According to a new survey, the automation and streamlining of the income tax refund procedure has enhanced taxpayer trust while also making the process more efficient. In fact, as many as 87% of individual respondents and 89% of organizations polled believed the return process was simple. On Wednesday, the poll, conducted by industrial association CII to measure the speed and efficiency of income tax refunds, was delivered to Union Finance Minister Nirmala Sitharaman.
"The process of checking refund status was reported as smooth among the 84% individual respondents and 77% firm level respondents," according to the research. According to the survey, 89% of individual respondents and 88% of businesses reported a significant reduction in waiting time for income tax refunds during the last five years.
An income tax refund is frequently received in less than a month, according to 53.2% of individuals and 44.9% of businesses. The time it takes to receive a refund ranges between one and three months for 43.8% of individuals and 48.9% of firm level responders. Meanwhile, only 3% of individual responders and 6.2% of organizations said it took more than three months. Furthermore, 82.8% of individual respondents and 84.5% of firm level respondents expressed higher trust in the Income Tax Department.
CII conducted the poll in October 2023, with 3,531 respondents from around the country. Individual responses made up 56.4% of the total, while corporations, enterprises, and organizations made up 43.6%.
"The significant reduction in waiting time to get an income tax refund over the last five years by both individuals and firms, as shown by the survey results is encouraging as it reflects the Government's unrelenting efforts to make the process of getting income tax refunds simple and efficient over the years" , said Chandrajit Banerjee, Director General of the CII.
The Central Board of Direct Taxes has been trying to ensure that refunds are processed smoothly and on time. According to the most recent figures, reimbursements totaling Rs. 1.77 lakh crore were issued this year between April 1 and November 2023.
According to the survey, 94.4% of individual survey respondents believe that ITR refunds are automatically created after filing the ITR, while only 5.6% believe that extra documents are required to complete the procedure. According to 95.5% of firm level survey respondents, the reimbursement is created automatically, with only 4.5% requiring additional documentation to complete the procedure.
