ITR marked invalid due to tech glitch? Income Tax Dept issues THIS big relief for taxpayers

The move comes in response to grievances received by the Centralized Processing Centre (CPC) in Bengaluru, which highlighted that returns from various assessment years were wrongly invalidated due to system glitches.

In a major relief for taxpayers, the Central Board of Direct Taxes (CBDT) has issued an order under Section 119 of the Income-tax Act, 1961, allowing processing of electronically filed income tax returns (ITRs) that were previously marked invalid due to technical issues.

The Central Board of Direct Taxes (CBDT) has issued an order under Section 119 of the Income-tax Act, 1961 to process electronically filed income tax returns (ITRs) which were earlier marked as invalid due to technical issues. This is in response to grievances received by the Centralized Processing Centre (CPC) in Bengaluru that returns of various assessment years were wrongly invalidated due to system glitches.

The window for processing these returns had already lapsed, the last date being December 31, 2024 for Assessment Year 2023-24. But now the new order will override the earlier timeline and CPC can take necessary action in such cases.

Returns Filed Upto March 31, 2024 Now Eligible for ProcessingAs per the order, ITRs filed electronically up to March 31, 2024 but declared invalid by CPC shall now be processed. The Board has relaxed the time-frame under the second proviso of sub-section (1) of section 143 of the Act using its powers under Section 119. The order also clarifies that intimation under section 143(1) regarding processing of such returns shall be sent to the taxpayers by March 31, 2026.

This relaxation will benefit thousands of taxpayers who were left in limbo due to invalidation of their returns, potentially unlocking refunds and resolving tax related issues.

PAN-Aadhaar Linkage Still Mandatory for RefundsWhile this is a welcome relief, CBDT has reiterated that refunds will not be issued if PAN is not linked to Aadhaar. This is as per Circular No. 03/2023 issued on March 28, 2023. The circular states that no refund, either full or part, shall be issued unless PAN-Aadhaar linkage is confirmed in the system.

Taxpayers are advised to ensure their PAN and Aadhaar are linked to avail the benefits of this new order. CBDT has directed all concerned departments to ensure compliance with this relaxation.