Latest news with #CentralisedProcessingCentre
Time of India
29-07-2025
- Business
- Time of India
CPC extends deadline to process invalidated I-T returns
Ahmedabad: The CBDT has issued a circular relaxing the time limit for processing electronically filed income tax returns that were erroneously declared invalid by the Centralised Processing Centre (CPC). Experts say this will assist many taxpayers with their loan and visa applications. This measure will offer relief to a large number of taxpayers whose returns were declared invalid by the CPC on various technical grounds, particularly where signatures could not be verified or validated. This applies to all assessment years, and the time for processing the returns has been extended until March 31, 2026. Jainik Vakil, chairman of the direct tax committee of the Gujarat Chamber of Commerce and Industry (GCCI), said, "Many times, people do not get their returns e-verified and sent to the CPC. However, if it does not reach the CPC within 30 days, the return is invalidated. If the return filed by an assessee is declared invalid by the CPC and consequently not processed, it is advised to immediately follow up with the CPC and get it processed. If any refund is due, then the same will be granted along with interest till date. Make sure that your PAN is linked to Aadhaar. If not, get them linked so that the refund gets issued. All those who face issues with loans and visas due to invalid returns will get relief due to this."
Hans India
27-07-2025
- Business
- Hans India
India's direct tax collections double as incomes rise, compliance grows
India's total gross direct tax collections (before adjusting for refunds) have more than doubled in the last five years, reflecting the high economic growth and improved tax compliance in the country, which has been encouraged with the introduction of the new digital technology. The increase in collections is backed by a 36 per cent jump in the number of Income Tax returns filed in the last 5 years, with around 9.19 crore ITRs submitted in FY 2024-25 compared to 6.72 crore in FY 2020-21 due to the robust expansion in the taxpayer base. The country's total gross direct tax collection stood at Rs. 12.31 lakh crore in 2020-21, which rose to Rs. 16.34 lakh crore in the financial year 2021-22, figures compiled by the Finance Ministry show. The trend continued in 2022-23 and 2023-24 as well, with the amount reaching Rs 19.72 lakh crore and Rs 23.38 lakh crore, respectively. This growth stems from a combination of economic recovery and improved efficiency in tax collection, according to an official statement. By FY 2024-25, the total Gross Direct Tax Collections climbed to an impressive Rs 27.02 lakh crore, which showcases the strength of the Indian economy combined with improved taxpayer compliance and the government's actions to expand the tax base, the statement said. The Indian tax ecosystem has witnessed remarkable growth through various technology-driven initiatives in a phased manner. The current series of PAN (10 digit alphanumeric) was launched in 1995 offering advantages like unique identification, information matching leading to widening of tax base. Linking of PAN with Aadhaar was undertaken in 2017 to improve compliance and eliminate duplication. Further, in recent years, initiatives like the setting up of the Centralised Processing Centre (CPC) in 2009 and the TDS Reconciliation Analysis and Correction Enabling System (TRACES) in 2012 led to automated processing of ITRs and issuance of refunds and resolving mismatch of Tax Deducted at Source (TDS), respectively, the statement said. The introduction of Tax Information Network (TIN) 2.0, a new tax payment platform, has been a trendsetter. With multiple payment modes, real-time credit of taxes, and faster processing of refunds, the department has not just streamlined the process but empowered taxpayers with greater flexibility and convenience, the statement said. With the establishment of the Demand Facilitation Centre at Mysuru, a central repository for outstanding demand has been created, which is a single reference point for both the taxpayer as well as the departmental officer. In the last decade, focusing on global technological revolutions, the Income Tax Department (ITD) launched PROJECT INSIGHT, building an integrated data repository, creating a "360-degree profile" of each taxpayer. This Data Warehousing and Business Intelligence platform represents a paradigm shift in how the department leverages data analytics for improving compliance and widening the tax base. Further, the Faceless Assessment Scheme launched in 2019 targets to enhance transparency, efficiency, and accountability by eliminating the physical interface between the taxpayer (Assessee) and the tax officer (Assessing Officer) through features like Automated Random Allocation and Electronic Communication. The Annual Information Statement (AIS) was implemented on the Compliance Portal of the Income Tax website on November 2021 which provides taxpayer's financial activities across the financial year, including records related to Tax Deducted at Source (TDS), Tax Collected at Source (TCS), stock market transactions, mutual fund investments, and other relevant financial data. Besides, the introduction of pre-filled returns, facilitated by the Annual Information Statement (AIS) and Taxpayer Information Summaries (TIS), facilitates filing returns. NUDGE, which stands for Non-Intrusive Usage of Data to Guide and Enable Taxpayers, has also been introduced, based on behavioural economics and psychology, which refers to a subtle suggestion or influence or intervention that can change the behaviour of individuals in a predictable way without limiting their freedom of choice. Accordingly, Section 139(8A) inserted by the Finance Act, 2022 permits taxpayers to file an updated I-T return within 24 months from the end of the relevant assessment year with effect from April 1, 2022.
