ITR Processing: Required Time To Process Returns, Issue Refunds

Outlook Money

Income Tax Act

Income-tax Act, 1961 has set a maximum time limit for the processing of ITRs filed. According to section 143(1), an intimation of the ITR processing must be sent within nine months from the end of the financial year the ITR was filed.

Income Tax Act

What To Do If ITR Is Not Processed

The assessee can raise a grievance on the e-filing portal if the ITR is not processed within nine months from the end of the financial year in which it was filed.

ITR not processed

Why Does ITR Processing Take Time

The time required to process an ITR depends on various factors, such as the form in which the return is filed, the status of the assessee, and so on.

ITR Processing Time

Kind Of Intimations One Gets Once An ITR Is Processed

(1) ITR Processed With No Payment Due: This indicates that the department has accepted the return, and there is neither a tax refund due nor any tax payable.

Processing ITR

2. Refund Issued

This indicates that the department has accepted the return and determined that a refund can be paid.


3. ITR Is defective

One may receive an intimation that states that the ITR filed is defective under Section 139(9). It could be due to several reasons, like, the taxpayer may have used an incorrect ITR form.


4. Additional Tax Demand Due To Discrepancies

This implies that discrepancies or mismatches in ITR resulted in an additional tax demand. Possible reasons could be not including income reflected in the AIS or the department denying credit for any TDS/TCS.

Tax Demand