In a move to provide relief to taxpayers and streamline return processing, the Central Board of Direct Taxes (CBDT) has issued an official order dated June 9, 2025, under Section 119(2)(a) of the Income-tax Act, 1961. This directive relaxes the statutory time limit for processing Income Tax Returns (ITRs) filed under Section 139 for the Assessment Year (AY) 2023–24, where the deadline under Section 143(1) had previously lapsed.
Key Highlights of the CBDT Order
Scope of the Relaxation
- The CBDT has extended the processing of valid electronically filed ITRs for AY 2023–24, which were filed under Section 139 of the Act but remained unprocessed due to the lapse of the statutory time limit under Section 143(1).
New Processing Deadline
- Intimations under Section 143(1) for these returns must now be issued on or before 30th November 2025.
Exclusions from the Relaxation
The relaxation will not apply in the following cases:
- Returns selected for scrutiny under the provisions of the Act.
- Returns unprocessed due to taxpayer’s fault, such as incomplete information or non-compliance.
Impact of PAN-Aadhaar Linking
- For taxpayers whose PAN is not linked with Aadhaar, no tax refund will be issued, even if the return is processed.
- This condition is aligned with Circular No. 03/2023 dated 28.03.2023.
Who Should Take Note?
- Taxpayers awaiting processing of ITRs for AY 2023–24.
- Tax professionals and consultants handling clients with delayed return acknowledgments.
- Individuals who missed refund credits due to system deadlines or unprocessed filings.
Departmental Instructions & Communication
The order has been officially circulated to:
- All senior officials including CBDT Chairman and Members
- Principal Chief Commissioners, Directors General of Income Tax, and System Administrators
- Technical teams for uploading the update on official income tax and IRS portals
F. No.225/205/2024/ITA-II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North Block, the 9 June,2025
Subject: – Order u/s 119(2)(a) of the Income-tax Act,1961 regarding processing of
returns filed u/s 139 of the Income-tax Act, 1961 beyond the prescribed time
limit- reg.
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 (AV) 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 relaxation accorded above shall not be applicable to the following returns:
a. returns selected in scrutiny;
b. returns remain unprocessed for any reason attributable to the assessee. - 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. - This may be brought to the notice of all for necessary compliance.
The CBDT’s relaxation under Section 119(2)(a) is a welcome relief for many taxpayers whose returns for AY 2023–24 remained unprocessed due to the expiry of the statutory deadline. By extending the processing window to 30th November 2025, the department aims to ensure that eligible taxpayers receive their return intimations. However, timely PAN-Aadhaar linking remains critical, especially for taxpayers expecting refunds. All stakeholders are advised to review pending returns and ensure compliance to benefit from this relaxation.