Circular No. 07/2025 has been issued by the Central Board of Direct Taxes (CBDT) that grants relief to the taxpayers whose income tax returns were filed late, though accepted under the condonation of the delay provisions.
The same has emerged when issues were raised for the non-processing of these returns, which results in delayed refunds.
As per the circular, after the condonation orders from competent authorities, various income tax returns were furnished electronically u/s n 119(2)(b) of the Income-tax Act, 1961, could not be processed in the specified duration u/s 143(1) due to technical issues.
Under the former CBDT circulars issued in 2015, 2023, and 2024, the same affected returns were accepted.
Major Points:
- Processing Extended: Now, the valid delayed ITRs furnished electronically up to March 31, 2024, can be processed. Such returns should have been filed following a condonation order u/s 119(2)(b).
- Due Date for Intimation: U/s 143(1) intimations for these returns should be issued by March 31. 2026.
- Exclusions: Where the assessments or reassessments (u/s 143(3), 144, 147, etc.) have been completed earlier for the relevant assessment year, the same relaxation shall not be applicable.
- Refunds and PAN-Aadhaar: Refunds, including applicable interest, will follow. In case where PAN and Aadhaar are not linked, as per Circular No. 03/2023, refunds shall not be issued.
- Systems Compliance: The Directorate of Income Tax (Systems), Bengaluru, has been given the task of specifying the procedure for ensuring timely processing.
Taxpayers from the above initiative might benefit from awaiting refunds and bring procedural clarity in managing the delayed Income tax returns accepted via condonation.