NDTV
19-07-2025
- Business
- NDTV
ITR Refund Delays In 2025: What Taxpayers Need To Know
The tax filing season for 2025 has seen unprecedented efficiency from the Income Tax Department, with the average refund processing time dropping from 93 days in 2013 to a mere 17 days currently. This remarkable improvement, driven by digital initiatives and automation, has seen over 1.16 crore ITRs filed for AY 2025-26, with 1.09 crore already verified. However, despite this progress, a growing number of taxpayers are expressing concern over delayed refunds, with many waiting three to four weeks post-verification. Why the Delay? Stricter Scrutiny to Blame The primary reason for these unexpected delays, say tax experts, is the Income Tax Department's intensified scrutiny process this year. The department is not only examining current-year returns but also old ones, aiming to curb incorrect or fraudulent refund claims. This rigorous verification means that returns flagged for suspicious activity or those requiring additional document checks are experiencing a longer processing time. Checking Your Refund Status and Lodging Complaints If your ITR has been filed and e-verified, but your refund remains elusive, taxpayers can easily check its status. Simply log in to the income tax portal and navigate to the "View Filed Returns" or "Refund/Demand Status" section. Ensure your bank account is pre-validated for a smooth transaction. Should the delay persist without apparent reason, the Income Tax Department offers an "e-Nivaran" facility for online complaints. If necessary, the issue can be escalated to the Centralised Processing Centre (CPC) or your Assessing Officer. Interest For Delayed Refunds A silver lining for those experiencing prolonged delays is the provision under Section 244A of the Income Tax Act. This section mandates that if the department issues a refund after the stipulated time, taxpayers are entitled to receive interest on the delayed amount. The overall tax refund system has witnessed substantial growth, with refunds increasing by 474% from Rs 83,000 crore in 2013-14 to Rs 4.76 lakh crore in 2024-25. While delays can be frustrating, taxpayers are advised to remain patient, regularly check their refund status online, address any deficiencies in their documents, and utilise the available grievance redressal mechanisms to ensure their refund is processed.
News18
17-07-2025
- Business
- News18
ITR Filing 2025: Filed the Wrong Form? Here's What You Need to Do
If you have filed the wrong ITR, then you can file a revised returns. The income tax department has finally activated the ITR-2 and ITR-3 forms for e-filing income tax returns for the financial year 2024-25 (assessment year 2025-26). With that, all major ITR forms from 1 to 4 are available to file by taxpayers. The income tax department earlier announced the extend the deadline for filing the ITR FY2024-25 until September 15, 2025, giving more time to taxpayers. One of the most common mistakes taxpayers make is selecting the wrong ITR form, which could lead to notices from the tax department or even penalties. Therefore, it's important to be cautious while filing the returns, especially when choosing the ITR form depending upon your income and eligibility. Steps to Fix a Wrong ITR Form When to File: If you have filed the wrong ITR, then you can file a revised returns. However, you should do before the ITR filing deadline (September 15 without penalty and December 31 with penalty), for AY 2025-26, unless extended). There's no limit on the number of revised returns, as long as they're filed within this timeline. You should also remember that your return hasn't been processed so far. If it's done, then you can't file the revised return. How to File: Log in to the e-filing portal ( Go to 'e-File" > 'Income Tax Returns" > 'File Income Tax Return." Select 'Revised u/s 139(5)" as the filing type. Enter the acknowledgment number and filing date of the original return. Choose the correct ITR form, update all details, and submit. E-verify the revised return using Aadhaar OTP, net banking, or digital signature within 30 days, or send the signed ITR-V to the Centralised Processing Centre (CPC) in Bengaluru. Note: The original return must have been filed on time to file a revised return. Verify the original return first, as unverified returns cannot be revised. File an Updated Return (Under Section 139(8A)): If the deadline for a revised return (December 31, 2025) has lapsed, you can file an Updated Return (ITR-U) within 48 months from the end of the relevant financial year (i.e., by March 31, 2029, for FY 2024-25). ITR-U allows corrections but may attract additional tax or penalties for underreported income. Consult a tax professional to assess the implications. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
10-07-2025
- Business
- Business Standard
Filed wrong ITR form? Consequences & how to fix it
With the ITR filing season in full swing, one mistake that many taxpayers make is selecting a wrong Income Tax Return (ITR) form. Experts warn this error can lead to delays, notices from the tax department, and even penalties in some cases. But there are remedies available, if you act in time. Why the right ITR form matters 'Filing an incorrect ITR form can render the return defective under Section 139(9) of the Income Tax Act,' says Sandeep Bhalla, partner at Dhruva Advisors. For example, using ITR-2 instead of ITR-3 for business income could result in income remaining unreported, triggering underreporting penalties. In some cases, the return may simply be treated as invalid unless corrected within the timeline. The Centralised Processing Centre (CPC) flags such returns and issues a notice. 'The taxpayer then gets 15 days to file a corrected return. Failing to do so means the original return is treated as not filed at all,' warns Vivek Jalan, partner at Tax Connect Advisory Services LLP. Financial and legal risks The fallout of filing the wrong form isn't limited to administrative inconvenience. 'It can delay refunds, disallow deductions like 80C or HRA, and even attract late filing fees of up to Rs 5,000,' explains Shefali Mundra, chartered accountant and tax expert at ClearTax. If the error leads to underreporting income, penalties under Section 270A may apply 50 per cent of underreported income or 200 per cent in cases of misreporting. 'Incorrect reporting also increases the chances of scrutiny, especially if details don't match AIS, TIS, or Form 26AS,' adds Niyati Shah, chartered accountant, Vertical Head – Personal Tax at 1 Finance. How to fix it? Taxpayers can file a revised return under Section 139(5) by December 31 of the relevant assessment year, as long as the original return was filed on time. 'If this window has lapsed, the Updated Return (ITR-U) under Section 139(8A) allows corrections within 48 months,' Bhalla points out. Tips to avoid mistakes Experts recommend understanding income sources thoroughly before selecting a form. 'A common mistake is assuming ITR-1 applies to all salaried individuals, even those with multiple properties or capital gains,' warns Shah. Taxpayers should verify pre-filled data and use tools that recommend the correct form or consult professionals when in doubt.
