News | Tax

Income Tax Returns Processing Time Reduced to 10 Days

The Central Board of Direct Taxes (CBDT) announced a significant reduction in the average processing time for income tax returns (ITRs) following verification by taxpayers. The CBDT revealed that this processing time has been slashed to just 10 days.
According to the CBDT, the tax department has made continuous efforts to enhance taxpayer services, aiming for seamless and expedited services. In line with this commitment, the average processing time for income tax returns after verification has been brought down to 10 days for the assessment year (AY) 2023-24. This marks a substantial improvement compared to the 82 days it took for AY 2019-20 and the 16 days required for AY 2022-23.
The statement emphasized the Income Tax department's dedication to processing tax returns efficiently and swiftly.
As of 5 September 2023, for AY 2023-24, approximately 6.98 crore income tax returns were filed, with 6.84 crore verified. Over 6 crore tax returns for AY 2023-24 have already been processed out of the verified returns, translating to the processing of over 88% of the verified returns. Moreover, more than 2.45 crore refunds for the current assessment year have already been issued.
The CBDT pointed out that certain types of tax returns are pending processing due to missing information or actions required from taxpayers. As of Monday, around 14 lakh ITRs for AY 2023-24 are awaiting verification by taxpayers. The CBDT urged taxpayers to complete the verification process promptly to avoid processing delays.
Additionally, about 12 lakh verified ITRs require further information from taxpayers, and the department has requested these individuals to respond to their communications swiftly.
Lastly, there are cases where ITRs have been processed, and refunds have been determined, but the Department is unable to issue them because taxpayers have not validated their bank account information for the refund. Taxpayers have been advised to validate their bank accounts through the e-filing portal.
The CBDT concluded by reiterating its commitment to fast-tracking processing and issuing refunds and called upon taxpayers to cooperate in this endeavour.



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Changes in Our Business Model
25th Sept 2020
Greetings from Moneylife Advisory Services
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • We will have to suspend the restructuring tool.
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
Debashis Basu