Has anybody received a refund after filing an Indian ITR for 19-20?

Overview of Refund Delays and Recovery

The Income Tax Return (ITR) for 2019-20 fiscal year has been a topic of concern for many individuals in India. The question is whether tax returns for this period have yielded refunds, and if not, what the current status is.

Refunds Received by Some Taxpayers

Yes, some individuals have already received their tax refunds for the 2019-20 fiscal year. For instance, a filer in October 2020 mentioned that they received their refund in December 2020, just two months after filing. This delay is not uncommon, as it takes time for the Income Tax Department to process returns and issue refunds.

Typical Timeline for Refunds

While not all refunds are issued immediately, the government typically processes tax returns on a first-come, first-served basis. According to various reports, individuals who submitted their returns earlier, especially in the first weeks of July, received their refunds before others who submitted later in July or August. This pattern suggests that the tax department gives priority to early filers.

Factors Affecting Refund Delays

Delays in refund processing can be attributed to several factors, including increased tax returns due to the extension of the return filing deadline. During the pandemic, the due date for filing returns was extended several times. The latest due date was extended to 31 December 2020, with refunds expected after this date. However, the actual processing of returns took longer than expected, leading to delays.

Uncertainty and Expectations

Several taxpayers have reported delays and uncertainty in receiving their refunds. Some express concern about the government's ability to manage the increased demand for refunds, suggesting that refunds might be held back and adjusted for future years. This is similar to the decision to freeze the Dearness Allowance (DA) for central government employees.

Government's Response and Plans

The government is aware of the situation and is looking into ways to expedite the process. A CNBC news item mentioned that from the previous Friday, refunds up to 1 crore (Indian Rupees) would be released immediately. However, the effectiveness of this plan and the status of pending refunds remain uncertain.

Expert Opinions and Personal Experience

Experts and tax professionals have noticed that refunds are often given to early filers. For example, Kalpita and others have shared their experiences, indicating that those who file their returns early tend to receive refunds sooner. There is also evidence that refunds for lower amounts from salary sources and other income categories are processed more quickly.

Future Expectations for Refunds

Given the current situation, taxpayers should be prepared for potential delays. While many have received their refunds, others are still waiting. The government's efforts to manage the backlog and release refunds as soon as possible are crucial.