ITR Filing 2024: Key Information for Taxpayers in India

The deadline for filing your income tax returns (ITR) is just a few weeks away, and it’s crucial to file before July 31, 2024, to avoid legal repercussions and penalties. Taxpayers can now conveniently pay their taxes online through the e-filing portal.

If your tax liability exceeds the TDS (tax deducted at source) paid during the year, you’ll need to settle the outstanding amount online. This can be done through any of the 28 banks authorized by the Income Tax Department, including Axis Bank, HDFC Bank, ICICI Bank, and State Bank of India. Here’s a complete list of authorized banks: Axis Bank, Bandhan Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, City Union Bank, DCB Bank, Federal Bank, HDFC Bank, ICICI Bank, IDBI Bank, Indian Bank, Indian Overseas Bank, IndusInd Bank, Jammu & Kashmir Bank, Karur Vysya Bank, Kotak Mahindra Bank, Karnataka Bank, Punjab National Bank, Punjab & Sind Bank, RBL Bank, State Bank of India, South Indian Bank, UCO Bank, Union Bank, and Dhanlaxmi Bank.

Refund Process

If your TDS and TCS (tax collected at source) payments exceed your tax liability, the tax department will issue a refund. Typically, refunds are processed within a few days or weeks and are credited to the bank account linked to your e-portal account. According to tax professionals, processing income tax returns generally takes 15 to 45 days from the date of e-verification. For those using the offline verification method (ITR-V form), the process may take longer.

Amit Bansal, Partner – Direct Tax at Singhania & Co., notes, “The time taken by the tax department to process a return can vary widely. While some returns are processed the same day or within a month, others may take six months to a year, depending on the department’s discretion and efficiency.”

After your ITR is processed, you will receive an Intimation under Section 143(1) of the Income Tax Act, 1961. No intimation can be issued after nine months from the end of the financial year in which the return was filed. For ITRs filed for FY 2023-24 (AY 2024-25), expect this notice by December 31, 2024.

If your ITR isn’t processed in a timely manner, you can lodge a complaint via the “Grievance” tab on the income tax portal or contact the Central Processing Centre (CPC) helpline.

Factors Affecting ITR Processing Time

Several factors can influence how long it takes to process your ITR, including:

• The type of ITR form used
• The complexity of the return
• The number of claims for deductions or exemptions
• Whether these claims are already covered in Form 16

Simpler forms like ITR-1, used by individuals with straightforward income, are processed faster than more complex forms like ITR-3, which involve business or professional income.

Intimations After ITR Processing

Once your ITR is processed, you will receive an intimation notice under Section 143(1), which can indicate one of the following:

• Intimation for Tax Demand: If discrepancies are found, you may need to pay additional tax due to errors or adjustments.
• Intimation for Tax Refund: If no issues are found, a refund is issued or adjusted if necessary.
• No Demand or Refund: If the return is processed without changes affecting tax liability, no further action is required.

By understanding these timelines and potential outcomes, you can better navigate the ITR filing process and address any issues promptly. Stay informed and proactive to ensure a smooth tax filing experience this year.