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Income tax return filed is processed by the CPC – Central Processing Unit. Presently, CPC in Bangalore is responsible for carrying out all primary assessments.
The CPC unit of Income tax department takes up the ITR for processing i,e cross checks the details reported in the ITR with the information in hand and sends a notice of intimation under section 143 (1) to the registered email address.
The Income Tax Department processes the income tax return only after they are filed and successfully verified by the taxpayer. The taxpayers are advised to submit their return on time for the speedy processing of the returns.
CBDT has issued a circular on 11th January 2022 extending the timelines for certain direct tax compliances for AY 2021-22.
1. ITR filing due date extension:
i) ITR filing for taxpayers covered under tax audit is extended to 15th March 2022
ii) ITR filing for transfer pricing cases is extended to 15th March 2022
2. Furnishing audit report:
i) Due date to furnish the audit report as per the Income Tax Act is extended to 15th February 2022
ii) Due date to furnish the audit report for transfer pricing cases is extended to 15th February 2022
The taxpayers should file their income tax returns by the due date to avoid any late fees and the penalty. The ITR processing starts only with the filing of the return; it can be on time or after the due date. However, it is also advisable to file the returns on time for quick processing.
The department starts the Income Tax Processing only when the return has been successfully verified.
The taxpayer has to verify the return by sending the ITR-V (Acknowledgement) after signing it with a blue ink within 120 days from the date of filing the return.
ITR-V will be physically sent to the Central Processing Center (CPC). Once they receive it, CPC will send an acknowledgement on the registered email ID of the taxpayer.
The taxpayer should correctly mention the email address in the return form as all the communications between him, and the department will take place through that email ID alone. Also, the taxpayer can e-verify the return after filing it instead of sending the acknowledgement physically to the department. It can be done through any one of the following means:
After the verification of the ITR, the department processes the income tax return and sends the intimation under Section 143(1) of the Income Tax Act, 1961 once the Income Tax Processing is done. The intimation will be sent via an email along with a message to the registered email ID and the mobile number respectively.
CPC processes each e-filed return and generates intimation u/s 143(1). The department compares the data provided in the return by the taxpayer in addition to the records available with the CPC and generates an intimation under section 143(1).
The intimation also carries the detailed calculation of the tax as computed by the taxpayers and the income tax department. The whole process generally takes 30- 45 days from the day of e-verification or the receipt of ITR-V by the CPC.
Taxpayers are required to decode the ITR intimation. Following are three possible scenarios that the taxpayer may need to understand :
If you have filed your income tax return and not received income tax refund within a reasonable time, first confirm if you have verified your income tax return online or offline. ITR filing is incomplete and is not processed till it is e-verified. In case ITR V is verified, you can follow up with CPC on their helpline numbers 1800 103 4455 (or) +91-80-46605200 from Monday to Friday 8:00 am to 8:00 pm. In case of refunds of previous years, you need to write a letter to the Assessing officer of your jurisdiction stating reasons for delay / non receipt of refund.
Please login to e filing website,using PAN, password, DOB and captcha. Go to “My account > refund / demand status”. A screen will open displaying the status.
When your income tax paid is more than your income tax liability for a given year, the excess amount paid is refunded by the Income tax department. This refunded amount is known as “Income tax refund”
Yes, it is necessary to file an income tax return to claim the refund.
Income tax department processes the verified ITR after the same is filed. In case you have claimed a refund in the ITR, then there can be various status reflecting and the actions that your are required to take as detailed below: