In a significant relief to taxpayers, the Central Board of Direct Taxes (CBDT) has extended the time limit for processing electronically filed income tax returns that were incorrectly marked as invalid by the Centralised Processing Centre (CPC), Bengaluru. The action resolves issues brought up by taxpayers from various assessment years whose returns were not processed because of technical difficulties.
For Assessment Year 2023–2024, the most recent deadline for processing such returns was December 31, 2024. In response, the Board has authorized the electronic processing of all such returns through March 31, 2024, in accordance with Section 119 of the Income-tax Act of 1961.
Key Highlights
- CBDT’s Circular 07/2025 extends processing time for condoned ITRs filed by March 31, 2024.
- Valid delayed returns must now be processed, with intimations issued by March 31, 2026.
By March 31, 2026, the impacted taxpayers will be notified under Section 143(1) of the Act after these returns have been verified and processed in compliance with the law.
Any subsequent refunds and interest will be applied. However, in line with Circular No. 03/2023, dated March 28, 2023, refunds will not be given if no PAN-Aadhaar linkage is discovered.
Caspar Prakash T, Under Secretary to the Government of India, issued the directive, and all relevant authorities have been asked to ensure its implementation.
Also Read: New Tax Rules: How Form 10-IEA Affects Your Regime Choice
Tax filing deadline extended
The Assessment Year 2025 income tax return (ITR) filing window is currently open, and there have been a number of notable changes made, chief among them the treatment of capital gains. The updated filing requirements, deadlines, and slab rates announced in Budget 2024 should be carefully reviewed by taxpayers.
Since salaried workers and Hindu Undivided Families (HUFs) are exempt from auditing requirements, the ITR deadline has been rescheduled to September 15, 2025, to allow them more time to adjust to the new rules. Professionals and companies with auditable accounts must file by October 31, 2025. Late and amended returns may be filed until December 31, 2025, but there will be penalties and interest.
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