Indian taxpayers now have a crucial deadline to hold the tax department accountable. The Centralised Processing Centre (CPC) of the Income Tax Department is legally bound by a strict timeline to process filed income tax returns (ITRs). If you submitted your ITR for the current assessment year on time, or file a belated return by December 31, 2025, the CPC must complete its processing by December 31, 2026.
What Happens If the CPC Misses the ITR Processing Deadline?
According to the rules, if the CPC fails to process an ITR by the stipulated date, it forfeits its right to make any adjustments to that return. This deadline applies to the relevant dates for previous assessment years as well. Notably, while the ITR filing deadline for individuals was extended to September 16 this year, the processing deadline for the CPC remains unchanged.
Tax experts clarify the legal implications. Balwant Jain, a tax and investment expert, states that the CPC is mandatorily required to process returns within nine months. "The acknowledgement you receive after filing ITR will be treated as the final intimation under Section 143 of the Income Tax Act if they do not process it," he explained.
CA Manikandan S, Manager of Taxation at ClearTax, provided further detail. The time limit to finish processing a return is nine months from the end of the financial year in which it was filed. For Assessment Year (AY) 2024-25, this deadline falls on December 31, 2025. "As per the provision of section 143, if the CPC misses this 9-month deadline, the return is deemed accepted as filed, and no adjustments or demands can be made thereafter by the CPC system," Manikandan said.
How Can Taxpayers Claim Their Refund If Processing is Delayed?
Even if the CPC misses its deadline, taxpayers are not left without recourse. The income tax department is still obligated to issue a valid refund. Balwant Jain advises that users can raise a grievance online through the e-filing portal by logging into their account to claim such refunds.
Manikandan concurred with this approach. "Taxpayers whose returns have still not been processed can raise a grievance ticket on the Income Tax portal to claim their refund, plus interest. Alternatively, they can approach their Jurisdictional Assessing Officer to claim the refund," he suggested.
Vivek Jalan, Partner at Tax Connect Advisory Services LLP, provided a legal perspective. He confirmed that if a refund for an ITR from FY 23-24 is not processed by December 31, 2025, the CPC loses its right to make adjustments. Taxpayers can legally claim the refund by approaching their Jurisdictional Assessing Officer (AO). "It is to be noted that the said refund claim should be filed along with interest under Section 244A of the Income Tax Act," Jalan added. He further noted that after 2-3 reminders, if the refund remains unprocessed, a taxpayer can approach the High Court through a writ petition.
Important Caveats for Taxpayers
Experts highlight two critical points. First, the CPC wing is not statutorily bound to explain the reason for any delay in processing returns. Second, as Balwant Jain pointed out, the CPC is also not legally required to inform a taxpayer if their return has not been processed within the stipulated time. This places the onus on the taxpayer to track their refund status and take proactive steps if necessary.
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Taxpayers are advised to consult a qualified tax professional or refer to the official website of the Income Tax Department for accurate and up-to-date guidance before filing their returns.
