The deadline for filing income tax returns (ITR) for the no-audit category ended on September 16, 2025. While many have already received their refunds, a large number are still waiting, and complaints about delays are flooding social media.
Taxpayers have shared their frustration online, with some saying they filed and verified their ITRs as early as June but are still waiting for their refunds. This has led to a common question: does the size of your refund affect how quickly you get it?
WHY SMALLER REFUNDS MOVE FASTER
According to tax experts, the rules do not set any limit on how large a refund can be, and the process is broadly the same for all taxpayers. However, in practice, refunds involving smaller amounts, especially below Rs 10,000, tend to get credited sooner.
This is because these cases are often straightforward. For example, salaried individuals with only TDS adjustments and no complicated deductions usually see faster processing. Their returns require less review, so the refund is issued 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.”
WHY LARGER REFUNDS TAKE LONGER
On the other hand, higher refunds generally attract more scrutiny. If a taxpayer is claiming a refund much larger than in previous years, the department often initiates extra scrutiny.
This is done to ensure all claims are genuine and accurate, and it is a key reason why smaller and simpler refunds tend to reach taxpayers faster. Larger claims require more checks, which means more waiting for those affected.
WHAT TAXPAYERS SHOULD KNOW
Experts advise that patience is key. While smaller refunds often arrive sooner, larger ones may take more time because of additional scrutiny. The tax department is expected to clear pending cases gradually, though the pace may vary depending on the complexity of each return.
So, if your refund is modest and under Rs 10,000, chances are you could see it in your bank account earlier than others.
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