Long-awaited tax refunds may finally land as 2023-24 returns are processed

Income Tax returns valid selected for scrutiny or delayed due to taxpayer-related issues will not get relaxation

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The Central Board of Direct Taxes (CBDT) will allow more time for processing pending returns filed under Section 139 of the Income Tax Act, 1961, for assessment year 2023-24 (AY 2023-24). This could result in long-awaited refunds or Income Tax demand notices reaching taxpayers over the next few months.

 

What CBDT has said

 

In a directive issued under Section 119(2)(a) of the Act, the CBDT has relaxed the timeline laid out in the second proviso to Section 143(1). “Valid electronically filed returns for AY 2023-24, which remained unprocessed due to the lapse of the statutory timeline, shall now be processed and intimations under section 143(1) will be sent by November 30, 2025,” the order dated June 9, 2025, states.  Calculate Income Tax: Income Tax Calculator Tool

 

This relief is only for Income Tax returns (ITR) that are valid but were not processed earlier. Returns selected for scrutiny or delayed due to taxpayer-related issues will not be covered under this relaxation.

 

Who benefits?

Taxpayers awaiting refunds for AY 2023-24 due to processing delays. 

Returns that were electronically filed under Section 139, but couldn’t be acted upon within the original deadline. 

However, the CBDT has clearly stated that this relaxation “shall not be applicable” to:

 

ITRs flagged for scrutiny assessments.

ITRs that are pending due to reasons attributable to the assessee, such as missing information or mismatches.

 

No refund without PAN-Aadhaar link

 

There’s a caveat. If your PAN and Aadhaar are still not linked, any eligible refund will not be released. The CBDT reiterated that “refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made” unless PAN-Aadhaar is linked, according to the circular by CBDT

 

What should you do now?

 

Check your ITR status on the e-filing portal.

 

Ensure PAN-Aadhaar linkage if you’re expecting a refund.

 

Watch out for communications from the Income Tax Department — you may either get a refund or a notice of demand depending on your filing.

 

With this extended window, the tax department aims to clear a significant backlog, bringing relief and resolution to lakhs of taxpayers.