CBDT extends deadline for processing old ITRs; refunds or tax demand notices expected by Nov 30

The Central Board of Direct Taxes (CBDT) has relaxed the timeline for processing pending ITRs for AY 2023-24 (FY 2022-23) till November 30, 2025. This decision is expected to benefit taxpayers who have pending income tax refunds even after filing their ITR before the due date for AY 2023-24.

"Central Board of Direct Taxes ('the Board'), in exercise of its powers under section 119(2)(a) of the Income-tax Act,1961 (the Act), hereby relaxes the time-frame prescribed in second proviso to sub-section (1) of section 143 of the Act and directs that electronically filed valid returns of income filed u/s 139 of the Act for Assessment Years (AY) 2023-24, for which date of sending intimation under sub-section (1) of section 143 of the Act has lapsed, shall be processed now and intimation under sub-section (1) of section 143 of the Act shall be sent to the assessee concerned by 30.11.2025," the CBDT said in an order dated June 9, 2025.

As per the notification, the tax department can now process such pending ITRs and send intimations till November 30. This may lead to an issue of tax refund to eligible taxpayers for AY 2023-24, along with interest. However, it may also result in a new tax demand notice along with interest if a taxpayer is found to be having some taxes due for FY 2022-23. In case there is no refund or pending tax, the ITR will be simply processed.

However, a pending return will not be processed if it has been selected for scrutiny or it is unprocessed because of the taxpayer. The CBDT has said that the relaxation will not be applicable in case of the following types of returns:

a. Returns selected in scrutiny

b. Returns remain unprocessed for any reason attributable to the assessee.

No refund for unlinked PAN-Aadhaar

The CBDT also said that no refund will be made in case the taxpayer of a pending ITR for AY 2023-24 has not linked PAN-Aadhaar.

"In cases where PAN-Aadhaar is not linked, 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.03/2023 dated 28.03.2023 vide F.No.370142/14/2022-TPL," CBDT said.