Time taken for tax refunds in India cut from 3 months to 17 days in last 11 years

New Delhi, July 13: The average number of days it takes for taxpayers to get refunds from the Income Tax Department in India has come down drastically from 93 days in 2013 to a mere 17 days in 2024, reflecting the increased efficiency in the system on the back of rising digital infrastructure that enables faceless online disbursals.

The introduction of pre-filled returns, automation in refund processing, real-time TDS adjustments and online grievance redress mechanisms has led to reduced delays by as much as 81 per cent and improved taxpayer experience, according to official figures.

Data shared by the Principal Chief Controller of Accounts and the Central Board of Direct Taxes (CBDT) shows that between 2013-14 and 2024-25, refunds issued to taxpayers have surged by 474 per cent, rising from Rs 83,008 crore to Rs 4,76,743 crore.

The proportion of refunds relative to gross tax collections has risen from 11.5 per cent in 2013-14 to 17.6 per cent in 2024-25.

The taxpayer base has also expanded significantly, with income tax returns more than doubling from 3.8 crore in 2013 to 8.89 crore in 2024. The growth in gross direct tax collections during the same period has also surged by a staggering 274 per cent from Rs 7,21,604 crore to Rs 27,02,974 crore, indicating the rising income levels in a fast-growing economy.

India’s growth story continues to draw global attention, backed by strong fundamentals and consistent performance. Over the past decade, India’s economic size has tripled from Rs 106.57 lakh crore to Rs 331.03 lakh crore in 2024-25, with the GDP growth at a robust 6.5 per cent for the year, according to official figures.