CBDT Extends Deadline to Process ITRs Marked Invalid Due to CPC Error, Fresh Intimations to Be Issued
CBDT allows processing of validly filed ITRs marked invalid due to system errors, with fresh intimations to be issued by 31 March 2026
The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, issued Circular No. 10/2025 dated 28 July 2025, granting a relaxation of the time limit for processing certain income tax returns that were wrongly marked as invalid by the system. According to the circular, several income tax returns that were electronically filed up to 31 March 2024 were inadvertently treated...
The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, issued Circular No. 10/2025 dated 28 July 2025, granting a relaxation of the time limit for processing certain income tax returns that were wrongly marked as invalid by the system.
According to the circular, several income tax returns that were electronically filed up to 31 March 2024 were inadvertently treated as invalid by the Centralized Processing Centre (CPC), Bengaluru, due to system-related issues.
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Because of this error, those income tax returns (ITRs) were not processed and taxpayers either received no response or had their filings rejected, despite submitting them correctly and on time.
To fix this mistake, the CBDT has now allowed a special window for the processing of such returns under Section 143(1) of the Income Tax Act, 1961. These returns will now be reprocessed, and fresh intimations will be issued by 31 March 2026 to all affected taxpayers.
The circular further clarifies that if any refunds are due as a result of this processing, they will be issued along with applicable interest. Taxpayers are reminded that no refund will be released if their PAN is not linked to Aadhaar, in line with CBDT Circular No. 03/2023 dated 28 March 2023.
This relief is granted to remove genuine hardship faced by taxpayers due to technical/system errors, and it applies only to cases where returns were validly filed but marked invalid incorrectly.
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