July 29, 2025

The Central Board of Direct Taxes (CBDT) has taken a significant step to support taxpayers by relaxing the time limit for processing certain income tax returns. These returns, filed electronically, were wrongly invalidated by the Central Processing Centre (CPC) located in Bengaluru due to various technical reasons that were beyond the control of assessees. This decision was formalized in a circular issued by the CBDT on Monday. According to the new guidelines, any electronic returns that were filed up until March 31, 2024, and had been incorrectly invalidated, will now be processed correctly. The CBDT has set a new deadline for sending intimations regarding these returns to assessees, which is set for March 31, 2026. This move will prove beneficial as it guarantees that qualified assessees will be able to receive their refunds, including any applicable interest due on those refunds. However, it is important to note that refunds will not be disbursed if the linkage between the Permanent Account Number (PAN) and Aadhaar is not established, following the current regulations. The CBDT has underscored the necessity for all relevant authorities and departments to adhere strictly to these directives and commence processing the affected returns as indicated. This timely intervention by the CBDT aims to enhance taxpayer confidence and ensure that compliant tax processes are maintained, allowing assessees to benefit from timely refunds that are so crucial for personal finances. The easing of this restriction not only helps assessees affected by administrative errors but also reinforces the CBDT’s commitment to facilitating smoother tax compliance in the digital age. It further highlights the importance of maintaining accurate linkages between tax identification numbers, which contribute to a streamlined process for refunds and tax assessments. Moving forward, taxpayers are encouraged to stay informed and ensure their documents, including PAN and Aadhaar, are properly linked to avoid any delays in potential refunds. By actively engaging with these updates, individuals can better navigate the complexities of the tax system during these transitions.

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Tags: Cbdt, Income tax, Returns, Cpc-bengaluru, Pan-aadhaar linkage,