Income Tax Latest Updates
Can ITR Portal Handle the Filing Rush Before 31st July? Here 's What the Government SaysCan ITR Portal Handle the Filing Rush Before 31st July? Here 's What the Government Says
Written by Shubham Jain
Income Tax Latest Updates
ITR filing 2026: Income tax refund in 24 hours? Taxpayer gets money in just a day
Written by Shubham Jain
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As the ITR (Income Tax Return) season kicks off, taxpayers are noticing an exciting trend, which is that many taxpayers are receiving their Income Tax Refunds within just 24 hours of filing their returns. In some cases, refunds have been credited in even less time, although the typical timeline appears to be within a day.
This trend marks a significant improvement from previous years, where it could take 90 days or more to receive funds.
ITR Refund in 1 Day? Why Are Some Taxpayers Getting Refunds So Quickly?
Numerous taxpayers who filed their ITR this year have posted on social media to share their experiences of receiving refunds within 24 hours after filing their ITR and completing the e-verification process. Tax experts had previously indicated that the average processing time for refunds was between 30 and 40 days or longer.
However, it's important to keep your expectations low. This expedited process is not yet available to all taxpayers. The timeframe for income tax refunds can vary based on individual cases, the nature of the return filed, and the verification process. Nonetheless, the overall speed and efficiency of the system have clearly improved.
Income Tax Return Filing 2026: A Real-Life Case Study
One of the taxpayers reported to EI Now Swadesh that their refund, which exceeded ₹50,000, arrived within 24 hours. The individual completed their ITR processing on July 20 at 3:57 PM, and the funds were credited to their account by 11:06 AM on July 21.
The taxpayers also said that they had to wait for 10 to 15 days for the refund last year. Now this wait time has marked a significant reduction from 90 days to 10 days and now just 24 hours.
Finance Minister Nirmala Sitharaman mentioned in Parliament a few years back that it took approximately 93 days to receive an income tax refund in the financial year 2013-14. Fast forward to the financial year 2023-24, and that duration had already decreased to about 10 days. Now, in AY 2025-26, many taxpayers are enjoying refunds in just 24 hours. All of this highlights the growing efficiency of the digital tax system.
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What is the Reason Behind These Quick Refunds?
The speeding up of the income tax refund process has been influenced by several major changes. For example, the Income Tax Department has advanced considerably in digitalization, with the entire process now largely automated.
The transition from an Excel-based system to a JSON (JavaScript Object Notation)-based filing has increased data processing speed. The refund process starts immediately after e-verification is done.
Additionally, the pre-validation of bank accounts and the linking of PAN Aadhaar ensures prompt refunds directly to the correct accounts.
Glossary
- Income Tax: Income Tax, a Type of Direct Tax, is Imposed by the Government on the Income of Individuals or Organisations.
- Income Tax Act: Income Tax Act, an Act to Manage and Govern the Direct Taxes, by Levying, Collecting, and Administering.
- Income Tax Department: Income Tax Department, a Part of the Indian Government, Handles the Levying and Collection of the Tax.
- Income Tax Return: Income Tax Return, Filed by Taxpayers, Contains a Formal Record of the Collected Tax by the Government.
- Income Tax Refund: Check income tax refund status online with PAN and AY under Section 237 after ITR verification.
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Disclaimer
Note: This guide is for information purposes only. The views expressed in this guide are personal and do not constitute the views of Savetaxs. Savetaxs or the author will not be responsible for any direct or indirect loss incurred by the reader for taking any decision based on the information or the contents. It is advisable to consult either a CA, CS, CPA or a professional tax expert from the Savetaxs team, as they are familiar with the current regulations and help you make accurate decisions and maintain accuracy throughout the whole process.
About Author
Shubham Jain is the Founder of SaveTaxs and has extensive experience in Indian and NRI taxation. He advises individuals, NRIs, and businesses on tax filing, tax planning, capital gains, DTAA benefits, fund repatriation, and compliance matters. He regularly writes about taxation and related financial topics. His focus is on making complex tax concepts easy to understand. Through his articles, he helps taxpayers stay informed, avoid common mistakes, and stay compliant with Indian tax laws. See Full Bio
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Frequently Asked Questions
Yes, but only in a few exceptional cases. Most taxpayers still wait longer, while some early filers with accurate returns and quick e-verification have received refunds in a day or even a few hours.
No, the tax department says that refund processing usually takes about 4-5 weeks after e-verification, even though this may be faster in some cases.
Some common things to improve chances of faster processing include accurate return filing, correct AIS and TDS matching, valid bank details, and immediate e-verification.
The department's processing has now become faster and simpler, and low-risk returns can move through the system more quickly after verification.
Yes, refund processing starts only after your return is successfully e-verified, so delays in the verification process will delay refund processing also.