The Central Board of Direct Taxes (CBDT) has issued Circular No. 07/2025 dated 25th June 2025, granting much-needed relief to taxpayers by relaxing the time limit for processing income tax returns (ITRs) that were filed electronically pursuant to condonation orders under section 119(2)(b) of the Income-tax Act, 1961.
This decision comes in response to various grievances raised by taxpayers whose delayed but condoned ITRs couldn’t be processed within the original timeframe due to technical issues — resulting in pending refunds.
✅ Key Highlights of the Circular
- Applicable Returns: Valid income tax returns filed electronically on or before 31st March 2024, where the time limit for issuing intimation under section 143(1) has expired.
- Relaxation Granted: CBDT has relaxed the time limit for such cases and allowed processing of these returns.
- Deadline for Intimation: Intimation under section 143(1) must now be issued to the assessees by 31st March 2026.
- Authority Invoked: The relaxation has been made using CBDT’s powers under section 119 of the Income-tax Act.
“It has been decided to relax the time-frame prescribed in the second proviso to sub-section (1) of section 143 of the Act… valid returns of income filed electronically on or before 31.03.2024 pursuant to condonation… shall be processed now,” the circular stated.
⚠️ Exceptions and Conditions
This relaxation does not apply to:
- Cases where assessment, reassessment, recomputation, or revision proceedings have already been completed for the relevant assessment year.
- Returns where PAN is not linked with Aadhaar, as per CBDT Circular No. 03/2023 dated 28.03.2023.
👉 How to Link PAN with Aadhaar
Download the Circular by clicking here
🔄 What Happens Next?
The Director General of Income-tax (Systems), Bengaluru has been instructed to specify procedural steps to ensure timely processing of such ITRs.
This initiative is expected to:
- Clear backlog of valid but delayed ITRs
- Facilitate pending refunds
- Offer procedural relief to genuine taxpayers
📌 Related Resources from TaxRoutine
- 🗂 Visit our Repository for historical circulars and due date trackers.
- ⚙️ Explore Tax Services offered through our platform for assistance in filing condonation applications or handling delayed ITRs.
📢 Stay Updated
📬 Follow us for more updates on taxation and compliance:
➡️ Instagram | Twitter | LinkedIn |
