Small Tax Refunds Are Released Faster — Here’s Why
Author :Juhi Pandey | in
Category : Updates - Income Tax Published : 26-09-2025
Updated : 11-10-2025
Waiting for your income tax refund can be frustrating, especially when it seems like others are getting theirs sooner. Interestingly, the size of your refund could be the reason for the delay. Taxpayers claiming smaller amounts—typically under Rs 10,000—often receive their refunds faster than those with larger claims. The explanation lies in the simplicity of processing smaller, straightforward returns versus the extra scrutiny larger refunds attract.
The key points are explained below for better understanding, which is as follows
- Smaller Refunds are simpler: The refunds under Rs 10,000, especially for salaried individuals with only TDS adjustments, are often credited faster. These returns are straightforward, requiring minimal review, allowing the tax department to process them quickly.
- According to Tarun Garg, Director, Deloitte India, “Smaller refunds are usually processed faster due to materiality thresholds of the tax department. Small refunds are usually processed within a few days of filing the tax return.”
- Larger Refunds Required More Review: The large amount refunds, particularly those significantly higher than the previous year, trigger the extra check. The tax department reviews these returns carefully to ensure accuracy and prevent errors or fraud. This additional verification process naturally takes more time, leading to delays.
- What Taxpayers Should Keep in Mind Experts recommend staying patient, as the department gradually clears pending refunds. Processing speed depends on the complexity of the return, not just the timing of filing.
Conclusion
If your refund is modest and under Rs 10,000, there’s a good chance it will reach your bank account sooner. Simpler claims sail through the system faster, while larger refunds undergo thorough checks, which can take longer.
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