The CBDT issued Circular No. 10/2025 dated July 28, 2025, which has relaxed the time limit for processing electronically filed income tax returns that were erroneously invalidated by CPC due to technical issues. Returns filed up to 31.03.2024, which were wrongly marked invalid, can now be processed under Section 143(1) of the Income-tax Act, 1961. Intimations must be issued by 31.03.2026. Refunds and related effects will follow, subject to PAN-Aadhaar linkage. This move addresses taxpayer grievances and ensures proper validation of affected returns across multiple assessment years.
It has been brought to the notice of Central Board of Direct Taxes (‘the Board’) that CPC-Bengaluru (CPC) has received grievances regarding erroneous invalidation, due to various technical reasons, while processing the returns filed electronically for different assessment years. 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.
The matter has been considered by the Board and it has been decided to relax the time-frame prescribed in second proviso 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 upto 31.03.2024 which have been erroneously invalidated by CPC shall now be processed. The intimation under sub-section (1) of section 143 of the Act in respect of processing of such returns shall be sent to the assesses concerned by 31.03.2026.
All subsequent effects under the Act, including issue of refund along with interest as applicable, shall also follow in these cases. 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 as laid down in Circular No.03/2023 dated 28.03.2023 vide F.No.370142/14/2022-TPL.
The Circular can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/07/CBDT-circular-10-2025-_-28.07.2025.pdf
