Synopsis: CBDT has provided a major relief by extending the deadline to process income tax returns filed electronically till March 31, 2024, that were mistakenly marked invalid by CPC. The move addresses numerous grievances and ensures refunds and interests are duly processed.
In a significant step aimed at addressing taxpayer grievances, the Central Board of Direct Taxes (CBDT) has announced a major relaxation concerning the processing of Income Tax Returns (ITRs) filed electronically up to March 31, 2024. These returns were erroneously marked as “invalid” by the Centralized Processing Centre (CPC), Bengaluru, due to technical errors.
Taxpayers had complained that their valid e-filed returns were rejected for reasons beyond their control. Since the statutory time limit for processing many of these returns — especially for Assessment Year 2023-24 — had already expired (on December 31, 2024), CBDT has invoked its powers under Section 119 of the Income-tax Act, 1961, to offer relief.
CBDT clarified through a circular that these previously invalidated returns will now be processed, and intimation under Section 143(1) will be issued to the respective taxpayers by March 31, 2026. This action ensures that any applicable refund and interest will be paid, bringing transparency and fairness to the process.
However, the department has made it clear that in cases where PAN is not linked with Aadhaar, no refund will be issued until the linkage is completed.
This decision not only simplifies the tax filing process but also reaffirms CBDT’s commitment to taxpayer-friendly administration.
Disclaimer: The information provided in this article is based on official government communication. For specific financial or tax advice, please consult with a certified tax professional or visit the official Income Tax India portal.
