Central Board of Direct Taxes (CBDT), via Circular No. 10/2025 dated 28th July 2025, has granted a time relaxation under Section 119 of the Income-tax Act, 1961, for processing electronically filed income tax returns (ITRs) that were erroneously marked invalid by the Centralized Processing Centre (CPC), Bengaluru. These errors occurred due to technical issues and affected returns from various assessment years, including AY 2023–24, which were due for processing by 31st December 2024. The Board has decided to extend the processing window for such returns filed up to 31st March 2024. The concerned returns will now be validated and processed under Section 143(1), and the intimation must be issued to taxpayers by March 2026. Additionally, all relevant consequences under the Income-tax Act, including the issuance of refunds with applicable interest, will follow. However, in cases where PAN is not linked with Aadhaar, no refund will be issued, as per Circular No. 03/2023 dated 28th March 2023. The order has been communicated to senior officials and technical departments for appropriate implementation and updates on official portals.
No.225/30/2025/ITA-11
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
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Circular No. 10/2025 | Dated:28th July, 2025
Order u/s 119 of the Income-tax Act, 1961
Subject: Relaxation of time limit for processing of returns of income filed electronically which were incorrectly invalidated by CPC – reg.
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.
2. 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 assessees concerned by 03.2026.
3. 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 of 2023 dated 28th March, 2023 vide F.No.370142/14/2022-TPL.
4. Under Secretary to the Government of India
(Dr Castro Jayaprakash. T)
Under Secretary to the Government of India
Copy for information to:
i. Chairman (CBDT) and all Members of CBD
ii. All Pr.CCsIT/DsGIT
iii. DGIT(Systems), Delhi & DGIT (Systems), Bengaluru with request for further necessary action in the matter
iv. DGIT, Directorate of Admin & Taxpayers Services
v. ADG(Systems)-4 with request for uploading on department’s official website
vi. CIT (Media & TP), CBDT
Vii. JCIT, Database Cell – for uploading on IRS Officers website
Viii. Guard file
(Dr Castro Jayaprakash. T)
Under Secretary to the Government of India
