Will the extension affect the processing time of my income tax refund?

Not necessarily. Extension is only about giving more time. Refunds depend on how accurate your return is. If you made mistakes, then refund will surely get delayed. If all is correct, refund comes on time, extension or no extension.

It depends. Normally, early filers get quicker refunds. When everyone rushes at the end, processing can slow down. But the IT department has improved automation in recent years, so delays are less compared to earlier.

I filed in August last year when deadline was extended, and my refund still came within 15 days. So I don’t think extension always delays refunds. The processing depends more on whether your details match properly with Form 26AS and AIS.

Yes, indirectly. When more people file late, the system has to process a huge number of returns in a short time. This may delay refunds, especially for those filing closer to the last date. If you want faster refund, file early even if deadline is extended.