Income Tax Department to Process All Pending ITRs by November 2025 — Refunds or Notices Expected Soon
New Delhi, June 10, 2025 — If you're still waiting for your income tax refund despite filing your Income Tax Return (ITR) on time for the financial year 2022–23, there's finally some good news. The Income Tax Department has issued a fresh directive stating that all valid but unprocessed ITRs will be processed by November 30, 2025. This move is expected to bring relief to thousands of taxpayers awaiting updates on their filings.
The order, dated June 9, 2025, confirms that returns filed within the deadline — especially by July 31, 2023 (Assessment Year 2023–24) — but still pending due to technical issues, will now be taken up for processing. This includes cases where there has been no communication, no tax refund, and no tax demand raised so far.
What This Means for Taxpayers
The department has laid out three possible outcomes for these pending ITRs:
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Refund Issued: If excess tax was paid, taxpayers will receive their due refunds, possibly including interest as per provisions under the Income Tax Act.
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Tax Demand Notice: If any discrepancies are found during processing — for instance, underreported income — a tax demand notice may be sent to the concerned individual.
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Neutral Processing: In some cases, the return will simply be processed with no refund or demand issued, but an official confirmation will be shared.
Legal Framework and Extension
As per the Income Tax Act, 1961, the standard timeline for processing any ITR is nine months from the end of the financial year. That means returns for FY 2022–23 were originally supposed to be processed by December 31, 2024.
However, due to several returns remaining unprocessed — largely because of system-related delays — the department has invoked Section 119(2)(a) of the Act to extend the timeline. As a special relaxation, the deadline is now pushed to November 30, 2025. Taxpayers will also receive official communication under Section 143(1) regarding the outcome of their return.
Why the Delay?
The delay in processing these ITRs has largely been attributed to backend system issues and technical glitches in the centralized processing system. With this new directive, the department aims to resolve all such cases and clear the backlog before the extended deadline.
What Should You Do?
Taxpayers who filed their ITRs on time and are yet to receive any update do not need to take immediate action. The department will automatically process the return and issue the necessary communication.
However, it is advisable to keep an eye on your registered email and the Income Tax e-filing portal for any updates or notices. In case of a refund, ensure your bank account details are correctly updated in the portal to avoid any delays in credit.
Final Word
This directive by the Income Tax Department is a welcome move for compliant taxpayers who’ve been in limbo due to system delays. Whether it’s a refund, a demand notice, or simply a confirmation, all pending ITRs from FY 2022–23 are now set to be resolved by November 2025.
Stay alert and check your inbox regularly — your long-awaited tax update may arrive any time soon.
