Income Tax Return Processing in India
Filing your Income Tax Return (ITR) is just the first step in completing your tax responsibilities. Once your ITR is submitted, the Income Tax Department begins a process called ITR processing — where your details are verified, your tax liability is assessed, and a final intimation is issued.
Many taxpayers wonder what exactly happens after clicking “Submit.” In this article, we explain how ITR processing works, how long it takes, and what you should do if there are discrepancies or delays.
What Is ITR Processing?
ITR processing is the procedure by which the Income Tax Department examines your return to ensure the income, deductions, TDS (Tax Deducted at Source), and tax payments are correctly declared.
This process is handled by the Centralized Processing Centre (CPC) in Bengaluru, and it ends with the department sending you an intimation under Section 143(1).
Key Steps in ITR Processing
1. ITR Filing and Verification
After you submit your return online on the Income Tax portal, you need to verify it — either electronically (using Aadhaar OTP, net banking, or EVC) or by sending a signed physical copy to CPC Bengaluru. Only once verified is your return taken up for processing.
2. Preliminary Checks by the Department
The CPC starts by checking basic parameters:
PAN validity and linking with Aadhaar
Filing under the correct ITR form
Timely submission (within due date or belated)
Duplicate or multiple filings, if any
3. Cross-Verification of Data
Your ITR details are matched with:
Form 26AS and AIS (Annual Information Statement)
TDS returns filed by employers or payers
Bank interest and other income disclosures
Claimed deductions under Sections 80C, 80D, etc.
If discrepancies are found, they may result in adjustments or a notice.
4. Adjustment of Errors (if any)
Under Section 143(1)(a), the CPC can make arithmetical corrections or disallow incorrect claims. For example:
Excess deduction claimed under 80C
Mismatch in TDS or advance tax paid
Non-disclosure of income appearing in AIS
You may receive a notice asking for a response, or the changes may be processed automatically.
5. Issue of Intimation under Section 143(1)
Once your ITR is processed, the department issues an intimation. This intimation serves one of the following purposes:
No Demand/No Refund: Your return matches with department records.
Refund Determined: You’re eligible for a refund, which will be credited soon.
Demand Payable: There is an outstanding tax liability to be paid.
The intimation is sent to your registered email ID and also available on the income tax portal.
Time Limit for ITR Processing
The Income Tax Department is legally allowed up to 9 months from the end of the financial year in which the return was filed to process your ITR. However, in most cases, processing is completed within 7 to 45 days of verification — especially for simple returns with no errors or mismatches.
Common Reasons for Delay in ITR Processing
Return not verified or delayed verification
Mismatch in TDS or income details
Pending response to notices or queries
Manual scrutiny cases (rare for salaried individuals)
Conclusion
ITR processing is a behind-the-scenes step that ensures your return is accurate and complete. While most returns are processed automatically and without issues, being proactive — by verifying data, filing on time, and keeping documents in order — helps avoid future complications.
If you haven't received your intimation or refund, don’t panic. Keep checking your portal, respond to notices promptly, and stay updated on your return status.
