL TIN website.
Log in using your PAN information.
Select the assessment year for which you wish to verify the refund status from the dropdown list.
Input the captcha code shown on the screen.
Once you have entered the captcha, click the ‘Submit’ button.
A notification will be displayed on your screen, revealing the status of your ITR refund.
Click ‘Proceed’ to check your refund status.
