Circular No. 10/2025

Relaxation of time limit for processing of returns of income filed electronically which were incorrectly invalidated by CPC

What this is

Circular No. 10/2025 was issued by the Central Board of Direct Taxes on 28 July 2025. Its subject is Relaxation of time limit for processing of returns of income filed electronically which were incorrectly invalidated by CPC.

What it does

Reopens processing for returns the Centralised Processing Centre wrongly threw out. The Board relaxes, under section 119, the time limit in the second proviso to sub-section (1) of section 143, and directs that returns filed electronically up to 31 March 2024 which were erroneously invalidated by the Centre shall now be processed, with the intimation under sub-section (1) of section 143 to be sent by 31 March 2026. Everything that follows from processing, including refund with interest as applicable, is to follow as well. Where the permanent account number is not linked with the Aadhaar number, no refund is to be made, as already directed by Circular No. 03/2023 dated 28 March 2023.

Why it was issued

The Centre had received grievances about returns being erroneously invalidated for various technical reasons, and the ordinary time for processing them had run out, the latest being 31 December 2024 for assessment year 2023-24, so the returns had to be validated and processed.

Who it reaches

Assessees whose electronically filed return was shown as invalid at the Centre
Assessees whose refund never issued because the return was never processed
Assessees whose account number is not linked with Aadhaar
The Centralised Processing Centre and the Systems directorate carrying out the exercise

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.119	s.239
s.143	s.270

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it.

F. No.225/30/2025/ITA-II Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Circular No. 10/2025 North Block, the 28th July, 2025 Order u/s 119 of the Income-tax Act, 1961 Subject: Relaxation of time limit for processing of returns of income filed electronically which were incorrectly invalidated by CPC - reg. It has been brought to the notice of Central Board of Direct Taxes ('the Board') that CPC-Bengaluru (CPC) has received grievances regarding erroneous invalidation, due to various technical reasons, while processing the returns filed electronically for different assessment years. The time period for processing these returns has lapsed, latest being 31.12.2024 for AY 2023-24. Therefore, these returns need to be validated and processed as per law. 2. The matter has been considered by the Board and it has been decided to relax the timeframe prescribed in second proviso to sub-section (1) of section 143 of the Income-tax Act, 1961 (the Act) in exercise of its powers under section 119 of the Act. The Board hereby directs that returns of income filed electronically upto 31.03.2024 which have been erroneously invalidated by CPC shall now be processed. The intimation under sub-section (1) of section 143 of the Act in respect of processing of such returns shall be sent to the assessees concerned by 31.03.2026. 3. All subsequent effects under the Act, including issue of refund along with interest as applicable, shall also follow in these cases. In those cases where PAN-Aadhaar linkage is not found, refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made as laid down in Circular No.03/2023 dated 28.03.2023 vide F.No.370142/14/2022-TPL. 4. This may be brought to the notice of all for necessary compliance. (Dr. Cassi Jayaprakash.T) Under Secretary to the Government of India Copy for information to: i. Chairman (CBDT) and all Members of CBDT ii. All Pr.CCsIT/DsGIT iii. DGIT(Systems), Delhi & DGIT (Systems), Bengaluru with request for further necessary action in the matter iv. Pr.DGIT, Directorate of Admin & Taxpayers Services v. ADG(Systems)-4 with request for uploading on department's official website vi. CIT (Media & TP), CBDT vii. JCIT, Database Cell - for uploading on IRS Officers website viii. Guard file Under Secretary to the Government of India

What to watch

The relaxation reaches only returns filed electronically up to 31 March 2024, and only those invalidated erroneously - a return correctly treated as invalid is not covered.
31 March 2026 is the outer date for the intimation, so a case not taken up by then does not get the benefit.
The refund follows the processing, but not where the account number and Aadhaar are unlinked; that bar in Circular No. 03/2023 is expressly preserved, so the linkage is the first thing to fix.
The circular relaxes the processing time limit only; it does not validate a return that was defective for any other reason.

Where you meet it

Where the portal shows an old return as invalid and no intimation under sub-section (1) of section 143 was ever issued, and a refund for that year is outstanding.

What it names

It mentions. Circular No. 03/2023, Circular No. 10/2025

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Circular No. 6/2026 — Condonation of delay in filing Form No. 10AB electronically for approval under clause(ii) of the first proviso to sectio 2 July 2026
Circular No. 2/2026 — Order under section 119 of the Income-tax Act, 1961 for extension of timeline for issuance of tax deducted at source (TD 25 March 2026
Circular No.15/2025 — Extension of timelines for filing of various reports of audit and income tax returns ITRS for the assessment year 2025 2 29 October 2025
Circular No. 7/2025 — Relaxation of time limit for processing of valid returns of income filed electronically pursuant to order u/s 119(2)(b) 25 June 2025
Circular No. 6/2025 — Extension of due date for furnishing return of income for the Assessment Year 2025-26 27 May 2025
Circular No. 5/2025 — Circular No. f)"" /2025 28 March 2025

← Circular No. 11/2025 · Circular No. 9/2025 →

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.