More than 50% taxpayers get IT refunds within month

Over 50% of taxpayers and 45% of businesses received Income Tax Refunds within a month, which was a major element for over eighty percent of CII survey respondents, showing improved trust in the tax department.

The government has prioritised faster return processing and refund distribution, and the responses to the survey indicate that the feedback has been positive.

Refunds might take up to a year until they were computerised a few years ago.

While about 88% of taxpayers and firms representing a sample of over 3,500 individuals stated refunds were quicker than 5 years ago, 65-70% of those polled believed that the wait time was less than a year ago.

According to the report, over 62% of respondents regarded the refund process as “very smooth.”

When asked about the TDS system, three-quarters of people stated there was no excess deduction, but the outcomes clearly indicated that there was scope for adjustment when it came to businesses, as only 22% said they failed to pay additional TDS. At least 26% of business entities reported paying 10-20% more than their liability.

The extensive efforts implemented by the government in recent years to streamline, easier, and facilitate the taxation regime have paid rich dividends, as evidenced by the CII’s upbeat survey results on assessing the speed and efficiency of income tax refunds,” said R Dinesh, the industry lobby’s leader.