Income Tax Department Extends Deadline for Erroneously Invalidated ITRs to March 2026!
Thank you for reading this post, don't forget to subscribe!New Delhi, July 29, 2025 – Good news for taxpayers! The Income Tax Department, through the Central Board of Direct Taxes (CBDT), has extended the deadline for processing Income Tax Returns (ITRs) that were wrongly invalidated due to technical glitches. This significant relief, announced in a circular on July 28, 2025, aims to resolve issues for many who faced delays in refunds and other processes.
The CBDT acknowledged receiving numerous complaints about ITRs filed electronically up to March 31, 2024, that were incorrectly marked invalid by the Centralised Processing Centre (CPC) in Bengaluru. Many taxpayers were stuck in limbo, as previous deadlines, including December 31, 2024, for Assessment Year (AY) 2023-24, had already passed.
To fix this, the CBDT has used its powers under Section 119 of the Income-tax Act, 1961, to relax the time limit. This means all such affected ITRs will now be processed, and taxpayers will receive an intimation by March 31, 2026.
Any eligible refunds, along with interest, will be issued as per the law. However, it’s crucial to remember that if your PAN and Aadhaar are not linked, refunds will not be released. This is in line with the previous circular dated March 28, 2023. So, if you haven’t linked them yet, now’s the time!
This extension is a welcome relief for taxpayers who were unfairly impacted by technical errors, ensuring their valid returns are processed and they receive their due refunds.
