ITR processing deadline extended for these ITRs

In a move set to bring significant relief to taxpayers, the CBDT (Central Board of Direct Tax), in a circular issued today, has extended the deadline for the processing of ITRs that were electronically filed up to March 31, 2024, but had been wrongly invalidated by Income Tax Department Centralized Processing Centre (CPC), Bengaluru.

According to the circular, CBDT had received various representations that CPC- Bengaluru (CPC) has gotten grievances regarding erroneous invalidation, due to various technical reasons, while processing the returns filed electronically for different assessment years. The time period for processing these returns has lapsed, latest being 31.12.2024 for AY 2023-24. Therefore, these returns need to be validated and processed as per law.

“The matter has been considered by the Board and it has been decided to relax the time- frame prescribed in second proviso to sub-section (1) of section 143 of the Income-tax Act, 1961 (the Act) in exercise of its powers under section 119 of the Act. The Board hereby directs that returns of income filed electronically up to 31.03.2024 which have been erroneously invalidated by CPC shall now be processed. The intimation under sub-section (1) of section 143 of the. Act in respect of processing of such returns shall be sent to the assessees concerned by 31.03.2026”, it adds .

All subsequent effects under the Act, including issue of refund along with interest as applicable, shall also follow in these cases. In those cases where PAN-Aadhaar linkage is not found, refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made as laid down in Circular No.03/2023 dated 28.03.2023 vide F.No.370142/14/2022-TPL.

Says CA Mohit Gupta, “The move, under Section 119 of the Income-tax Act, 1961, relaxes the time limit for processing such returns, allowing intimation under Section 143(1) to be sent by 31st March 2026. However, refunds will not be issued where PAN-Aadhaar linkage is not completed, as per Circular No. 03/2023”

Notably, if you fail to file your ITR by the due date, which is September 15, 2025 for AY 2025-26, you can still file a belated return before the 31st December of the relevant assessment year. However, if taxpayers miss out on this deadline as well, they can file an updated return within 4 years from the end of the assessment year in concern. Also, as per income tax law, the tax department has the power to process an duly filed ITR on or before the end of 9 months from the end of the financial year for which the ITR was filed.