CBDT extends Deadline to process Erroneously Invalidated ITRs
CBDT Provides Relief for Invalidated ITRs Filed Electronically – Time Limit Extended for Processing
The Central Board of Direct Taxes (CBDT) has issued a fresh directive under Section 119 of the Income-tax Act, 1961, offering relief to taxpayers whose electronically filed income tax returns (ITRs) were mistakenly treated as invalid by the Centralized Processing Centre (CPC) in Bengaluru.
Background
Several taxpayers had submitted grievances pointing out that their validly filed ITRs for various assessment years were wrongly invalidated by the CPC due to technical glitches. Unfortunately, the statutory window to process these returns had already expired—most recently on 31st December 2024 for Assessment Year (AY) 2023–24—leaving affected taxpayers without redress.
CBDT’s Relaxation Order
Recognizing the issue, the CBDT has stepped in and exercised its authority under Section 119 of the Act to grant a relaxation of the processing time limit prescribed under the second proviso to Section 143(1).
As per the order:
- All electronically filed ITRs up to 31st March 2024 that were erroneously marked invalid by the CPC will now be revalidated and processed.
- The processing of such returns, including issuance of intimations under Section 143(1), must be completed by 31st March 2026.
Consequential Actions
Upon successful processing, all consequential actions under the Income-tax Act will follow. This includes:
- Issuance of refunds (if applicable), along with any interest due as per provisions of the Act.
- However, as clarified in CBDT Circular No. 03/2023 dated 28th March 2023, no refund will be issued in cases where the PAN and Aadhaar are not linked.
What Taxpayers Should Know
This order brings much-needed relief to taxpayers affected by systemic errors. It ensures that genuine ITRs previously rejected due to technical faults will now be duly processed, and any rightful tax refunds will be paid out—subject to PAN-Aadhaar compliance.
Final Note
All concerned officials and stakeholders are advised to take note of this directive for appropriate and timely compliance.
Costly ITR Mistakes to Avoid in 2025 (Save Money):
https://www.youtube.com/shorts/xeTgjvfEt6o
Also Read: New Income-tax Bill 2025 Navigator
Also Read:
- Recommendations of the 55th Meeting of the GST Council
- Changes in GST and Income Tax during the Financial Year 2024-25
- TDS and TCS provisions applicable from April 1, 2025
- Rationalizing TDS: A Deep Dive into Budget 2025’s Proposals
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