The Central Processing Centre (CPC) unit of the Income Tax Department processes the ITR. It verifies the details mentioned in the ITR within the hand on information and, under Section 143 (1), sends a notice of intimation to the mentioned email address. At present, CPC in Bangalore is accountable for carrying out all primary assessments.
Further, once you e-verify your returns, your ITR process begins shortly. Generally, the filed ITR is processed within 20-45 working days of e-verification.
Want to know in detail about the ITR processing time? Read the blog and get all the required information in it.
- The ITR processing at CPC, Bangalore, only starts after you e-verify your returns successfully or the ITR-V form has been received by the IT department.
- Generally, the ITR processing takes 20-45 working days from the e-verification date.
- Errors, mistakes in information between your ITR data and available information by the tax department of your income are the primary reasons for delaying the ITR processing.
- Once the e-verification process is complete, under section 143(1), you get an intimation notice via email. It contains the details of the final tax computation.
- Further, if you receive any notice from the income tax department regarding discrepancies, promptly respond to it.
- The database was expanded with the IT department to cross-check most of the made tax deductions and claimed refunds.
- As compared to previous financial years, unusually high tax refunds were claimed.
- Wrong details in the ITR return or differences between the data of the IT department and your ITR.
Income Tax Return Filing and ITR Verification
To avoid penalties and late fees, taxpayers should file their tax returns within the given deadline. Once you file your ITR and verify it, the tax return is processed, whether it is done after or before the due date. However, for faster processing, it is advisable to file your tax returns promptly.
Further, once the ITR return is verified successfully, the Income Tax Department starts tax processing. Within 30 days from the date you file the ITR return, you can either e-verify it or send it to the ITR-V to CPC, Bangalore.
This was all about the income tax return filing and ITR verification. Moving ahead, let's know the 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 proceeds with the return, and under section 143(1) of the Income Tax Act, 1961, sends an intimation. Along with a message, you received this intimation on your registered email ID and provided mobile number.
For instance, your ITR for the Assessment Year (AY) 2024-25 and PAN card abcxxxxx1r have been processed at CPS. Under section 143(1), you received an intimation on your registered email ID. In case you do not get it, check the SPAM folder of your email.
Each e-filed ITR return is processed, and an intimation is generated under section 143(1) by the CPC. In this process, the data provided in the tax return by the taxpayer and the available records with the CPC are compared by the department. Additionally, after that, under section 143(1), an intimation is generated.
Further, the intimation also consists of a detailed tax computation of the tax as per the IT department and the taxpayers. Usually, this complete process takes 20-45 working days from the e-verification day or the receipt of ITR-V by the CPC.
So, this was all about the ITR processing time under section 143(1). Moving further, let's know about the possible status post the ITR processing.
Status Post the ITR Processing
Under ITR processing, there are three possible ways for taxpayers to decode their intimation received under section 143(1). These are as follows:
- No Demand, No Refund: When the information given by the taxpayer, approved by the IT department, the intimation will be "No Demand, No Refund." This showcases that no taxes or interest are owed by the taxpayer. Additionally, the taxpayer also does not owe any tax refund.
- Refund Determined: If the filed ITR return of the taxpayer is found to be correct and a refund has been claimed, it will be issued to them. Generally, after e-verification of the IT return, 20-45 days are taken to process the refund. However, to the CPC, if the acknowledgment is sent physically, the refund takes longer to proceed.
- Demand Determined: It means additional tax is payable. You receive a demand intimation in case there are discrepancies in the paid taxes or claim tax credits. Under section 143(1), you need to pay the demand amount within the given time stated in the intimation.
Further, you can receive the above-mentioned possible status after the ITR processing.
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Final Thoughts
Lastly, this was all about ITR processing time. It typically takes 20 to 45 working days from the e-verification date to process the ITR applications. Once the application is processed, under section 143(1) of the Income Tax Act, 1961, you get an intimation notice via SMS or email. It indicates one of three outcomes, i.e., no demand, no refund, refund determined, and 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.
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.
Mr Shaw brings 8 years of experience in auditing and taxation. He has a deep understanding of disciplinary regulations and delivers comprehensive auditing services to businesses and individuals. From financial auditing to tax planning, risk assessment, and financial reporting. Mr Shaw's expertise is impeccable.
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