Tax dept plans to reduce average time taken for issuing refunds to 10 days

Currently, refunds get disbursed in 16 days

The revenue department is working on a mechanism to cut the average period of processing and issuing tax refunds to 10 days from 16 now.

The new timeline is expected to be enforced this financial year.

“In 2022-23, the average time taken for processing tax returns was 16-17 days. It was 26 days in the preceding year, 2021-22. Now we are looking at processing tax returns in 10 days and issuing refunds simultaneously,” a government official told Business Standard.

So far, refunds of Rs 72,215 crore have been issued from April 1 to August 21. This includes Rs 37,775 crore