NRI Income Tax & Compliance

ITR Processing Time FY 2025-26: Status & Refund Updates

ITR Processing Time

The Centralized Processing Centre (CPC) unit of the Income Tax Department processes the ITR. It verifies the details mentioned in the ITR with the available information and, under Section 143(1), sends an intimation notice to the registered email address. At present, the CPC in Bengaluru is responsible for carrying out primary assessments.

Further, once you e-verify your returns, your ITR processing begins shortly. Generally, the filed ITR is processed within 20–45 working days of e-verification, although timelines may vary depending on the case.

Want to know in detail about the ITR processing time? Read the blog and get all the required information.

Key Takeaways
  • ITR processing at CPC, Bengaluru, starts only after you successfully e-verify your return or the ITR-V form is received by the Income Tax Department.
  • Generally, ITR processing takes 20–45 working days from the e-verification date.
  • Errors or mismatches between your ITR data and the information available with the Income Tax Department are common reasons for delays.
  • After processing under Section 143(1), you receive an intimation notice via email containing the final tax computation.
  • If you receive any notice regarding discrepancies, respond promptly.
Key Reasons for Delay in ITR Processing FY 2025-26
  • Expanded databases with the Income Tax Department to cross-check tax deductions and refund claims.
  • Higher-than-usual tax refund claims compared to previous financial years.
  • Incorrect details in the ITR or mismatches between taxpayer data and departmental records.

Income Tax Return Filing and ITR Verification

To avoid penalties and late fees, taxpayers should file their tax returns within the prescribed deadline. Once you file and verify your ITR, the return is processed whether it is filed before or after the due date. However, filing early generally helps in faster processing.

After filing the ITR, you must verify it within 30 days, either through e-verification methods or by sending the signed ITR-V acknowledgment to CPC, Bengaluru. Processing begins only after successful verification.

This was all about income tax return filing and verification. Moving ahead, let’s understand ITR processing under Section 143(1).

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ITR Processing Under Section 143(1)

Once the ITR is verified, the Income Tax Department processes the return and sends an intimation under Section 143(1) of the Income Tax Act, 1961. This intimation is sent to your registered email ID and sometimes via SMS notification.

For example, your ITR for Assessment Year (AY) 2026-27 linked to your PAN may be processed at CPC, Bengaluru, and an intimation under Section 143(1) will be issued. If you do not see it in your inbox, check your spam or junk folder.

Each e-filed ITR is processed by CPC, where the details submitted by the taxpayer are compared with records available with the department. After this comparison, an intimation under Section 143(1) is generated.

The intimation contains a detailed tax computation as per both the Income Tax Department’s records and the taxpayer’s submitted data. Typically, this process takes 20–45 working days from the date of e-verification or receipt of ITR-V by CPC.

So, this was about ITR processing under Section 143(1). Let’s now understand the possible statuses after processing.

Status Post the ITR Processing

There are three possible outcomes in the intimation under Section 143(1):

No Demand, No Refund: If the information filed matches the department’s records, the status will be “No Demand, No Refund,” meaning no additional tax is payable and no refund is due.

Refund Determined: If the return is correct and a refund is due, it will be issued. Refunds are usually processed after ITR processing, typically within a few weeks after e-verification, though timelines can vary.

Demand Determined: This means additional tax is payable due to discrepancies in taxes paid, deductions, or reported income. The demand must be addressed within the time specified in the intimation notice.

Further, you can receive the above-mentioned possible status after the ITR processing.

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Final Thoughts

ITR processing generally takes 20–45 working days from the date of e-verification, although timelines may vary depending on verification checks and case complexity. After processing, you receive an intimation under Section 143(1) of the Income Tax Act, 1961 via email or SMS indicating one of three outcomes: No Demand No Refund, Refund Determined, or Demand Determined.

Further, if you received an intimation notice from the ITR department and are seeking assistance to respond to the notice, connect with Savetaxs. Our tax experts will help you in replying to your tax notice on time with full accuracy. Additionally, if you want, they can also help with your tax obligations.

Glossary
  • e-Verification of ITR: E-verification of ITR is the Filing and Verification of Income Taxes Electronically.
  • Income Tax: Income Tax, a Type of Direct Tax, is Imposed by the Government on the Income of Individuals or Organisations.
  • Income Tax Act: Income Tax Act, an Act to Manage and Govern the Direct Taxes, by Levying, Collecting, and Administering.
  • Income Tax Return: Income Tax Return, Filed by Taxpayers, Contains a Formal Record of the Collected Tax by the Government.
  • ITR Form: Income Tax Return form, a form to report annual income and taxes, used by taxpayers.
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Note: This guide is for information purposes only. The views expressed in this guide are personal and do not constitute the views of Savetaxs. Savetaxs or the author will not be responsible for any direct or indirect loss incurred by the reader for taking any decision based on the information or the contents. It is advisable to consult either a CA, CS, CPA or a professional tax expert from the Savetaxs team, as they are familiar with the current regulations and help you make accurate decisions and maintain accuracy throughout the whole process.

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Frequently Asked Questions

The ITR process actually starts only after your tax return is e-verified successfully or your signed ITR-V reaches CPC, Bangalore, within 30 days of filing your ITR.

The ITR is processed by the Central Processing Centre (CPC). At present, CPC in Bangalore is responsible for the primary computerized assessment and issuing the intimation notice under section 143 of the Income Tax Act, 1961.

Generally, after e-verification, most of the ITRs are processed in 20-45 working days. Additionally, many straightforward returns are completed in about 10-20 business days.

After successful e-verification, refunds in clear cases are credited in 2 to 5 weeks. In some scenarios, even within a week, you get the refund, but that is not guaranteed.

The Income Tax Department, within 9 months from the end of the financial year in which the tax returns are filed, should issue the intimation notice under section 143(1).