ITR not yet Processed? Know the Deadline on Department for Processing Income Tax Returns and Refunds
The due date for filing AY 2025–26 ITRs itself was extended to September 15, 2025 (from July 31) by CBDT Circular No.6/2025, but the processing clock still runs from FY-end
The Income Tax Department has clarified the timeline for processing tax returns (ITRs) and issuing refunds for Assessment Year 2025–26 (FY 2024–25). By law, the I-T department must complete processing (and issue any intimation or refund) within 9 months of the end of the financial year in which the return is filed. In practice this means ITRs for FY 2024–25 should be processed by 31 December 2025 (The Income-tax Act’s Section 143(1) second proviso provides this 9-month limit, as updated in Finance Act 2025.)
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In recent weeks, the Central Board of Direct Taxes (CBDT) has also issued orders and circulars to extend or relax these deadlines for certain cases. For example, CBDT Circular No.10/2025 (28 July 2025) directs that electronically filed returns up to 31 March 2024 which were erroneously invalidated by CPC shall now be processed by 31 March 2026, with refunds (and interest) paid as applicable.
Likewise Circular No.07/2025 (25 June 2025) instructs that valid returns filed under condonation of delay up to 31 March 2024 be processed by 31 March 2026. (These relaxations were issued under CBDT’s powers in Section 119 of the Act.) In parallel, the CBDT has also addressed delays in processing.
An office order dated 9 June 2025 (u/s 119(2)(a)) extended the deadline for pending AY 2023–24 returns: all ITRs filed by July 31, 2023 (or belated by Dec 31, 2023) will now be processed by 30 November 2025. This means taxpayers with unprocessed returns from AY 2023–24 can expect intimation or refunds (or notices) by that date. The statutory 9-month deadline for AY 2023–24 was Dec 31, 2024, but CBDT’s order allows processing up to Nov 2025,
The due date for filing AY 2025–26 ITRs itself was extended to September 15, 2025 (from July 31) by CBDT Circular No.6/2025, but the processing clock still runs from FY-end.
Statutory Processing Deadline
Under Section 143(1) of the Income-tax Act, the Department must examine a return, correct any mathematical or apparent errors, recompute tax, and send an intimation (demand or refund) within nine months of the end of the relevant financial year. In practical terms, for ITRs of FY 2024–25 (filed in 2025), this means final processing should be done by 31 Dec 2025. After processing, any refund due is paid (with interest if applicable). If the Department fails to process the return within this period, it is time-barred from issuing any intimation under 143(1). Recent CBDT orders have invoked Section 119 to relax this strict timeline in special cases. For instance, Circular 10/2025 noted that some returns were invalidated for “various technical reasons,” causing the 9-month time-limit to lapse. CBDT therefore “relaxes the time-frame prescribed in second proviso to s.143(1)” and directs that these returns be processed now, with intimation sent by 31 Mar 2026. Similarly, Circular 07/2025 orders that returns filed under condonation up to 31 Mar 2024 (with unissued intimation) “shall be processed” with intimation by 31 Mar 2026. The circulars explicitly provide that “all subsequent effects…including issue of refund along with interest” will follow.CBDT Extensions and Clarifications
The CBDT has also issued updates on deadlines. In late May 2025, CBDT extended the ITR filing due date for AY 2025–26 from July 31 to September 15, 2025, giving taxpayers extra time to submit returns. However, the processing deadlines in Section 143 remain based on FY end (so returns filed by Sept 15, 2025 are still covered by the March-ending clock). In June 2025, a CBDT order u/s 119(2)(a) specifically extended the processing deadline for pending AY 2023–24 ITRs: it directed that all valid returns filed by July 31, 2023 (or condoned by Dec 31, 2023) be processed, and intimations sent by 30 Nov 2025. This means taxpayers awaiting old refunds or notices can expect them by that date. News reports note that this order explicitly “relaxes the time-frame” of sec.143(1) and mandates processing of those pending returns. In short, while the normal deadline is 9 months from FY-end, CBDT has recently issued orders to extend that deadline to late 2025 or early 2026 for various unprocessed returns. Taxpayers should watch for official communications, but the key takeaway is that any ITR filed (even if past the original time-limit) should be processed and any refund paid by the new extended dates.Why Some Returns Are Still Unprocessed
ITRs may remain unprocessed (and refunds unpaid) for several routine reasons. Common issues include:- Return not verified: Filing an ITR must be followed by e-verification (via Aadhaar OTP, netbanking, etc.) or sending the signed ITR-V. If verification is not completed within 30 days, the return is treated as invalid and no processing or refund occurs.
- Data mismatches: If the TDS or other tax credit claimed in the return does not match the department’s records (Form 26AS or AIS), the refund can be held up. Any discrepancy must be clarified before processing.
- Incorrect bank account: Refunds may bounce if the bank details (account number, IFSC) are wrong or outdated. In such cases, the refund can be reissued only after the taxpayer updates bank details and requests a refund reissue.
- Outstanding tax demands: The system automatically offsets refunds against any pending tax dues. If the taxpayer owes tax for earlier years, the refund is first applied to interest and tax outstanding.
- Technical issues or backlogs: Some delays are due to CPC (IT Processing Centre) workload or glitches. For example, recent guidance noted that returns “erroneously invalidated by CPC” are now being reprocessed. Complex returns or those flagged for review may simply take longer to process.
If delays persist beyond the statutory period, taxpayers may seek redress (e.g. raising an e-grievance). But often the cause is one of the above. Taxpayers should ensure their returns are fully verified and accurate, and keep bank details updated to avoid preventable holdups.
Checking ITR and Refund Status
Taxpayers can track processing and refund status via the official Income Tax e-Filing portal. The portal provides an “ITR Status” service (available pre- and post-login) that shows return details and processing updates. For example, taxpayers can:- Pre-login status check: Go to the e-Filing website, click “Income Tax Return (ITR) Status”, and enter your ITR acknowledgement number and mobile OTP. On success, the portal displays the current status of that return.
- View filed returns (post-login): After logging in, navigate to e-File → Income Tax Returns → View Filed Returns. This displays all returns filed by PAN. Here you can download your ITR-V acknowledgment, full ITR PDF, and Intimation Order once issued. The View Details option on each return shows its processing lifecycle (e.g. whether it is pending e-verification or already processed).
To check refund status, the e-Filing portal also offers guidance. Taxpayers (for refunds determined after 31 Mar 2023) should log in and go to e-File → View Filed Returns, where the refund status is displayed year-wise. (For older refunds determined on or before 31 Mar 2023, the old TIN-NSDL portal can be used.)
The official website’s “Status of Tax Refund” page details these steps. Throughout this process, ensure your PAN-Aadhaar linkage is valid – an “inoperative” PAN will block refunds until fixed. By using these online tools (and the Income Tax Department’s “Know Your ITR Status” feature), taxpayers can stay informed of their return’s processing stage and any refund credit without needing to call the tax office.
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