How Long Does It Take To Get Tax Return (And Why)?

Exact Answer: 20 to 45 Days

An income tax return may be a form or form that’s filed with a tax professional’s assistance that reports income, expenses, and other relevant tax information. Tax returns allow the taxpayers to calculate their liabilities, schedule tax payments, or request refunds for the overpayment of taxes. In many countries, tax returns filing for a person is completed annually alongside reportable income, including wages, interest, dividends, capital gains, or other profits.

How Long Does It Take To Get Tax Return?

CountriesDuration for Tax Returns
USA21 to 42 Days
India20 to 45 Days
UK5 Days to 8 Weeks
Germany2 to 6 Months

Sometimes, when someone ends up paying the tax more than they are supposed to pay. For example, if TDS or tax deducted at the origin is more than the tax they owe, they can demand an income tax refund. Income Tax Refunds are a way to ensure that a person gets back any extra tax they have paid.

The government has made this easy process of income tax refunds online. After filing the Income Tax returns and completing the verification, the refund period is usually 20 to 45 days after processing the ITR. If it takes longer, one should check-up with the CPC or Centralised Processing Centre. Online tracking is also possible.
If someone files their IT refunds, they can calculate it after considering all deductions and exemptions.

The total tax paid for a year will include TCS (tax collected at source), TDS, TDS, and any advance taxes. If this exceeds the actual tax liability, then one can claim an ITR refund. The procedure of income tax refunds is very sincere. Once filed for returns, verification of the same is done either by posting a physical copy of the ITR-V receipt or electronically, refund processing will start.

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The CPC will check all the taxes and review if paid higher than the individual liability, and finally, begin processing the refund. Once the procedure is complete, an ITR will generate, it will automatically transact the credit to the bank account.

Why Does It Take That Long To Get Tax Return?

The refunds are usually done within 21 days but might get delayed due to several factors.

  • The Income Tax department might need some supplementary documentation to process the refund application. In such situations, one should contact the assessing manager immediately via phone or postal services and show the documentation.
  • The rejection of the refund request is because the applicant owes some taxes to the Income Tax department. One might receive a notification from the department declaring the outstanding amount of tax payable.
  • In this matter, they should check all the papers and recheck the tax liability and refund to be received. If the figures one have filed in the returns form are correct, they can file a rectification supporting their claim, and, if incorrect, one must pay the outstanding tax charged by the department within the time limit specified in the notification.
  • The refund requested was found to be incorrect as per the Income Tax department. Hence, rejected.
  • When bank account details given to the IT department while filing returns have changed. One must contact them and inform about the new one to the assessing officer.
  • If the Income Tax department has not begun to process the returns, one can review their returns and append the missed out deduction if they are eligible to receive it.
  • Filing returns on a physical form and not using the online method. Concocting the physically filed refund forms always takes time. So, one should wait for the Income Tax department to regulate forms and the paperwork.
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Conclusion

To conclude, it is always suggested not to delay filing for income tax returns because the earlier one files the returns, the earlier they get. While time progresses, there might be more returns to be processed for the IT department. And hence the refund can be delayed. Nevertheless, there might be several other causes present for not getting the refund as fast as anticipated.

Reference

  1. https://journals.sagepub.com/doi/abs/10.1177/0256090920060402
  2. https://www.jstor.org/stable/4536882