Just like taxpayers have deadlines to file their income tax returns, the Income Tax Department also works against a fixed timeline. Once an Income Tax Return (ITR) is filed either within the due date or as a belated return by 31 December 2025 the Centralised Processing Centre (CPC) is required to process it within a specified period. For the current assessment year, this means the CPC must complete the processing by 31 December 2026.
ITR processing deadline unchanged despite filing extension
If your Income Tax Return (ITR) is not processed by 31 December 2026, or within the prescribed deadline for earlier assessment years, the Centralized Processing Centre (CPC) loses its legal right to process that return.
It’s important to note that although the ITR filing deadline was extended from 31 July to 16 September this year, the processing timeline for the CPC has not been extended. This means the CPC must still complete ITR processing within the original statutory time limit, regardless of the extended filing window.
Missed ITR processing deadline? Here’s what it means for taxpayers
Tax experts say missing the ITR processing deadline has clear consequences for both taxpayers and the tax department. According to Balwant Jain, if the Centralized Processing Centre (CPC) fails to process a return within the prescribed time limit, the acknowledgement issued at the time of filing effectively becomes the final communication under Income Tax Act. This was reported by Livemint.
“Mandatorily, they are required to process it within nine months. The acknowledgement that comes during filing ITR will be treated as the final intimation for processing,” he told Livemint.
ITR deemed accepted if CPC misses processing deadline
Explaining how the timeline is calculated, Manikandan S, Manager–Taxation at ClearTax, said the processing window is counted as nine months from the end of the financial year in which the return is filed. For AY 2024–25, this means the deadline for processing the ITR is December 31, 2025, as highlighted in the report.
“As per the provision of section 143, if the CPC misses the 9 month deadline from the end of the financial year in which the return is filed, the return is deemed accepted as filed, and no adjustments(demands) can be made thereafter by the CPC system,” Manikandan told Livemint.
No explanation required if ITR misses processing deadline
Experts note that the Centralized Processing Centre (CPC) is not legally bound to explain why an Income Tax Return has not been processed within the prescribed timeline.
Tax and investment expert Balwant Jain clarified that the income tax department is also under no obligation to formally notify taxpayers if their return remains unprocessed even after crossing the statutory deadline.
How taxpayers can claim refunds if ITR processing is delayed
Even if an Income Tax Return is not processed on time, the Income Tax Department is still legally responsible for issuing valid refunds. Tax expert Balwant Jain said taxpayers can begin the refund process by filing an online grievance on the income tax e-filing portal.
Sharing a similar view, Manikandan S of ClearTax said that taxpayers whose returns are still pending can raise a grievance ticket on the Income Tax portal to claim their refund, along with applicable interest. Alternatively, they can approach their jurisdictional assessing officer to seek the refund, as noted in the report. In cases of prolonged delay, taxpayers also have the option to pursue legal remedies.
