CBDT Extends Time to Process Invalidated ITRs by CPC
- Blog|News|Income Tax|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 30 July, 2025
Latest from Taxmann
Circular No. 10/2025, dated 28-07-2025
The Central Board of Direct Taxes (CBDT) has acknowledged receiving several grievances from taxpayers regarding the erroneous invalidation of electronically filed Income Tax Returns (ITRs) by the Centralized Processing Centre (CPC) in Bengaluru. These invalidations affected returns for multiple assessment years, including AY 2023–24, where the statutory time limit for processing under Section 143(1) lapsed on December 31, 2024. The technical errors, reportedly beyond the control of taxpayers, have left many returns unprocessed despite timely filing.
Recognizing the widespread nature of this issue and the genuine hardship caused to taxpayers, the CBDT has stepped in to provide relief. Through its latest circular, the Board has decided to relax the statutory time limit for processing those returns that were rejected by the CPC due to technical or procedural anomalies. This move is intended to ensure that valid returns are not left unprocessed merely because of system-generated rejections or data mismatches that were not attributable to the assessees.
As per the new directions, all electronically filed income tax returns up to March 31, 2024, that were wrongly treated as invalid by the CPC, shall now be considered for processing. This includes returns filed for earlier assessment years, subject to the condition that the invalidation was purely due to errors not related to taxability or filing defaults. The aim is to rectify these procedural lapses and enable affected taxpayers to receive appropriate refunds or intimation orders as per law.
Furthermore, the intimations under Section 143(1) for these returns—once reprocessed—must be sent to the concerned assessees on or before March 31, 2026. The relaxation provides ample time for the tax department to reassess and process these returns without compromising procedural integrity. Taxpayers are advised to monitor their accounts and stay updated with any communication from the CPC regarding the reprocessing of previously invalidated returns.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
