Income Tax Return (ITR) Processing Time

Income tax return filed is processed by the CPC - Central Processing Centre. Processing of ITR begins shortly after you E-verify your return. Usually, the ITR processing time is 15-45 days after e-verification.

Key Reasons for Delay in ITR Processing

• Expanded database with the Income Tax Department to cross verify most of the deduction and refund claims made.
• Unusually high refund claims as compared to preceding financial years.
• Incorrect details in the return or differences between your ITR and the Income Tax Department’s data.

Income Tax Return Filing and ITR Verification

To avoid late fees and penalties, taxpayers must submit their income tax returns within the due date. The due date to file ITR for FY 2025-26 is 31st July 2026 for ITR-1 & ITR-2. For taxpayers not requiring audit and filing ITR-3 & ITR-4 the due date is 31st August 2026. 

Taxpayers should make sure to e-verify within 30 days of filing their ITR. The department starts the Income Tax Processing only when the return has been successfully verified.  

What is The ITR Processing Time?

The ITR return processing time is typically between 15-45 days from the date of e-verification of the ITR. However, if the ITR filed is incorrect and has many discrepancies, ITR processing time is little longer and delayed. Hence, it is important to file ITR without any mistakes, false claims or misinformations.  

ITR Processing under Section 143(1)

Once the Income Tax Return is verified, the department proceeds to process it and sends an intimation under Section 143(1) of the Income Tax Act, 1961. This intimation, along with a message, is sent via email to the registered email ID and mobile number provided. 

Example: ITR for AY 2024-25 and PAN abcxxxxx1r have been processed at CPC. Intimation u/s 143(1) has been sent to your registered email ID. If not received, check the SPAM folder.

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 and the records available with the CPC and generates an intimation under section 143(1).

Status Post the ITR Processing

The ITR is processed with the following three scenarios: 

1. Refund determined: If the return filed by the taxpayer is found to be accurate and has a refund claim, the refund will be issued to them. Typically, the refund process takes around 15-45 days after the e-verification of the income tax return.
2. Demand determined: This means additional tax is payable. The tax department sends a demand intimation if there are any discrepancies in the taxes paid or credits claimed. The taxpayer is required to pay the demand within the specified time mentioned in the intimation under section 143(1) to avoid interest. 
3. No demand-No refund: When the department approves the information given by the taxpayer, the intimation will be 'No demand No refund.' This indicates that the taxpayer does not owe any taxes or interest, and there is no refund owed to the taxpayer.