Filing income tax returns may seem complicated, but procedures have been simplified via online forms launched recently. In FY23, things became more convenient as 80 per cent refunds were provided to taxpayers in less than 30 days.
The Central Board of Direct Taxes has further revealed that the average time taken for issuing income tax refunds has been brought down to 16 days in FY23.
What has changed?
This is a significant improvement compared to 26 days, which was the time taken during FY22.
The percentage of returns filed on the very next day after the date of filing has also gone up from 21 per cent to 42 per cent.
Technology driving efficiency
Thanks to the integration of technology and digital platforms, the income tax department reached its peak capacity when it processed 22.94 lakh returns in a single day on July 28, 2022.
Requests for rectification have also gone down to a mere 0.1 per cent, and they are processed within nine days.
By the end of FY23, the tax department also completed faceless assessments for four lakh people.
Complaints related to the faceless assessment process also went down by 60 per cent between FY22 and FY23.