ITR Filing Relief: CBDT Extends Deadline to Process Error-Rejected E-Filed Income Tax Returns
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In a welcome move for taxpayers across India, the Central Board of Direct Taxes ( CBDT ) has announced a major relief for those whose income tax returns (ITRs) were wrongly marked as invalid by the Centralised Processing Centre (CPC). The CBDT, under the Ministry of Finance, issued a directive on 28 July 2025, extending the deadline for processing such returns filed electronically up to 31 March 2024.
What’s the Relief About?
Many taxpayers faced issues where their e-filed returns were mistakenly invalidated due to technical errors during CPC’s processing. Recognising these grievances, the CBDT has decided to act under Section 119 of the Income Tax Act, 1961, to extend the time limit for processing these returns.
“The matter has been considered by the Board and it has been decided to relax the timeframe prescribed in second provison to sub-section (1) of section 143 of the Income-tax Act, 1961 (the Act) in exercise of its powers under section 119 of the Act. The Board hereby directs that returns of income filed electronically up to 31.03.2024, which have been erroneously invalidated by CPC, shall now be processed,” said CBDT in the release.
Why Was the Extension Needed?
Several taxpayers had approached the CPC in Bengaluru with complaints that their ITRs were declared invalid despite timely and proper filing. The previous deadline for processing such returns - particularly for Assessment Year 2023–24 - was 31 December 2024. But with numerous unresolved cases, the Board stepped in to extend the window.
“The time period for processing these returns has lapsed, latest being 31.12.2024 for AY 2023-24. Therefore, these returns need to be validated and processed as per law,” said the tax body in the statement.
What Happens Next?
The Income Tax Department will now reprocess these previously rejected returns. Taxpayers can expect an official intimation under Section 143(1) of the Income Tax Act by 31 March 2026. In cases where refunds are due, they will be issued - along with interest wherever applicable.
“In those cases where PAN-Aadhaar linkage is not found, refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made,” said the Income Tax Department.
ITR Filing Deadline for FY 2024-25 Extended
Meanwhile, those preparing to file their returns for the current financial year have more time on hand. The Income Tax Department has extended the deadline for filing ITR for Assessment Year 2025–26 to 15 September 2025.
Documents to Keep Ready Before Filing ITR
Taxpayers are advised to keep the following documents handy before filing:
This move from the CBDT offers a much-needed chance for affected taxpayers to have their valid returns acknowledged - and ensures that honest filers are not penalised due to procedural glitches.
What’s the Relief About?
Many taxpayers faced issues where their e-filed returns were mistakenly invalidated due to technical errors during CPC’s processing. Recognising these grievances, the CBDT has decided to act under Section 119 of the Income Tax Act, 1961, to extend the time limit for processing these returns. “The matter has been considered by the Board and it has been decided to relax the timeframe prescribed in second provison to sub-section (1) of section 143 of the Income-tax Act, 1961 (the Act) in exercise of its powers under section 119 of the Act. The Board hereby directs that returns of income filed electronically up to 31.03.2024, which have been erroneously invalidated by CPC, shall now be processed,” said CBDT in the release.
Why Was the Extension Needed?
Several taxpayers had approached the CPC in Bengaluru with complaints that their ITRs were declared invalid despite timely and proper filing. The previous deadline for processing such returns - particularly for Assessment Year 2023–24 - was 31 December 2024. But with numerous unresolved cases, the Board stepped in to extend the window.“The time period for processing these returns has lapsed, latest being 31.12.2024 for AY 2023-24. Therefore, these returns need to be validated and processed as per law,” said the tax body in the statement.
What Happens Next?
The Income Tax Department will now reprocess these previously rejected returns. Taxpayers can expect an official intimation under Section 143(1) of the Income Tax Act by 31 March 2026. In cases where refunds are due, they will be issued - along with interest wherever applicable. However, there’s one major condition.
“In those cases where PAN-Aadhaar linkage is not found, refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made,” said the Income Tax Department.
ITR Filing Deadline for FY 2024-25 Extended
Meanwhile, those preparing to file their returns for the current financial year have more time on hand. The Income Tax Department has extended the deadline for filing ITR for Assessment Year 2025–26 to 15 September 2025. Documents to Keep Ready Before Filing ITR
Taxpayers are advised to keep the following documents handy before filing: - PAN and Aadhaar cards
- Bank passbooks
- Tax deduction certificates (Form 16, 16A)
- Annual Information Statement (AIS) & Taxpayer Information Summary (TIS)
- Investment proofs and deduction details
- Capital gains and asset statements
- Documents related to foreign income and assets (if applicable)
- Past tax returns and audit reports (for business or professional income)
This move from the CBDT offers a much-needed chance for affected taxpayers to have their valid returns acknowledged - and ensures that honest filers are not penalised due to procedural glitches.
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