Income Tax Return (ITR) processing is handled by the Central Processing Centre (CPC) in Bangalore, which conducts the initial assessment of every filed and verified return. After the Income Tax Department receives your ITR, the CPC processes it and issues an intimation under Section 143(1) to your registered email, stating whether tax is payable, a refund is due, or no discrepancy exists. For the financial year 2023–24 (assessment year 2024–25), filing your ITR by the July 31, 2024 deadline ensures faster processing and timely refund credit to your bank account.
This article explains the ITR processing timeline, influencing factors, how to track your return, and the types of intimations issued post-processing. File your ITR before July 31, 2024 to avoid penalties with Auriga Accounting pvt. ltd. experts!
What Is ITR Processing Time?
ITR processing time refers to the duration the Income Tax Department takes to assess and finalize a taxpayer’s Income Tax Return after successful e-verification. This period begins once the return is e-verified. Recent improvements in the tax system have significantly reduced processing times. For returns filed for Assessment Year 2023–24 (Financial Year 2022–23), processing generally falls within a defined number of days—applicable only to e-verified returns. If verification is done offline using the ITR-V form, the process may take longer.
Average ITR Processing Time in India
As per tax experts, the average ITR processing time ranges from 15–45 days from the date of e-verification.
The Department has considerably accelerated processing over the years:
2022–23 (AY 2023–24): Average processing time reduced to 10 days
2018–19 (AY 2019–20): 82 days
2021–22 (AY 2022–23): 16 days
This improvement highlights the growing efficiency of the Income Tax Department’s systems.
Factors Affecting ITR Processing Time
Several elements influence how quickly an ITR is processed:
E-Verification
Timely e-verification speeds up processing. Physical verification using ITR-V slows it down.Complexity of the ITR Form
Simpler forms like ITR-1 are processed faster than detailed forms such as ITR-3.Errors or Mismatches
Discrepancies—like mismatched income details or missing information—may trigger delays.Scrutiny Selection
Some returns are randomly selected for detailed scrutiny, extending the processing timeline.CPC Workload
Seasonal workload variations at the Central Processing Centre may temporarily impact processing speed.
What to Do if Your ITR Is Not Processed?
If your ITR remains unprocessed beyond a reasonable timeframe, you can take the following steps:
Raise a Grievance on the e-Filing Portal
Go to the Grievance section on the portal and submit a complaint detailing the issue.Contact the CPC Helpline
Reach out to the Central Processing Centre directly through their official helpline numbers for clarification and follow-up.
Both methods help initiate an official inquiry and expedite your return’s processing.
How to Track Your ITR Processing Status
You can easily check your ITR status online:
Visit the Income Tax e-Filing Portal
Log in with your PAN and password
Go to e-File → Income Tax Returns → View Filed Returns
Select the relevant ITR
Click Processing Status
The portal will then display your return’s current stage.
Intimations Received After ITR Processing
After your ITR
is processed, the department issues an Intimation under Section 143(1). It can be one of the following:
1. Intimation Showing Tax Demand
Issued when discrepancies are found between your ITR and departmental records such as:
Form 26AS / AIS / TIS
SFT (Statement of Financial Transactions)
Reasons may include:
Calculation errors
Incorrect deductions claimed
Departmental adjustments
If a mismatch is detected, you may be required to pay additional tax.
2. Intimation for Tax Refund
If your return is accurate and shows excess tax paid, the department processes your refund.
Note: Any discrepancies may delay the refund.
3. No Demand / No Refund Intimation
This means your return was processed without changes—you neither owe additional tax nor are eligible for a refund.
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