Form 16 Due By June 15: Experts Advise Early ITR Filing For Quicker Refunds

With the closure of the Financial Year 2024-25, the ITR filing for said year can commence, subject to the release of the ITR utility and enablement of e-filing. While last year, e-filing utilities for a few ITR Forms were released in April 2024, this year, the taxpayers still await the same. For salaried individuals, the tax filings typically begin after receiving their Form 16 from their employer, with the due date of 15th June 2025.

“Processing of ITR usually can take anywhere between one to two months, depending on when you have filed. It is essential that the return filed is correct, verified successfully, and correct bank details were given while filing,” says Ritika Nayyar, Partner, Singhania & Co.

Simpler forms, such as ITR 1, usually get processed quickly, and refunds are credited promptly. Other ITRs, which are complex in terms of businesses, income sources, deductions, etc., may take longer too. However, the later it is filed, the more time it can take due to the quantum of returns since majorly people file around the deadline.    

When Tax Refunds Are Processed 

The department initiates the tax refunds once the tax returns are filed and duly verified by the taxpayers and thereafter the tax authorities have processed the return with a refund. “While the IT department’s manual states that it usually takes four to five weeks for the refund to be credited to the account of the taxpayer, the actual timelines may vary for each taxpayer depending upon the amount of refunds and reliefs claimed therein,” says Poorva Prakash, Partner, Deloitte India. 

Early Filing Results In Faster Processing 

Amongst others, filing the tax returns in time generally helps in the speedy processing of the tax returns and receipt of tax refunds, if any. “Further, in case of taxpayers who have a tax payable, timely payment of such taxes and return filing helps in avoiding additional interest and fee liability,” says Prakash. 

So, early filing usually results in early and faster processing of returns and refunds. “It also avoids the last-minute rush and delays, which could result in mistakes or prevent delays due to tax software issues. It helps to better plan your finances, understanding your taxes well in advance,” says Nayyar. At times, people may require ITR for loans, visas, etc., so early filing will be helpful.